China’s outbound tourism: tapping into the opportunity

Chinese tourists in Thailand, a long-time favourite destination. Image: ScandAsia

After years of isolation brought on by the COVID-19 pandemic, Chinese tourists are once again exploring the world, bringing their curiosity and economic power to nearly every corner of the globe. With eased travel restrictions and a strengthening domestic economy, the number of outbound Chinese tourists has shown solid growth.

In 2023, Chinese tourists again surpassed Americans as the world’s top tourism spenders, and this trend shows no signs of slowing. The number of outbound Chinese travellers is projected to rise from 101 million in 2023 to 130 million in 2024, with further increases expected in the coming years. Although Beijing’s stimulus package announced in September, was too late to impact the heavily travel period of October Golden Week, the resulting increased spending of Chinese consumers is showing promising signs of boosting outbound travel.

A More Accessible World

Visa requirements for Chinese citizens as of time of writing. Dark green for visa-free, lime green for visa on arrival, turquoise green for e-visa. Image: Wikimedia Commons

The environment for overseas travel has also become more accommodating for Chinese travellers. Countries such as Singapore, Cuba, and Azerbaijan have recently introduced visa-free travel for Chinese citizens. This reduction in barriers has encouraged Chinese tourists to venture beyond domestic and nearby destinations, such as Thailand and South Korea, to explore further afield. Perennial favourites like Italy and Australia continue to be considered for holidays, but less-traditional destinations such as Russia and Saudi Arabia are becoming increasingly popular. Even lesser-travelled destinations like Georgia, Tajikistan, Morocco, and Guatemala are witnessing significant growth in Chinese visitors thanks to visa policies.

Chinese tourists in Morocco, a rapidly growing destination. Image: China Daily

The Impact of Chinese Tourism

Chinese tourists are a lucrative demographic for host countries. Known for their willingness to spend generously on accommodation, dining, and shopping, they represent an attractive market. However, to fully capitalize on this opportunity, destination countries must address a few key areas:

1. Payment Systems
Chinese travellers predominantly use platforms like WeChat, Alipay, and UnionPay. Facilitating these payment methods can significantly enhance the travel experience, making transactions seamless, convenient and ultimately more likely. They are also increasingly relevant given the slight downward trend in credit cards in China, dropping from 800 million in 2021 to 767 million by 2023. They are also symbolic a China-friendly business.

2. Digital Marketing and Social Media Presence
A large share of Chinese travellers find inspiration for travel from social media posts. And many more are influenced by those who do. To capture the attention of Chinese tourists, destinations must establish a strong presence on platforms like Xiaohongshu and Douyin. These apps are integral to trend discovery and decision-making for Chinese consumers.

Xiaohongshu is a common place that Chinese people will find travel inspiration from. There is a strong appeal to attractive places, like Saint Petersburg, Russia shown above. Image: Xiaohongshu @小头哥儿

3. Language Accessibility
While younger generations are becoming more proficient in English, many still prefer to use their native language. Many older travellers still rely on translation services. Multilingual staff and accessible translations are increasingly essential in bridging communication gaps.

A Promising Future

Although Chinese outbound tourism has yet to reach pre-pandemic levels, the long-term outlook is optimistic. As China’s economy becomes more consumption-driven and disposable incomes rise, tourism is expected to take up a greater share of household expenditures. With only 10% of Chinese citizens holding valid passports (compared to 41% in Germany and 82% in Britain), there is immense untapped potential in this market.

While growth may proceed at a slower pace than in the 2010s, the steady rise in Chinese outbound tourism presents a wealth of opportunities for destinations worldwide. By catering to their unique preferences and needs, countries can position themselves as preferred destinations in this lucrative and expanding market.