Can we already talk about a resurgence of Chinese tourism in France? (#168) (+ video)
While China has just abolished, on August 30, the Covid test obligation before departure, international tourists are still not coming in China. The scenario in China is similar to that of Chinese tourists visiting France for similar reasons, starting with the price of the plane ticket, is slow to pick up. Consulting firm Oliver Wyman estimates that 2019 levels will not be reached before mid-2024 as Chinese tourists are still waiting to travel outside of domestic or nearby destinations.
In this context, Chinese domestic tourism and local Chinese outbound tourism have returned to 100% and 40% of their 2019 level (Chinese tourism letter #166). Oliver Wyman's survey indicates that shopping is making a strong comeback among Chinese tourists' travel motivations. “In France it’s cheaper than in China, we buy a lot” indicates a Chinese tourist in Paris in August 2023.
If we cannot yet speak of a return of Chinese tourists to Paris, shopping (48% of the travel budget on the rise) could contribute more than expected to this massive return of Chinese tourists to France in 2024. In the meantime, Trip, the main Chinese OTA which accompanies Chinese tourists in their travels in China around the world, organizes events in Silicon Valley and as part of its global strategy to address a good part not only of domestic tourism in China but also Chinese outbound tourism when it will have regained its 2019 level
Even if we cannot yet speak of a comeback of Chinese visitors to Paris, shopping (48% of the growing travel expenditure) may play a larger role in this big influx of Chinese visitors to France in 2024 than originally anticipated. The main Chinese online travel agency, Trip, organizes events in Silicon Valley as part of its global strategy to address a significant portion of both Chinese domestic tourism and Chinese outbound tourism once it has recovered its 2019 level. Trip also accompanies Chinese tourists on their international travels.
1/ China removes the Covid test for travelers
China abolished, on August 30, the obligation of Covid PCR or antigen testing before departure for travelers to China. It is still mandatory to complete a health declaration and the QR code generated on this occasion must be printed.
A relaxation of formalities for entering China for a temporary period has also been confirmed. Since August 10 and until December 31, 2023, applicants in France for a Chinese visa (tourism, business, family, crew and transit) for one or two entries are temporarily exempt from fingerprinting. The visa without fingerprint can then be used during the 3 months from its issue, for a maximum stay of 30 days, specifies Rapide Visa.
2/Can we already talk about a resurgence of Chinese tourism in France?
In France, €58 billion was brought in by foreign tourists in 2019. While they represented 2.4% (2.2 million) of arrivals, Chinese tourists then generated 6% of revenue (€3.5 billion). In 2022, without Chinese tourists, tourism revenues had returned to their 2019 level of €58 billion. While the year 2023 promises to be even better than 2022, 67 billion could be generated, the “tourist season has been excellent” declared Olivia Gregoire, Minister Delegate in charge of Small and Medium Enterprises, Commerce, Crafts and of Tourism. This is would represent an increase of 15% compared to 2022. If in the summer of 2023 Asian tourists (Indian, Korean, Japanese) make their big return to Paris, that's not the case for Chinese tourists.
Many Chinese tourists are still waiting to travel. The difficulties and delays in obtaining a visa appointment in certain large Chinese cities also explain this wait. The riots at the beginning of July in France reinforced some of them in this posture. In fact, as Oliver Wyman points out that 2019 levels will not be reached before 2024 because Chinese tourists are still waiting to travel outside of domestic or nearby destinations (Hainan, Hong Kong, Japan, South Korea) due to cost of flights (24%) and health risks (22%). Those who are still waiting before traveling are planning it for 2024 (24%) or even later (59% in 2025 or 2026). For travelers who have never crossed borders, the delay is even longer, for fear of administrative complications and security issues.
France has not regained its place as European number 1 in Chinese tourism which it occupied in 2019. Spain, taking advantage of the year 2023 of China-Spain tourism and culture, is, in the summer of 2023, the 1st European country with the number of Chinese tourists reaching almost 50% of its 2019 level.
3/ the shopping, new travel lever for Chinese Gen Z with rational purchases
“It’s cheaper than in China, so we buy a lot…” declares a Chinese tourist on vacation in Paris in August 2023.
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Among the motivations for traveling, the study notes a real reversal of trends: shopping is making a comeback. Nearly half of their budget (48%) will be devoted to it in 2023.
Hong Kong remains the preferred destination for shopping, even if its attractiveness continues to erode, followed by Paris, and more broadly France and Italy, which are at the top of the preferred “long haul” destinations. Regardless of luxury shopping categories (accessories, jewelry, clothing), Paris and Milan are very?aspirational. Only cosmetics escapes this rule, with a strong position from South Korea and Japan, established over the past decade, and significant domestic competition from Hainan.
4/Trip.com, the Chinese OTA, organized an event in Silicon Valley
In order to refine its global strategy and its international development, Trip.com organized a Talent Meetup in California. The purpose of this event with more than 100 participants, was to organize a platform for technology talents to acquire valuable information, learn from the experiences of returning talents and connect with influential leaders of the travel industry
5/ Cinema cycle around the "Asian medicines exhibition" at the Paris Guimet museum (September 8-17).
?? | CINEMA As part of the exhibition "Medicines from Asia. The art of balance" #lastdays, the National Museum of Asian Arts - Guimet invites you to discover a selection of 6 films, between September 8 and 17, 2023 .
On the program: romantic or fantastic comedies, thrillers, documentaries about care in Asia.
? Book your tickets here ?? https://lnkd.in/eY59kiNG Full price: 5€
Although we will have to wait until 2024 to talk about a return of Chinese tourists around the world, their travel motivations continue to change. In addition to the growing importance of shopping, experiential and personalized products, such as gastronomy, are popular with Gen Z. Trip.com has launched personalized and experiential offers for Valentine's Day (see Chinese tourism letter #167) also launched “Trekki” NFTs which will be presented in Chinese tourism letter #169 of September 8.
Founder @ TrackMage | I help DTC ecommerce brands create memorable post-purchase experiences, foster repeat business, customer loyalty, boost sales and streamline ops with TrackMage.
1 年Intriguing, Sébastien! The shift towards rational purchases by Chinese Gen Z could have ripple effects in global eComm. Worth watching!