Recent trends indicate a significant shift in the travel preferences of Chinese tourists, with more high-income households opting for domestic destinations over international travel. According to a survey by consulting firm Oliver Wyman, only 14% of high-income households that traveled abroad last year plan to do so again in 2024. The primary reasons cited for this change include the abundance of domestic travel options and the high cost associated with international travel. Traveling within mainland China is much more affordable, with the average cost per person being less than 1,000 yuan, compared to several thousand yuan for trips to destinations like Hong Kong or Japan.
The resurgence of local tourism in China has been a significant driver of the country’s post-Covid-19 recovery. Booking for rural destinations within China saw a substantial increase in 2023 compared to pre-pandemic levels, with domestic tourism trips and revenue surging during public holidays. Smaller cities like Yangzhou, Luoyang, Qinhuangdao, Guilin, and Zibo experienced rapid growth in tourism bookings during peak holiday periods. Experts predict that domestic tourism in China will surpass pre-pandemic levels this year, indicating a strong preference for local travel among Chinese consumers.
While the shift towards domestic tourism has fueled growth in less developed regions of China, the long-term sustainability of this trend remains uncertain. Regions like Guangxi have seen a significant boost in tourism revenue through increased publicity and subsidies to attract visitors. Local governments outside major cities are leveraging social media platforms like TikTok and Xiaohongshu to promote tourist attractions and stimulate economic activity. By creating viral content and engaging their communities, these regions have succeeded in drawing in millions of tourists.
The popularity of TV shows and social media platforms has played a pivotal role in driving tourism to specific regions in China. Dramas set in remote areas like Xinjiang have led to a surge in visitor numbers, showcasing the power of visual media in influencing travel decisions. Unique cultural experiences, such as the barbecue skewer culture in Zibo or the ice sculptures in Harbin, have become social media sensations, attracting millions of tourists to these destinations. Miss Tourism Asia pageants and promotional events are also being used to enhance the visibility of lesser-known cities and drive tourist traffic.
China’s extensive network of high-speed trains and flights has made it easier for travelers to explore small towns and rural areas. The convenience of domestic travel options, coupled with an emphasis on personalized and emotionally fulfilling experiences, has led to a surge in domestic air ticket bookings. Chinese consumers are increasingly seeking unique and diverse travel experiences, prompting businesses and local governments to intensify marketing efforts and collaborate on promoting lesser-known destinations.
As Chinese travelers continue to show a strong preference for domestic tourism, the recovery of international travel is expected to be delayed. It is predicted that a full recovery to 2019 levels of international travel may not occur until late 2025. In the long term, international tourist destinations will need to enhance their offerings to cater to the evolving preferences of Chinese tourists, who are becoming increasingly discerning and demanding when it comes to travel experiences. Upgrading services to match the sophistication of China’s modern hotel and travel infrastructure will be crucial for international destinations looking to attract Chinese travelers in the future.
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