July 22, 2024: China Market Update
Alina Xiang
President & CEO, East West Marketing ◆ China Tourism Expert ◆ Trusted Marketing Partner to Travel and Hospitality Clients
Latest News
China’s immigration authorities reported the country’s half-year border-crossing data on July 5, posting a 70.9% year-on-year increase from January to June. The data includes 137 million mainland residents, 121 million residents from Hong Kong, Macao, and Taiwan, and 29.22 million foreigners.
The half-year total of 287 million border crossings was around 83.4% of the 2019 level. The 29.22 million cross-border visits made by foreigners in the first half of 2024 represented a 61.3% recovery rate compared to pre-pandemic figures.
Some 12.34 million ordinary passports were issued, up 23.2% year-on-year.
686,000 port visas were issued, up 267.9% year-on-year, and 388,000 stay and residence permits were issued to foreigners in China, up 2.4% year-on-year.
Source: China Travel News
Outbound Market & Industry News
Chinese citizens are leading the charge in a continued rebound of international travel, exemplified in the second quarter by more than 1.5 million Chinese travelers leaving on outbound trips during the Golden Week holiday— over China’s May Day holiday alone, outbound travel reached 87% of 2019’s numbers.?
What’s more, Q2 reflected a broadening market base of Chinese travelers, with stronger involvement from Gen Z women and older demographics. The top destinations for Chinese travelers still included traditional favorites like Singapore (15.6%), Thailand (13.8%), Malaysia (12%), Japan (11.7%), and South Korea (11.5%). But Q2 saw a noticeable rise in interest toward less common destinations like Europe (10.1%) and Australia (8.2%).
On July 12, Hainan Airlines inaugurated its Beijing-Tijuana-Mexico City route at the Capital Airport. This route is the first direct flight from the Capital Airport to Mexico since the pandemic, offering a more convenient travel option for tourists from both countries. Hainan Airlines operates two round-trip flights per week.
Euro 2024 has highlighted sports' appeal among Chinese tourists. Qunar, an online travel service provider, reported a doubling of flight bookings to Germany during the football event and a 1.5-fold increase in hotel bookings, with prices up by 25 percent. Notably, searches for Berlin, the host city of the Euro 2024 final, on the platform have increased by 253 percent over the last week.
Chinese tourism interest in Paris has increased the most, followed by Berlin, London, Madrid, and Athens, according to Tongcheng Travel. Many group tour packages have sold out on the platform.
Source: Gig News Network?
Chinese tourists have surpassed Malaysians to become the largest source of visitors to Thailand in the first six months of this year with 3.43 million arrivals. Malaysia came in second with 2.43 million arrivals, followed by India with just over 1 million, according to data from the Thai Ministry of Tourism and Sports.
Source: VN Express
Inbound and Domestic Market
Following the recent announcement that China has included Australia on its visa-free list, Australian travelers have significantly increased search interest. Trip.com search data reveals that Australian users have increased their use of China-related keywords by 80%, highlighting their strong interest in this visa-free scheme.
Interest in China has been increasing globally since the country expanded its unilateral visa-free travel policy, with 14 countries and regions added to the arrangement from November 2023 until the present. In Q1 2024, there was a significant 400% growth in inbound travel to China, driven by the benefits of such visa-free policies.
To encourage travellers from Australia to explore China, Trip.com launched its “One Flight Away to China” campaign. Travellers can take advantage of special product promotions, such as flights, hotels, and attractions. This includes promo codes offering up to AUD200 off flights to China and AUD50 off hotel stays.
Source: TTR Weekly
East/West Insights?
Q+A with Costa Yang, GM of Shanghai Office, Topway International Group Inc.
The company is a North American inbound travel agency headquartered in Washington D.C., registered in 2008. It’s an international wholesaler with hotel, transportation and related service resources in North America. Most of their business is government groups and business groups.
Q: With recent positive developments in various aspects, what are your expectations for the outbound travel market to the United States in 2024? What is the expected recovery level/percentage of tourist numbers?
A: 2024 still saw a sluggish state of Chinese leisure group tours due to visa and flight issues. However, high-net-worth individuals continued to travel and maintained steady growth. Business delegations have always been greatly affected by policies, such as recent visits by the Ministry of Culture and Tourism, corporate overseas visits to the US, etc. It is expected to increase by 20-30% compared to the end of 2024.
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Q: What is the overall demand of customers for American products at present?
A: The demand from business, government, and high-net-worth individuals includes luxury hotels/private VIP services/business visits/invitations for official visits/corporate roadshows/promotion conferences, etc.
Q: What will be the focus of your business and primary product offerings in 2024?
A: Our major business is government and business groups, so we will still focus on meeting the demands of these groups and individuals of high-net-worth.
Q: How is the recovery status of your U.S. products at the moment?
A: I believe regular products have recovered well, but the recovery of business activities is not very optimistic. They always have very limited time for applying for visas, and it has been very challenging given the current interview waiting period.
Q: Apart from conventional products on the East and West Coasts, are there any plans to introduce more in-depth or new emerging destination products in 2024??
A: Of course. In-depth tours of Yellowstone are still very popular. Meanwhile, there are opportunities in central cities and niche attractions and towns near major cities. Our customers have also been interested in attending conferences/exhibitions in the East Coast, such as NYC, DC, Philadelphia, Chicago, etc.
Q: What are the main challenges you are facing in product development and marketing? In the process of product development and operation, what kind of assistance and support do you most need from the destination?
A: Very high-end products are not being met in a timely manner. The resource coordination for business activities is not sufficient. There has also been a very high demand of invitation letters issuing for business/government groups, we need support from local government resources and corporate resources.
Notable Key Aspects
Insights of China Trading Desk’s most recent Travel Sentiment Survey (Q2)
The high level of education and concentration in Tier-One cities suggest that travel products and marketing strategies should target educated and urban populations.?
There is a growing interest in traveling overseas, especially among younger demographics and residents of major cities, indicating a recovering travel market.?
The tendency to book trips less than a month in advance highlights the need for flexible and last-minute travel deals.
A strong preference for independent travel suggests a market for customizable and flexible travel options, especially among younger travelers.
Travel plans are significantly influenced by economic and health factors, suggesting that economic stability and safety measures will be key in travel recovery.
Food, culture, and landmarks are major travel motivators, which should be highlighted in destination marketing.
The willingness to spend a substantial amount on travel and the propensity for pre-trip research indicate a market for premium travel experiences and detailed informational resources.
Digital platforms like travel apps, Xiaohongshu, and Douyin are crucial for travel planning, emphasizing the importance of a strong online presence.
Friends' recommendations play a significant role in accommodation choices, suggesting that word-of-mouth and social proof are important marketing tools.
The preference for digital payment methods like Alipay and WeChat Pay indicates the need for seamless and integrated payment options in the travel industry.