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China's Economic Rebound Through Tourism in 2024
China's National Immigration Administration (NIA) has projected an extraordinary increase in travel activity for the 2024 New Year holiday. The daily average of travelers crossing international borders is expected to hit 1.56 million, a remarkable uptick that marks a fivefold rise from the preceding year. This surge is seen as a significant boost for China's tourism sector, which suffered setbacks during the COVID-19 pandemic. The NIA's forecasts suggest that the travel figures could reach up to 90 percent of the pre-pandemic levels seen in 2019, as reported by VisaGuide.World.
This remarkable recovery in travel volume is attributed to several key factors. There has been a resumption of international flights, contributing significantly to the increased mobility. Additionally, several countries, including Thailand and Malaysia, have extended visa-free entry privileges to Chinese citizens. Moreover, China has reciprocated with a unilateral visa-free policy for ordinary passport holders from select countries, including France and Germany.
The impact of this travel boom is expected to be felt across major transportation hubs. Airports like Beijing Capital International Airport, Shanghai Pudong International Airport, and Guangzhou Baiyun International Airport are preparing for substantial increases in passenger traffic, with daily averages projected at 33,000, 68,000, and 34,000 travelers, respectively.
Further, the NIA anticipates a significant rise in passenger movement between Guangdong Province and the special administrative regions of Hong Kong and Macao. Key ports such as Gongbei, Luohu, and Futian are preparing to handle daily averages of 320,000, 190,000, and 180,000 travelers, respectively.
How Will it Affect China Economically?
The economic implications of this travel resurgence are also noteworthy. As per China Briefing, the domestic tourism sector is set to witness a remarkable revival, with total revenue anticipated to surpass $580.96 billion. This figure represents an impressive 96 percent growth, driven by factors such as the relaxation of travel restrictions, increased disposable income among Chinese consumers, and the rising popularity of domestic tourism.
Data from the World Tourism Alliance further highlights the changing landscape of tourism in China. The outbound tourism sentiment index for the first half of 2023 reached 28 percent, a significant rise from the 7 percent recorded in the same period in 2019. This gradual increase in the outbound tourism market underscores a steady, rather than abrupt, rebound in travel interest.
In terms of popular destinations, the first half of the year saw Hong Kong, Macao, Japan, Thailand, France, South Korea, Australia, Canada, the United Kingdom, and Singapore emerge as the top ten outbound travel choices.
Domestic tourism, too, has seen a notable improvement. In the first half of the year, the sector generated $318 billion, $155 billion more than the previous year. This increase is reflected in the spending patterns of urban and rural residents, with urban travel expenditures witnessing a year-on-year increase of 108.9 percent and rural spending growing by 41.5 percent.
This data underscores a robust revival in China's tourism sector, signaling a positive trend for the industry as it navigates the post-pandemic era.