Sept 2023: China Market Update
Alina Xiang
President & CEO, East West Marketing ◆ China Tourism Expert ◆ Trusted Marketing Partner to Travel and Hospitality Clients
Latest News
U.S. Commerce Secretary Gina Raimondo traveled to Beijing for a four-day visit aimed at boosting business ties between the world’s two largest economies while declaring American national security trade measures off-limits for debate. Raimondo wants to boost travel and tourism between the two countries. If China returned to 2019 U.S. tourism levels, it would add $30 billion to the U.S. economy and 50,000 U.S. jobs.
China's minister of culture and tourism said China hopes the United States will further increase direct flights with China and facilitate visa applications for Chinese nationals, according to a ministry statement.
Source: Skift / Reuters
East/West: Key Takeaways
The hottest news lately is about the China visit of U.S. Commerce Secretary Gina Raimondo. The visit highlighted the importance of economic engagement between the United States and China. The potential economic benefits of increased tourism and business cooperation are substantial.
For those primarily concerned about Visa processing times, the feedback from the United States Embassy in China indicates that they will be welcoming additional Visa officers in the coming month to augment their workforce, aiming to better accommodate the increasing volume of Chinese visa applications and meet the demands of Chinese travelers.
Outbound Market & Industry News
China's tourism recovery is heating up as some tours to Europe over the eight-day Mid-Autumn Festival and National Day holiday, observed in about three weeks, are already sold out.
Spring Tour is taking no more reservations for some tours to Europe during the holiday that starts on Sept. 29, the Shanghai-based travel agency said to Yicai. Some of the hottest destinations include Spain, Portugal, Switzerland, France, Italy, Hungary, Croatia, Greece, Iceland, and Denmark. Moreover, the lengthy visa processes require making bookings well in advance.
Source: Yicai Global
China’s international airline capacity has reached 4.6 million seats in August and has been steadily increasing each month this year from a very low base at the beginning of 2023 where international capacity was just 13% of the level in January 2019. China’s international airline capacity - as of August 2023 - is operating at a 50% reduction compared to 2019 levels, according to data from OAG.
Source: OAG
The official destination marketing organization of NYC, New York City Tourism + Conventions, along with nine industry partners, is visiting China from September 7th to September 14th. They will be hosting tourism and media events in Beijing and Shanghai. This it’s first visit to China since 2019, and during the one-week visit, they will organize a series of industry meetings and industry visits. The aim of this visit is to rebuild friendly relationships with Chinese travel industry professionals and media as Chinese citizens resume outbound group travel to the United States.
One of the largest and top leading wholesalers and local receptive in the West and the South China market, Dista Group, held its first roadshow after pandemic. The trip included Chengdu (Sichuan Province) and Kumning (Yunnan Province). More than 300 representatives from local market participated in the event.
Inbound and Domestic Market
领英推荐
A recent index by the World Tourism Alliance highlighting China's inbound tourism indicates that revitalization is well underway, the head of the organization said at a national-level tourism expo in Tianjin. "There is still room for improvement toward fully restoring inbound tourism, and a major surge is expected," said Zhang Xu, chairman of the alliance, on Friday.
Source: China Daily
With the eight-day Mid-Autumn Festival and National Day holiday break set for Sept 29 to Oct 6, China Tourism News reports online agencies are being flooded with inquiries regarding domestic travel. According to data from Tongcheng Travel, domestic flight bookings for the holidays surged by over 40 percent in the seven-day period ending Aug 24, compared to the previous week.
Source: China Daily
East/West Insights
East West Marketing discusses China's recovery market and expectations for outbound travel to U.S. with Dista Group
Dista Group is one of the largest and top leading wholesalers and local receptive in the West and the South China market. Their distinguished range of services include an exceptional summer camp experience, an array of diverse tour packages spanning the United States and other captivating destinations throughout the Americas, as well as personalized and tailored tour packages. Additionally, they offer exclusive educational and business visiting packages designed specifically for MBA and EMBA students.
Q: With recent positive developments in various aspects, what are your expectations for the outbound travel market to the United States in the next year? What is the expected recovery level/percentage of tourist numbers?
A: Chinese tourists have a strong interest in traveling to the United States. However, due to limitations on flights and visas, the recovery is still in its initial stages so far, far from reaching even 10% of pre-pandemic levels. e We anticipate a significant surge in the number of Chinese tourists visiting the US.
Q: Currently, what changes have there been in the overall customer base and market demands compared to pre-pandemic times?
A: The increased costs of airfare and exchange rates has led customers to place a greater importance on mid-to-high-end group tours and quality travel experiences.
Q: What will be the focus of your business and primary product offerings until next summer?
A: Our primary focus leading up from this September to next summer will remain on destination promotion and the development of distinctive thematic products.
?Q: How is the recovery of your American travel products progressing at the moment?
A: So far, some mid-to-high-end products of in-depth travel and study-abroad programs to the United States have partially resumed.
Q: Apart from conventional products on the East and West Coasts, are there plans to introduce more in-depth or new emerging destination products in the coming year?
A: DISTA has always been committed to developing new products and in-depth travel itineraries. Some of the planned themes include fall foliage tours, educational tours, and art-themed experiences on the East Coast.
Q: What are the main challenges you are facing in product development and marketing?
A: In terms of product development, our primary challenge is that the outbound group travel market to the United States has just started to recover, and many resources, such as restaurants, hotels, and new tourist destinations, have changed significantly since before the pandemic. Currently, the major challenges are related to US visa difficulties and the incomplete recovery of flights.
Q: In the process of product development and operation, what kind of assistance and support do you most need from the destination?
A: We hope to receive more information on new travel experiences, thematic activities, educational institutions, and events from the destination to enrich our offerings.?