The orderly recovery of outbound tourism is boosting global confidence in the Chinese economy

After a three-year hiatus caused by the COVID-19 pandemic, China’s outbound group tour has hit the “restart button,” and the first group of Chinese tourists have arrived in Thailand, Cambodia and the United Arab Emirates (UAE), among others ).

From February 6, travel agencies and online tourism service providers in China are allowed to offer group tours to 20 countries, and related air ticket and hotel booking services have also resumed.

The orderly and swift recovery of China’s outbound group travel shows the vitality and potential of the Chinese economy, which will help revitalize the global tourism market and boost consumption at tourist destinations and the outlook for overall economic growth. With the optimization of disease control measures, China’s economic growth potential has been further unleashed, giving more confidence in the global economic recovery.

FASTER THAN EXPECTED REBOUND

A China Air flight landed at Geneva International Airport on Thursday, marking the resumption of direct flights between Beijing and Geneva in Switzerland after streamlining disease control measures.

“We are very happy to have Chinese again in Geneva. Chinese tourists are very important for Switzerland,” said Claude Membrez, board member of the Geneva Tourism and Conventions Association.

Data from travel platforms showed a dramatic increase in outbound travel consultations and reservations as China resumed cross-border group travel.

“I’m so happy and excited to be back… We can feel the hospitality and warm welcome from Thai people,” said Tan Mingyuan, a 43-year-old tour guide who is leading a group of Chinese visitors to Thailand.

Tan, a veteran tourism practitioner with over 20 years of experience, said Thailand has always been one of the top destinations for Chinese travelers and expects a “significant increase” in the number of Chinese tourists visiting Thailand this year.

“Thailand is honored to be among the 20 countries selected to once again welcome tour groups from China. We look forward to seeing many more,” said Yuthasak Supasorn, Governor of the Tourism Authority of Thailand (TAT).

Liu Ning, president of Shanghai Jinjiang Tours Co., Ltd., said the Middle East is also a promising tourist destination for Chinese, as the World Cup in Qatar has drawn much attention to the region and the deepening of economic ties between China and the Middle East east to add the momentum.

A survey by qyer.com, an online platform for self-guided tours, found that more than 90 percent of respondents plan to travel abroad within a year, with about a quarter planning a trip within six months.

Chinese outbound tourism will see a faster-than-expected rebound this year, driven by rising confidence after the rapid market recovery, said Peng Han, director of the Ctrip Research Institute’s strategic research center.

VIP SERVICE

The first tour groups from China were greeted with flowers and a warm welcome on Monday in Bangkok, Thailand, a Southeast Asian country banking on the return of tourists to boost its vital tourism sector.

The central bank of Thailand, the Bank of Thailand, said last month that Thailand’s tourism sector will recover faster after the return of Chinese tourists and that the Thai economy will gain momentum as a result with a continued recovery in tourism and private consumption.

Underlining the importance of Chinese tourists to Thailand’s tourism sector, which accounts for up to one-fifth of Thailand’s GDP, Yuthasak said, “Our thanks go to China, Chinese tour operators and Chinese tourists themselves for their continued trust in Thailand as a holiday destination of choice.”

Yuthasak said TAT aims to welcome at least 7 million Chinese tourists this year.

Air China flight CA745 carrying about 125 Chinese tourists arrived at Phnom Penh International Airport from Beijing on Tuesday and was warmly welcomed by Cambodia’s Minister of Tourism Thong Khon and Chinese Ambassador to Cambodia Wang Wentian and other officials.

Khon told reporters that China is the most important overseas tourism market for the world, and the comeback of Chinese tourists has boosted not only the tourism sector but also the kingdom’s economy.

Jean-Vital Domezon, president of the Geneva Hotels Association, said they can’t wait to welcome Chinese tourists back.

“We can’t wait to see the plane in full and we’re ready to greet them. That’s really important for the hospitality industry,” Domezon said.

A red carpet reception welcomed the first group of 60 Chinese tourists to Abu Dhabi on Tuesday. The Chinese tourists were warmly welcomed at the airport with the national flags of China and the United Arab Emirates and provided with a smooth check-in service. They also received commemorative gifts and special privileges at Ferrari World Abu Dhabi theme park.

“We are very pleased to welcome our very first Chinese guests for the first time in three years. We can’t wait to welcome you all back to our beautiful park. We missed you,” said Deana Taylor, General Manager at Ferrari World Abu Dhabi.

BIG POTENTIAL

China’s outbound tourism is growing rapidly, bringing confidence and impetus to the global tourism industry and economic recovery.

At this year’s ASEAN Tourism Forum, ASEAN countries eagerly looked forward to the return of Chinese tourists. Indonesian Minister of Tourism and Creative Industries Sandiaga Uno said ASEAN’s tourism industry will recover strongly after China resumed overseas traffic.

The World Tourism Organization predicts that international tourist arrivals could reach 80 to 95 percent of pre-pandemic levels in 2023 (compared to 63 percent in 2022) despite ongoing global headwinds.

In an update to its World Economic Outlook report released in late January, the IMF forecast that China’s economy would grow 5.2 percent in 2023, up 0.8 percentage points from the October 2022 forecast, driven by a rebound in private consumption .

Thomas Helbling, deputy director of the IMF’s Asia and Pacific Department, said China’s stronger growth over the next two years will “make a big difference” in services, tourism and aviation, among others.

The IMF official said China’s recovery and strong rebound is a plus for Asia, including positive impacts on some commodity exporters as the IMF expects some increase in energy demand.