chinese tourism europe

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Chinese tourism in Europe - statistics & facts

What are the preferred destinations of chinese tourists in europe, what are the main drivers and obstacles of tourism from china to europe, key insights.

Detailed statistics

Number of tourist arrivals from China to Europe 2019-2022, by destination

Intention to travel long-haul from China to Europe 2023

Editor’s Picks Current statistics on this topic

Travel, Tourism & Hospitality

Number of outbound visitor departures from China 2010-2024

Chinese tourist arrivals in selected European countries 2016-2022

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Countries with the highest inbound tourism receipts worldwide 2019-2022

Countries with the highest international tourism receipts worldwide from 2019 to 2022 (in billion U.S. dollars)

Global international tourism receipts 2006-2022

International tourism receipts worldwide from 2006 to 2022 (in billion U.S. dollars)

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Inbound tourism visitor growth in Europe 2020-2025, by region

Inbound tourism visitor growth in Europe from 2020 to 2022, with a forecast until 2025, by region

Leading inbound travel markets in Turkey 2019-2023

Leading international travel markets in Turkey from 2019 to 2023, by number of arrivals (in 1,000s)

Leading inbound travel markets in Venice 2019-2023, by number of arrivals

Leading international travel markets in Venice, Italy from 2019 to 2023, by number of arrivals (in 1,000s)

Inbound tourism volume in Spain 2023, by travel reason

Number of international tourists in Spain in 2023, by travel purpose (in 1,000s)

International tourism expenditure in Italy 2010-2022, by type

Total international tourism expenditure in Italy from 2010 to 2022, by type (in billion U.S. dollars)

Forecast change in inbound leisure travel spending worldwide 2024-2033, by country

Forecast percentage change in inbound leisure travel spending in leading destinations worldwide from 2024 to 2033

Leading inbound travel markets in the UK 2023, by growth in travel demand on Google

Leading inbound travel markets in the United Kingdom (UK) over the previous 30 and 90 days as of June 2023, ranked by growth in travel demand on Google

Leading inbound travel markets in France 2023, by Google travel demand growth

Leading inbound travel markets in France over the previous 30 and 90 days as of October 2023, ranked by growth in travel demand on Google

Main inbound travel markets in the Netherlands 2023, by Google travel demand growth

Leading inbound travel markets in the Netherlands over the previous 30 and 90 days as of November 2023, ranked by growth in travel demand on Google

Total contribution of travel and tourism to GDP worldwide 2019-2033

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Global travel and tourism expenditure 2019-2022, by tourist type

Total travel and tourism spending worldwide from 2019 to 2022, by type of tourist (in trillion U.S. dollars)

Leading international travel markets in Greece 2019-2023, by arrivals

Leading inbound travel markets in Greece from 2019 to 2023, by number of arrivals (in 1,000s)

International travel receipts in Greece 2003-2023

Value of international travel receipts in Greece from 2003 to 2023 (in million euros)

Leading inbound travel markets for the UK 2019-2022, by spending

Leading inbound travel markets for the United Kingdom (UK) in 2019 and 2022, by spending (in million GBP)

Leading inbound travel markets in the UK 2019-2022, by number of visits

Leading inbound travel markets for the United Kingdom (UK) in 2019 and 2022, by number of visits (in 1,000s)

Number of inbound international visitors to the U.S. in 2022, by origin

Number of inbound international visitors to the United States in 2022, by country of origin (in millions)

International tourism spending in Italy 2019-2022

International tourism expenditure in Italy in 2019 and 2022 (in billion euros)

International tourism spending in France 2019-2022

International tourism expenditure in France in 2019 and 2022 (in billion euros)

International tourism spending in Europe 2019-2022

International tourism expenditure in Europe in 2019 and 2022 (in billion U.S. dollars)

International tourism spending in Greece 2019-2022

International tourism expenditure in Greece in 2019 and 2022 (in billion euros)

International tourism spending in Belgium 2019-2022

International tourism expenditure in Belgium in 2019 and 2022 (in billion euros)

Leading inbound travel markets in Venice 2019-2023, by overnight stays

Leading international travel markets in Venice, Italy from 2019 to 2023, by number of overnight stays (in 1,000s)

Global travel and tourism expenditure 2019-2022, by type

Total travel and tourism spending worldwide from 2019 to 2022, by type (in trillion U.S. dollars)

Countries in the Americas with the highest inbound tourism receipts 2019-2022

Countries with the highest international tourism receipts in the Americas from 2019 to 2022 (in billion U.S. dollars)

European countries with the highest inbound tourism receipts 2019-2022

Countries with the highest international tourism receipts in Europe from 2019 to 2022 (in billion U.S. dollars)

International tourism spending in Italy Q1 2019-Q4 2023, by origin

Spending of international tourists in Italy from 1st quarter 2019 to 4th quarter 2023, by continent of origin (in million euros)

International travel spending in the U.S. 2019-2026

International travel spending in the United States from 2019 to 2022, with a forecast until 2026 (in billion U.S. dollars)

Travel operators transaction amount from inbound tourism in Japan 2015-2022

Transaction value of travel agencies from inbound tourism in Japan from 2015 to 2022 (in trillion Japanese yen)

Inbound tourism volume in Spain 2023, by origin

Number of international tourists in Spain in 2023, by country of residence (in 1,000s)

Inbound tourism volume in Catalonia 2023, by travel reason

Number of international tourists in Catalonia, Spain in 2023, by main travel purpose (in 1,000s)

Tourism expenditure of international visitors in Japan 2010-2023

Tourism expenditure by inbound visitors to Japan from 2010 to 2023 (in trillion Japanese yen)

Annual inbound tourism expenditure on travel South Korea 1995-2021

Annual total expenditure of inbound tourism on travel to South Korea from 1995 to 2021 (in billion U.S. dollars)

Number of inbound tourists in Malta 2019-2023, by travel purpose

Number of international tourists in Malta from 2019 to 2023, by purpose of travel (in 1,000s)

Distribution of travel and tourism expenditure in Greece 2019-2022, by tourist type

Distribution of travel and tourism spending in Greece in 2019 and 2022, by type of tourist

Distribution of travel and tourism expenditure in Turkey 2019-2022, by tourist type

Distribution of travel and tourism spending in Turkey in 2019 and 2022, by type of tourist

Distribution of travel and tourism expenditure in Europe 2019-2022, by tourist type

Distribution of travel and tourism spending in Europe in 2019 and 2022, by type of tourist

Distribution of travel and tourism spending in Italy 2019-2022, by tourist type

Distribution of travel and tourism spending in Italy in 2019 and 2022, by type of tourist

Distribution of travel and tourism expenditure in France 2019-2022, by tourist type

Distribution of travel and tourism spending in France in 2019 and 2022, by type of tourist

Number of inbound international visitors to the U.S. 2011-2022

Number of inbound international visitors to the United States from 2011 to 2022 (in millions)

International tourism receipts in France 2006-2023

International tourism receipts in France from 2006 to 2023 (in billion U.S. dollars)

Leading inbound travel markets in Florence 2019-2022, by number of arrivals

Leading international travel markets in Florence, Italy from 2019 to 2022, by number of arrivals

Percentage change in inbound tourism spending in Greece 2020-2023, by type

Percentage change in inbound tourism spending in Greece from January 2020 to March 2023, by type of expenditure (compared to 2019)

Percentage change in inbound tourism spending in the U.S. 2020-2023, by type

Percentage change in inbound tourism spending in the United States from January 2020 to March 2023, by type of expenditure (compared to 2019)

Percentage change in inbound tourism spending in France 2020-2023, by type

Percentage change in inbound tourism spending in France from January 2020 to March 2023, by type of expenditure (compared to 2019)

Percentage change in inbound tourism spending in Italy 2020-2023, by type

Percentage change in inbound tourism spending in Italy from January 2020 to March 2023, by type of expenditure (compared to 2019)

Percentage change in inbound tourism spending in the UK 2020-2023, by type

Percentage change in inbound tourism spending in the United Kingdom (UK) from January 2020 to March 2023, by type of expenditure (compared to 2019)

Percentage change in inbound tourism spending in Brazil 2020-2023, by type

Percentage change in inbound tourism spending in Brazil from January 2020 to March 2023, by type of expenditure (compared to 2019)

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Europe will not get a boost from Chinese tourism until 2024

The world is eagerly awaiting the return of Chinese tourists since Covid-19 measures were lifted. But now that Chinese people can travel abroad again, will they be returning to Europe soon? 

Senior Economist, Services and Leisure

Chief Economist, Greater China

Chinese wanderlust on the rise

Chinese people are becoming more and more enthusiastic about travelling. This is evident from the latest Chinese traveller sentiment report from December 2022. Four in ten Chinese respondents said that they would like to go on a trip again. A year earlier, in December 2021, this applied to only two in ten Chinese. Now that Covid-19 restrictions have been fully lifted, the percentage of willing travellers is expected to increase further.

More Chinese people are eager to travel

Attitude of Chinese people towards travel

Jump in visitors from Mainland China to Hong Kong after border reopened

The increasing desire to travel among Chinese people can also be illustrated by two other factors:

• On the day China announced it was lifting all virus restrictions, the booking site Trip.com recorded the highest number of searches for international flights and accommodations in three years.
• The number of Chinese visitors from Mainland China to Hong Kong has soared. On 8 January 2023, the border between Mainland China and Hong Kong reopened. Last year there were only 370,000 visitors from Mainland China to Hong Kong. Since the reopening this year, one million people have crossed the border so far.

There has been a huge jump in Chinese visitors to Hong Kong since the border reopened

Number of visitors from Mainland China to Hong Kong (x 1,000)

European tourism still below 2019 levels

The big question is how soon will Chinese tourists return to Europe again, and what impact will that have on the European tourism industry? Tourism has been hit hard by the Covid-19 pandemic, particularly in 2020 and 2021, with the number of guests in accommodations almost halving. Despite a strong recovery in 2022, the number of tourists in the European Union reached 91% of the pre-pandemic level by the end of 2022. In Italy and Germany, in particular, there were still significantly fewer tourists in 2022 than before the pandemic. In Spain and Belgium, on the other hand, the number of tourists was close to the 2019 level.

Fewer tourists in the EU in 2022 than before the pandemic

Number of  tourists in accommodations in 2022 compared to 2019

Italy is the most popular country in the EU for Chinese visitors

The share of Chinese tourists visiting the European Union each year is marginal, at 1.3%. In 2019, 13 million Chinese tourists came to the EU. Italy is by far the most popular country for Chinese tourists, followed by Spain and Belgium. In 2019, nearly 3.2 million Chinese tourists came to the country of ‘la dolce vita’, accounting for 2.4% of all tourists that year. In the last three years, the proportion of Chinese tourists in Europe has been negligible due to Covid-19.

Share of Chinese travellers out of the total number of travellers in 2019

According to the China Outbound Tourism Research Institute, 18 million Chinese tourists will travel internationally in the first half of 2023, followed by 40 million tourists in the second half. That is about 40% of the number of travellers in 2019. Initially, Chinese people are expected to visit destinations close to home, such as Hong Kong, Macau, Thailand and Singapore. It is not expected that the number of Mainland visitors to Europe will really start to pick up until the summer. There are several reasons for this:

• Just like in the rest of the world, it will take several months for international travel to restart their operations. Not only is there a lack of capacity for international flights, resulting in high ticket prices, but Chinese travellers also face long delays in getting passports and visas.
• Many of them prefer family visits in their own country, as this has not really been possible in recent years.
• Several countries worldwide still have specific travel restrictions related to travel from China. For most European countries, for example, Chinese tourists still need a negative Covid test upon arrival.

While the return of Chinese tourists to Europe will begin around the summer of 2023, we expect the real boost for European tourism to take place in 2024.

Chinese Tourists Plan Fewer Trips to Europe in 2024

Dawit Habtemariam , Skift

February 6th, 2024 at 2:23 PM EST

European destinations need to come up with new strategies to attract Chinese tourists.

Dawit Habtemariam

Europe may not see a tourism comeback from one of its key source markets: China. Chinese interest in traveling to Europe has dropped, according to a survey released Tuesday by the European Travel Commission.

Only about 57% of Chinese tourists surveyed said they intend to travel to Europe in 2024 – that’s down from 71% in 2023, according to the European Travel Commission.

One of the drivers for the decline was a preference among Chinese to travel within Asia .  The preference comes as several Southeast Asian destinations relax their visa policies. Thailand and China, for example, agreed on a permanent visa waiver this year.  

Destinations with simplified visa procedures have a distinct advantage with Chinese tourists, said Boon Sian Chai, managing director and vice president of international markets for Trip.com, at Skift’s Global Forum East in December.

Chinese tourists also cited financial concerns and limited vacation time as why they aren’t planning to travel to Europe.

Europe Needs Tourism from China

Before the pandemic, China was a vital tourism market for multiple European destinations. For the UK and Netherlands, for example, it was a top source market.

 “China has been our most important source market from Asia and that is only at 50% of pre-Covid levels,” said Jos Vranken, managing director of Netherlands Board of Tourism and Conventions , in December.

In the UK, Chinese tourists were the second-highest spenders behind Americans before the pandemic, said VisitBritain CEO Patricia Yates.

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• Return of Chinese tourists helps vitalize Europe's tourism market, economy
• Firms confident in bilateral bonds

Deepening tourism cooperation between China and Europe will help vitalize the continent's economy, as tourism is one of its pillar industries.

Figures from travel agencies show that tour products to Europe have become hot sellers since early 2023 after China loosened outbound travel restrictions following the pandemic.

Traditionally popular European destinations such as France, Spain and Greece remain top choices for Chinese travelers, while "niche "destinations like Serbia and Montenegro have also become trendy.

READ MORE: Beijing, Paris to forge stronger ties

"Some European destinations including Athens, Berlin, Milan and Zurich have seen an upsurge in searches on our platform recently," said online travel agency Qunar.

For example, from April 22 to 28, searches for tour products to Athens nearly tripled, while searches for Berlin-related products almost quadrupled compared with the previous week.

Qi Chunguang, vice-president of Tuniu, said that destinations in Central and Eastern Europe have also lured more Chinese travelers because of lower costs and more friendly visa policies.

"A continuous trip to Austria, Czech Republic and Hungary usually costs 25,000 yuan ($3,500) to 30,000 yuan per person during summer time, while a trip to the United Kingdom and Ireland costs nearly 40,000 yuan per person over the summer," he said. "Also, adding direct flights from China to destinations in Eastern Europe and more convenient visa application procedures make Central and Eastern Europe more attractive."

Tourism industry insiders said that Europe delights in seeing more Chinese travelers, who will inject life into the continent's economy and help boost tourism-related employment.

Data analysis company Statista — founded in Hamburg, Germany — said the total contribution of travel and tourism to Europe's GDP was around $2.1 trillion in 2019, the year before the pandemic hit, while that dropped to around $1.9 trillion in 2022.

Travel and tourism account for a great share of some economies in Europe — for example, 24.8 percent of Croatia's GDP came from travel and tourism in 2019, according to Statista.

ALSO READ: Holiday travels bolster world tourism industry

Sandra Carvao, chief of tourism market intelligence and competitiveness at the World Tourism Organization, told People's Daily in a recent interview that China is one of the world's largest sources of travelers, so the recovery of China's tourism market is key to Europe's tourism industry development.

Eduardo Santander, executive director of the European Travel Commission, told People's Daily that destinations in Europe have made great efforts to attract Chinese travelers, such as deepening cooperation with China's airline companies and organizing tourism exhibitions in China.

He said China had been the second largest source of travelers to Europe before the pandemic, and he hopes to see a growing number of Chinese travelers come to the continent this year.

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Loss of Chinese tourists forces Europe’s luxury retailers to rethink

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Yuan Yang in Bicester and Paris, Oliver Barnes in London, Akila Quinio in Paris

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

On a train through the English countryside, a woman’s voice speaking Mandarin Chinese announces Bicester Village, a designer outlet centre near Oxford. There, Chinese-speaking staff stand ready in luxury fashion stores from Burberry to Tory Burch. But among the shoppers, the language is no longer often heard.

Chinese tourists, once the biggest driver of luxury sales, have almost disappeared from European high streets since the closure of China’s borders in 2020. With no clear date for their return, retailers are having to come up with new tactics.

Rather than selling easy-to-grab items to fast-moving tourists, sales teams are having to slow down and personalise their services for pickier locals.

It is a dramatic transition for a sector that previously concentrated on catering for Chinese tourists. In the decade before Covid hit, Chinese consumers became by far the world’s biggest spenders on luxury goods , making one-third (€93bn) of global sales, according to consultancy Bain. But they only made one-third of those purchases within China.

They made the rest on trips abroad, particularly in Europe. Chinese shoppers felt buying from European flagship stores was more authentic, and it was also much cheaper: they could shop tax-free using European rebates.

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As a result, Chinese tourists became the highest per-capita luxury spenders among all travellers, accounting for two-thirds of the sector’s sales in Europe before Covid.

“It was on steroids before the pandemic,” said Achim Berg, global leader of consultancy McKinsey’s luxury group.

In the UK in 2019, people from China made up only 5 per cent of non-EU visitors to the UK, according to VisitBritain, the country’s tourism board. But they accounted for 32 per cent of all tax-free shopping, according to data from Global Blue, a tourism shopping tax refund company.

“Retailers really defined the shopping experience around Chinese tourists,” said Claudia D’Arpizio, Bain’s global head of fashion and luxury. Not only did retailers hire Chinese-speaking staff, they focused stock displays on the products favoured by Chinese buyers, particularly bags, which could be quickly picked up by a traveller in a rush, as opposed to clothing, which needs to be tried on.

Jingjing Zhou, a sales assistant in Paris department store Galeries Lafayette, was one of those recruited before 2020. “It was the best time to enter the sales industry,” Zhou said. “Very few Europeans learn Chinese, so as an overseas student you could get hired, make great sales, then get a permanent contract. Nowadays, it’s not so easy for my friends to get into this industry.”

The biggest stalls in Galeries Lafayette, from LV to Longchamp, all have at least one Chinese speaker on duty, but these days Zhou mostly uses her French. In the first quarter of 2022, just 200,000 Chinese people travelled outside of Greater China, one-hundredth as many as in the same period in 2019, according to the China Outbound Tourism Research Institute.

While luxury groups like LVMH strongly grew their overall revenues during the pandemic through sales in China, they have had to change tactics at their European stores to court more local buyers.

“It’s pretty expensive for sure. All that money spent in training, because the whole shopping experience has changed,” said D’Arpizio.

A recent surge in Middle Eastern tourists, as well as US visitors buoyed by the strong dollar , has helped fill stores. Eduardo Santander, CEO of the European Travel Commission, said the lack of Chinese tourists left the many luxury retailers that relied heavily on them with “a huge feeling of loss”, but had spurred “a huge effort to diversify”.

Retailers have personalised their services. During Europe’s Covid lockdowns, shop assistants contacted customers via WhatsApp with tailor-made recommendations. Berg sees a “possible return to the old idea of service and store management from the 1990s, the little black book with all the customers’ addresses and preferences in it”.

“You have to do much more to attract local customers,” Berg said. “They can come back, they have more time to spend, versus an international customer that was determined and straightforward.”

Zhou said local shoppers at Galeries Lafayette were “detail-oriented”. “Chinese tourists are more happy-go-lucky in making purchases,” she said.

Industry analysts expect Chinese tourism spending to return to pre-Covid levels by 2025, but such predictions depend on a softening of Beijing’s commitment to its tough “zero-Covid” policy.

And Chinese buyers are unlikely to be as dominant a force in European high streets as they were in 2019. Instead, much of their purchasing power looks set to stay at home.

During the pandemic, Chinese consumers’ luxury purchases swung from being made 70 per cent abroad to 70 per cent in China, according to Yaok Group, a Shanghai-based high-end lifestyle consultancy.

“After Covid, we forecast that the tourist armies will return, with a bounceback in ‘revenge spending’,” said Ting Zhou, founder of Yaok Group. “But in the long run, it will not go back to 70-30. More like 60-40.”

To adjust, luxury retailers are expanding their local presence in China.

“The next step is digging down into the next-tier cities, outside of Beijing and Shanghai,” said Zhou. After closing down a Paris annex built for Chinese shoppers, Galeries Lafayette is planning to open its first Shenzhen store in 2023.

China-based retail sales fell in the second quarter of this year because of a series of harsh lockdowns in Shanghai and Beijing. But in the medium term, forecasts show Chinese consumers’ overall dominance of the global luxury market growing.

In 2020, the Chinese mainland was the only luxury market in the world to expand year-on-year, according to Bain. And the portion of global sales made to Chinese nationals hit 46 per cent in 2021, said Zhou. “In their heart, China is the market luxury groups will not let go of,” she said.

Additional reporting by Nian Liu in Beijing

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The Complete Guide to Winning Over Chinese Tourists in Europe

Locaria > Insights > Blog > Company > The Complete Guide to Winning Over Chinese Tourists in Europe

Tuesday November 26, 2019 - Posted by: Sarah Wang

Over the past decade, there has been an increase in Chinese tourism to the West. After Asia, Europe is the second most popular continent for Chinese tourists to visit, with France leading the way as the top holiday destination for Chinese travellers.

As tourism from China continues to increase, we wanted to explore why Chinese tourists are choosing Europe as a prime holiday destination and how brands can appeal to Chinese holiday-makers.

What’s driving the growth in Chinese tourism to Europe?

This growth in tourism from China is primarily driven by its booming economy and the exponential increase in the spending power of the Chinese middle-class. In 2002, China’s middle-class comprised only 4% of its population, whereas they made up over 30% in 2018 . The nation’s middle-class is set to further expand from 430 million people to 780 million in the mid-2020s. Urban households in China (where most of the middle class is concentrated), spend about 20 trillion yuan annually (just over $2.8 trillion in dollars), almost equivalent to the average spend of a Japanese household.

Along with this explosion in the middle class’ purchasing power, the Chinese appetite for foreign travel is growing. According to a Mintel study,  81 per cent of Chinese consumers show an interest in fresh experiences , such as buying a product they have never bought before or travelling to a new holiday destination.

Granted, overall only 10% of people in China own passports which is low in comparison to other countries . But in a country with 1.4 billion people, in absolute numbers, this is a huge market. It is predicted that by 2020 there will be 240 million passport holders and 220 million Chinese people travelling worldwide, which presents lucrative prospects for foreign countries trying to appeal to Chinese spenders.

European governments are keen to capitalise on the boost that Chinese tourism could give their economies, with the European Commission and European Travel Commission co-launching the 2018 EU-China Tourism Year to promote Europe as a holiday destination. In 2018 more than 2.8 million Schengen visas were issued to Chinese tourists to travel to Europe.

How Chinese tourists spend their money

Looking at spending, more recently, China overtook America for total tourist spending . To compare how fast Chinese tourism has grown worldwide, in the year 2000 Chinese tourists only spent $10 billion overseas and in comparison, by 2018, Chinese tourists spent $277.3 billion overseas .

Culturally, Chinese tourists differ from Western tourists in that they mostly travel in groups to discover Europe, generally visiting three or four countries per stay. Although individual travels and customised itineraries are increasing, 42% of Chinese travellers to Britain were part of a tour group. Most Chinese tourists stayed in the UK for between eight to ten days and spent roughly 10,000 yuan ($1,589) each while in the country. Across the pond in America, the Chinese make up the fifth-largest bloc of tourists visiting the USA and tend to spend an average of $7,000 per trip , which is about 50% more than the average international traveller to USA.

As we outlined before , Chinese consumers are increasingly seeking out “richer experiences and quality of life.”  Luxury retailers relying on tourist spending are benefiting significantly from the boom in Chinese tourism, as Chinese tourists spend most of their travel budget on shopping, followed by accommodation and catering.

How brands can attract Chinese tourists

If a brand wants to succeed in China, it cannot adopt a one size fits all approach and must factor in specific cultural and market nuances.

Chinese consumers are “ very much content-driven ” and more likely to follow and engage with brands whose content demonstrates values and beliefs that resonate with Chinese consumers and understand their expectations. For instance, when localising into China, businesses need to consider how things such as their brand names or general marketing content will translate into copy that will not only work in the Chinese language but across local dialects as well.

Brands should look beyond direct translations of copy into Mandarin or Cantonese and focus on localisation. Retailers need to research the target audience and invest in expert services to ensure the content is fully relevant and appropriate. Chinese consumers are more likely to connect with retailers that present a compelling brand message and provides content that elicits an emotional reaction. 

Brands need to consider that in China, the digital channels and platforms used to connect with their customers are completely different from those in the West. Google, Facebook, Twitter and YouTube are all blocked,  and consumers in China generally use Baidu for web search, WeChat and Weibo for social media, and Youku for video. European businesses need to use these platforms to attract  Chinese customers.

Many retailers are also expanding their point of sale and payment options to include Chinese mobile payment apps like Alipay and Wechat Pay to accommodate for Chinese spending habits.

Chinese tourism looks set to significantly increase in the next decade, which holds enormous potential for European business. China is a unique market that presents its own set of challenges to consider, but marketing to Chinese tourists could prove to be highly lucrative.

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Return of Chinese tourists helps vitalize Europe's tourism market, economy

Deepening tourism cooperation between China and Europe will help vitalize the continent's economy, as tourism is one of its pillar industries.

Figures from travel agencies show that tour products to Europe have become hot sellers since early 2023 after China loosened outbound travel restrictions following the pandemic.

Traditionally popular European destinations such as France, Spain and Greece remain top choices for Chinese travelers, while "niche "destinations like Serbia and Montenegro have also become trendy.

"Some European destinations including Athens, Berlin, Milan and Zurich have seen an upsurge in searches on our platform recently," said online travel agency Qunar.

For example, from April 22 to 28, searches for tour products to Athens nearly tripled, while searches for Berlin-related products almost quadrupled compared with the previous week.

Qi Chunguang, vice-president of Tuniu, said that destinations in Central and Eastern Europe have also lured more Chinese travelers because of lower costs and more friendly visa policies.

"A continuous trip to Austria, Czech Republic and Hungary usually costs 25,000 yuan ($3,500) to 30,000 yuan per person during summer time, while a trip to the United Kingdom and Ireland costs nearly 40,000 yuan per person over the summer," he said. "Also, adding direct flights from China to destinations in Eastern Europe and more convenient visa application procedures make Central and Eastern Europe more attractive."

Tourism industry insiders said that Europe delights in seeing more Chinese travelers, who will inject life into the continent's economy and help boost tourism-related employment.

Data analysis company Statista — founded in Hamburg, Germany — said the total contribution of travel and tourism to Europe's GDP was around $2.1 trillion in 2019, the year before the pandemic hit, while that dropped to around $1.9 trillion in 2022.

Travel and tourism account for a great share of some economies in Europe — for example, 24.8 percent of Croatia's GDP came from travel and tourism in 2019, according to Statista.

Sandra Carvao, chief of tourism market intelligence and competitiveness at the World Tourism Organization, told People's Daily in a recent interview that China is one of the world's largest sources of travelers, so the recovery of China's tourism market is key to Europe's tourism industry development.

Eduardo Santander, executive director of the European Travel Commission, told People's Daily that destinations in Europe have made great efforts to attract Chinese travelers, such as deepening cooperation with China's airline companies and organizing tourism exhibitions in China.

He said China had been the second largest source of travelers to Europe before the pandemic, and he hopes to see a growing number of Chinese travelers come to the continent this year.

Europe Readies To Welcome Back Chinese Tourists, But Hurdles Remain

Europe will likely have to wait until the second half of 2023, or early 2024, to see a large-scale return of Chinese tourists. Before then, many operational hurdles need to be overcome, including resuming more direct flights, accelerating the visa application process and rehiring tourism personnel to cater to the anticipated influx of visitors.

In 2019, before the pandemic, nearly 10 million Chinese tourists visited the EU with inbound revenue worth 12.2 billion, according to World Travel & Tourism Council data. The same year, Chinese travelers made 166 million overseas trips, spending 255 billion abroad, according to the World Tourism Organization, making China the world's largest outbound tourism market.

Waiting for the rebound #

“The recovery of Chinese outbound travel isn’t going to be a case of press-and-play and outbound tourism goes back to the 2019 ‘normal,’” says Gary Bowerman, Asia travel and consumer trends analyst and director of the consultancy Check-in Asia. “In many ways, the Chinese market to Europe needs to rebuild almost from scratch after three years, and this will take time.”

Once resources are put in place, travel experts say Chinese visitors will initially likely favor major cities in established areas, followed by new and “smaller” destinations, with demand for countries such as Serbia, Albania and Georgia rising.

Many variables that were not relevant in 2019 now need to be considered. These include how quickly flight services can be scaled up, how soon flight prices decline, as well as the ease of obtaining visas and the extent to which destinations market themselves, Bowerman added.

Scaling up resources #

Another downside is that some European tourism boards have allocated little, or no, budget for the China market in the first half of 2023, he says.

“They are concentrating on the markets from which visitors helped them rebuild their tourism economies in 2021 and 2022, until they have a clearer understanding of outbound demand from China,” Bowerman says. “Outbound travel from China is likely to pick up in the second half of 2023 and could be stronger in the fourth quarter. However, this year will be one for building the foundations of a longer term recovery.”

One reason why the recovery of China's outbound tourism will take time is that many Chinese outbound travel experts, both in China and travel destinations, lost their jobs or were given other responsibilities as there was nothing for them to do for three years, said Wolfgang Arlt, director of the Hamburg-based China Outbound Tourism Research Institute.

“Therefore, a lot of expertise and experience stored in the heads of these persons was lost, and new people have yet to learn anew what is important in this business,” he says.

Richard Adam, an international council member of the World Tourism Forum Institute, says: “Like in most other established destinations, European service providers are still challenged by post-COVID-19 consequences and are unable to fully re-staff to previous levels, and they still have reduced flight capacity.

The recovery of Chinese travelers will first occur in established “honey pots,” then in second-tier cities in established areas, and thirdly in completely new destinations in unchartered territory, he adds.

According to Chinese multinational online travel company Ctrip’s early booking data for the May holiday, the only top-10 destination among Chinese travelers heading to Europe is London (ranked sixth), though it is still too early to determine the full picture, travel analysts say, especially as many people might be waiting to see if they can get visas in time.

Sienna Parulis-Cook, director of marketing and communications at Dragon Trail International, says: “Before COVID-19, it took around two days to get a visa to Europe for applicants in China. Now, the waiting period is two months. When European countries improve the capabilities of their visa services in China, this will really help with tourism recovery.”

“Before COVID-19, it took around two days to get a visa to Europe for applicants in China. Now, the waiting period is two months."

A recent Bloomberg Intelligence survey showed that nearly 92 percent of 1,088 Chinese respondents were considering at least one domestic or international trip by May. Chinese residents seem to be as enthusiastic about overseas travel as they are about domestic trips. More than 92 percent of respondents planning a holiday over the next three months were considering at least one overseas trip, the survey found.

Parulis-Cook says: “Europe could hope to see a significant return of Chinese tourists by the second half of 2023, especially during the October Golden Week holiday. But the recovery depends on a few different factors. One is the policy regarding group tours and package travel. Group tourism was still very important for the Chinese market to Europe before the pandemic, and it’s hard to imagine that traveler numbers could really recover without it.”

New destinations #

From February 6, the Chinese government permitted travel agencies to restart outbound group travel for Chinese citizens to 20 nations, and an additional 40 countries were added on March 15. Pundits believe the group tourism list will be increased in the coming months, which will help airlines plan their route strategies. However, as independent travelers are able to visit all European countries and the EU is phasing out its restrictions on Chinese visitors, the pilot program is likely to become less relevant as the year progresses.

Chinese travelers’ preferences for Europe were changing before the pandemic. In the run up to the pandemic, Southeast Europe experienced a boom in Chinese tourism because of favorable visa policies and its appeal as a fresh European destination.

Serbia saw Chinese visitors surge after a mutual visa-free policy took effect in January 2017. From 2012 to 2019, the number of Chinese tourists visiting Serbia increased 30 times, according to the country’s president, Aleksandar Vučić. Experts say several countries would likely want to follow Serbia’s lead of offering visa-free access for Chinese tourists, which was a very successful initiative.

“I would expect tourism to return strongly to Croatia, Serbia, Montenegro, Bosnia-Herzegovina, and Slovenia, and to spread out to neighboring countries. Albania especially stands to benefit from its visa-free policy for Chinese citizens and its border with Montenegro,” Parulis-Cook says.

Arlt echoed the view, saying: “Albania has a long friendship with China and offers visa-free entry. It has also very authentic nature and rural culture, but also a vibrant nightlife in the capital Tirana and along the beaches. Georgia is among the top-10 countries exporting wine to China, and it has a lot of good food and drinks to offer as well as an interesting mixture of European and Asian culture and buildings.”

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Europe awaits return of Chinese tourists after pandemic

Xinhua | Updated: 2023-04-16 07:04

BRUSSELS - After three years of job switchings, Slovenian tour guide Luka is eagerly anticipating the arrival of the first group of tourists from China as now the situation of the COVID-19 pandemic has improved a lot.

As one of the few registered Chinese-English tour guides in Slovenia, Luka is warming up his spoken Chinese, as droves of tourists from China are expected to arrive for the summer holidays.

In 2019, 13 million Chinese tourists landed in the European Union (EU) member states, according to a report by the Brussels-based European Travel Commission (ETC).

This number has plunged since the pandemic, till the reopening of European countries and the relaxation of China's outbound travel restrictions.

At the beginning of this year, China resumed its outbound travel business. Currently, China allows group tours to 60 countries.

In late March, Hungary welcomed its first group of Chinese tourists after three pandemic years. The 22 Chinese visitors, who arrived in the country for a nine-day stay there, were greeted by Hungarian government officials at the Budapest Airport.

"This is my third visit to Hungary," said Lou Zhiyuan, 60, who flew in from China's Guangzhou city and had just retired. She signed up for the tour group immediately when the possibility opened up. She last visited Hungary eight years ago.

European tourism was badly hit by the COVID-19 pandemic and is expected to recover speedily with the return of Chinese tourists.

Chinese tourists made 22.2 million overnight stays in the EU in 2019. Due to the pandemic, this number fell to 3 million in 2020 and declined further to 1.6 million in 2021, according to the EU's statistical office Eurostat.

Before the pandemic, Croatia welcomed more than 300,000 visitors from China per year. "We will do everything in our power to facilitate the arrival and stay of Chinese tourists in Croatia," Kristjan Stanicic, director of the Croatian National Tourist Board, told Xinhua.

Direct flights between Athens and Shanghai were also launched in December 2022, after the direct flights between Athens and Beijing commenced in 2017.

"We are a Chinese-ready airport," said Ioanna Papadopoulou, director of communication and marketing at Athens International Airport (AIA), where virtual assistants help Chinese tourists with information in their own language. They can also use familiar methods of payment which they use back home at AIA's duty-free shops.

According to the ETC, Chinese tourists are still rare in France, although it was the most popular destination for them outside Asia before the pandemic.

In 2019, more than 2.4 million Chinese visited France, and Chinese tourists spent around 180 euros ($199.7) per day there, the ETC said.

"We have seen a significant increase in the number of our Chinese customers," Ms. Wang, owner of the New Shanghai restaurant near the Palace of Versailles southwest of Paris, told Xinhua.

Not far away, the line of tourists waiting for entering the Palace stretches for nearly 100 meters, but only a few of them are Asian, mostly from Japan and South Korea.

"After three years of pandemic life, Chinese travel agencies have lost contact with Europe's hotels and car rental agencies. In the short term, it is difficult to return to the preferential prices we could offer them before the pandemic," Liu Yuan, a tour guide operator in France, told Xinhua.

But for Luka, at least he could count on the returning Chinese tourists for a much more stable job.

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Chinese Tourists in Europe: a Difficult Time

March 18, 2020 •

4 min reading

Demand shocks and tourism

The global tourism industry could not have been hurt so badly any time in history other than the year 2019−20. The tourism industry involves temporary displacement of people from one place to another, whereby demand is generated. Thus, any factor that impedes tourist flow will cause a negative demand shock in the industry one way or another. The impact on tourism demand depends on the nature of the shock as well as how long it persists.

We have seen a couple of grave demand shocks in this century already, far back to the 9/11 terrorist attacks in 2001, followed by SARS in 2003 and then by the 2007−08 financial crisis. In the aftermath of 9/11, passenger flights in the United States dropped by 35% in around two months which took almost one year to recover from; during SARS, tourist arrivals in Hong Kong plummeted by 75%; amid the financial crisis, the U.S. hotel industry fell to a record low occupancy of 54%.

Chinese outbound tourism

What makes the year 2019-20 unprecedented in the global economy and, in particular tourism, is the spate of incidents coming one after another, namely the US-China trade war, the Hong Kong protests and the novel coronavirus outbreak.

More worrisome, is the fact that there is no sign of the triple whammy ending anytime soon. According to Tourism Economics (an Oxford tourism research firm), the growth of Chinese outbound tourism has been stagnating since 2010, declining annually from 25% to 2%. It comes as no surprise then that Chinese outbound tourism is due to hit a record low in terms of both departures and expenditure in 2020. In the long run, the stagnation may persist, or alternatively, Europe and North America may displace Hong Kong and other Southeast Asian destinations, which have been accommodating around 80% of Chinese tourists since 2000, as the dominant destinations.

In the short run, hotel occupancy and ADR has been dropping substantially and simultaneously in Chinese outbound destinations, due to the severe demand shocks since June 2019.

In Asia, RevPAR (revenue per available room) declined nearly 4% against that in 2018, due precisely to both the lower ADR and lower occupancy. However, the impact was by no means evenly distributed across all destinations. Those relying on the Chinese market, notably Hong Kong, Thailand, Japan, Korea, Australia and New Zealand were among the most affected.

Since Mainland Chinese account for nearly 80% of Hong Kong inbound tourism, hotel ADR and occupancy in Hong Kong declined substantially from June 2019 when the Hong Kong protests began.

In 2019, RevPAR in Hong Kong dropped by 26% compared to 2018, which is truly disappointing for the industry because the Chinese market would otherwise have grown. The hotel performance in Hong Kong may well continue to fall throughout 2020 as the protests are still sporadically on-going, coupled with the coronavirus outbreak and the trade war.

As mentioned earlier, while the Chinese market is stagnating and could continue to decline for years to come, there is a redistribution of the market in the post-crisis era. Namely, Chinese outbound tourism may gradually divert to Europe and North America as long-haul destinations, and South Korea and Japan in Asia as short-haul destinations.

This could occur for a couple of reasons. Firstly, Chinese demand is most likely to divert away from Hong Kong during 2020, not in the short run but in the long run because of the antagonism and political sensitivities between Hong Kong and the mainland cannot be eradicated quickly. Secondly, Hong Kong has been the gateway for Chinese tourists to the outside world for the past two decades, such a role becomes will become less and less important, although still necessary. Thirdly, all things being equal, the supply abundance in the substitute destinations mentioned above would not only make tourism accessible but also affordable, the same advantage that Hong Kong possesses.

Globalization, services trade and Chinese inbound tourism

Thanks to China’s transition to the market economy in the early 1980s and their adherence to the WTO in 2001, it has experienced almost 40 years of robust economic growth, thereby propelling domestic consumption and outbound tourism for decades. Unfortunately, the trade war has undermined economic growth in China, thereby leading to a shrink of consumption, particularly tourism. As a matter of fact, the globalization of the Chinese economy after entering the WTO has benefited the manufacturing industry, and hence the export of goods, but not of services.

On the contrary, the Chinese service industry, including tourism, hospitality and a wide range of auxiliary services that facilitate people to travel across the country, is far less competitive than one might think. On the one hand, this explains the surge in outbound tourism consumption since 2008 which amounted to US$277 billion in 2018, and on the other hand, the perpetual plight of Chinese inbound tourism, namely tourism exports. China may, for the first time since 2000, be running a current-account deficit largely due to the astronomical outbound tourism spending, yet insignificant inbound tourism spending.

If supply shrinks in the long term due to the pessimistic outlook of the world economy and Chinese economy in particular, then the tourism industry will inevitably experience a recession due to the contraction of supply. Even if supply capacity can be resumed and built up, the challenge for tourism and the service industry as a whole is great. Besides fixed investment in the industry, it takes time and dedication to build a service-oriented culture, which many developing countries, including China, have yet to accomplish despite the fact that services make up an increasing proportion of their GDP.

The fact is that a service culture deeply rooted in the economy represents the very competitiveness of tourism and hospitality. Unfortunately, at a time of economic hardship, probably the only course of action that businesses in these countries can take is to scrap services because the opportunity cost of cutting services off in a service-scarce economy is inappreciable. Such expediency, however, hurts the industry in the long run just as it hurts consumers in the short run.

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Outlook for China tourism 2023: Light at the end of the tunnel

China is now removing travel restrictions rapidly, both domestically and internationally. While the sudden opening may lead to uncertainty and hesitancy to travel in the short term, Chinese tourists still express a strong desire to travel. And the recent removal of quarantine requirements in January 2023 could usher in a renewed demand for trips abroad.

Domestically, there are already signs of strong travel recovery. The recent Chinese New Year holidays saw 308 million domestic trips, generating almost RMB 376 billion in tourism revenue. 1 China’s Ministry of Culture and Tourism. This upswing indicates that domestic travel volume has recovered to 90 percent of 2019 figures, and spending has bounced back to around 70 percent of pre-pandemic levels. 2 McKinsey analysis based on China’s Ministry of Culture and Tourism data.

This article paints a picture of Chinese travelers and their evolving spending behaviors and preferences—and suggests measures that tourism service providers and destinations could take to prepare for their imminent return. The analyses draw on the findings of McKinsey’s latest Survey of Chinese Tourist Attitudes, and compare the results across six waves of surveys conducted between April 2020 and November 2022, along with consumer sentiment research and recent travel data.

From pandemic to endemic

By January 8, 2023, cross-city travel restrictions, border closures, and quarantine requirements on international arrivals to China had been lifted. 3 “Graphics: China’s 20 new measures for optimizing COVID-19 response,” CGTN, November 15, 2022; “COVID-19 response further optimized with 10 new measures,” China Services Info, December 8, 2022; “China reopens borders in final farewell to zero-COVID,” Reuters, January 8, 2023. This rapid removal of domestic travel restrictions, and an increase in COVID-19 infection rates, likely knocked travel confidence for cross-city and within-city trips. Right after the first easing of measures, in-city transport saw a marked drop as people stayed home—either because they were ill, or to avoid exposure. Subway traffic in ten major cities in mainland China fell and then spiked during Chinese New Year in February. Hotel room bookings also peaked at this time.

Domestic airline seat capacity experienced a minor rebound as each set of restrictions was lifted—suggesting a rise in demand as airlines scheduled more flights. Domestic capacity fluctuated, possibly due to the accelerated COVID-19 infection rate and a temporary labor shortage. International seat capacity, however, continued to climb (Exhibit 1).

By Chinese new year, China was past its infection peak—and domestic tourism recovered strongly. For instance, Hainan drew 6.4 million visitors over Chinese New Year (up from 5.8 million in 2019) and visits to Shanghai reached 10 million (roughly double 2019 holiday figures). 4 China’s Ministry of Culture and Tourism. Overall, revenue per available room (RevPAR) during this period recovered and surpassed pre-pandemic levels, at 120 percent of 2019 figures. 5 STR data. Outbound trips are still limited, but given the pent-up demand for international travel (and the upswing in domestic tourism) the tourism industry may need to prepare to welcome back Chinese tourists.

Tourism players should be ready for this; the time to act is now.

A demand boom is around the corner—Chinese tourists are returning soon

Before the pandemic, Chinese tourists were eager travelers. Mainland China had the largest outbound travel market in the world, both in number of trips and total spend. 6 World Tourism Organization (UNWTO) Tourism dashboard, Outbound tourism ranking. In 2019, Mainland Chinese tourists took 155 million outbound trips, totaling $255 billion in travel spending. 7 China’s Ministry of Culture and Tourism. These figures indicate total outbound trips, including to Hong Kong and Macau. China is also an important source market for some major destinations. For instance, Chinese travelers made up 28 percent of inbound tourism in Thailand, 30 percent in Japan, and 16 percent of non-EU visitors to Germany. 8 United Nations World Tourism Organization (UNWTO) database.

Leisure travel was the biggest driver of China’s outbound travel, representing 65 percent of travelers in 2019. In the same year, 29 percent of travelers ventured out for business, and 6 percent journeyed to visit friends and relatives. 9 Euromonitor International database.

Our most recent Survey of Chinese Tourist Attitudes, conducted in November 2022, shows that Chinese tourists have retained their keen desire to explore international destinations. About 40 percent of respondents reported that they expect to undertake outbound travel for their next leisure trip.

Where do these travelers want to go?

The results also indicate that the top three overseas travel destinations (beyond Hong Kong and Macau) are Australia/New Zealand, Southeast Asia, and Japan. Overall, respondents show less interest in travel to Europe than in previous years, down from 7 percent to 4 percent compared to wave 5 respondents. Desire to embark on long-haul international trips to Australia/New Zealand increased from 5 percent to 7 percent, and North American trips from 3 percent to 4 percent since the last survey. The wealthier segment (monthly household income over RMB 38,000) still shows a high interest in EU destinations (13 percent).

There are stumbling blocks on the road to recovery

While travel sentiment is strong, other factors may deter travelers from taking to the skies: fear of COVID-19; the need for COVID-19 testing which can be expensive; ticket prices; risk appetite of destination countries; and getting a passport or visa.

Chinese travelers may favor domestic trips, even if all outbound travel restrictions are removed, until they feel it is safe to travel internationally. A COVID-19-safe environment in destination countries will likely boost travelers’ confidence and encourage them to book trips again. 10 “Long-haul travel barometer,” European Travel Commission, February 1, 2023.

Travel recovery is also dependent on airline capacity. Some international airlines might be slow to restore capacity as fleets were retired during COVID-19 and airlines face a shortage of crew, particularly pilots. Considering that at the time of writing, in April 2023, international airline seat capacity has only recovered to around 37 percent of pre-pandemic levels, travelers are likely to face elevated ticket prices in the coming months. For instance, ticket prices for travel in the upcoming holidays to popular overseas destinations such as Japan and Thailand are double what they were in 2019. 11 Based on Ctrip prices. Price-sensitive travelers might wait for ticket prices to level out before booking their overseas trips.

Chinese airlines, however, appear more ready to resume full service than their international counterparts —fewer pilots left the industry and aircraft are available. Chinese carriers’ widebody fleets are mostly in service or ready to be redeployed (Exhibit 2).

Moving forward, safety measures in destination countries will affect travel recovery. Most countries have dropped testing requirements on arrivals from mainland China, and Chinese outbound group travel has resumed but is still limited to selected countries.

Many Chinese travelers—maybe 20 percent—have had passports expire during the COVID-19 period, and China has not been renewing these passports. Renewals are now possible, but the backlog will slow travel’s rebound by a few months. 12 Steve Saxon, “ What to expect from China’s travel rebound ,” McKinsey, January 25, 2023. Furthermore, travel visas for destination countries can take some time to be processed and issued.

Taken together, these factors suggest that the returning wave of Chinese travelers may only gather momentum by the Summer of 2023 and that China’s travel recovery will likely lag Hong Kong’s by a few months.

Overall, China is opening up to travel, both inbound and outbound—all types of visas are being issued to foreign visitors, and locals are getting ready to travel abroad. 13 “China to resume issuing all types of visas for foreigners,” China Briefing, March 14, 2023.

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The returning chinese traveler is evolving.

Although Chinese travelers did not have opportunities to travel internationally over the past three years, they continued to travel domestically and explore new offerings. Annual domestic trips remained at around 50 percent of pre-pandemic levels, amounting to 8.7 billion domestic trips over the past three years. 14 China’s Ministry of Culture and Tourism. During this time, the domestic market matured, and travelers became more sophisticated as they tried new leisure experiences such as beach resorts, skiing trips, and “staycations” in home cities. Chinese travelers became more experienced as thanks to periods of low COVID-19 infection rates domestically they explored China’s vast geography and diverse experiences on offer.

Consequently, the post-COVID-19 Chinese traveler is even more digitally savvy, has high expectations, and seeks novel experiences. These are some of the characteristics of a typical traveler:

• Experience-oriented: Wave 6 of the survey shows that the rebound tourist is planning their trip around experiences. Outdoor and scenic trips remain the most popular travel theme. In survey waves 1 to 3, sightseeing and “foodie” experiences were high on the list of preferences while traveling. From waves 4 to 6, culture and history, beaches and resorts, and health and wellness gained more attention—solidifying the trend for experience-driven travel. Additionally, possibly due to the hype of the Winter Olympics, skiing and snowboarding have become popular activities.
• Hyper-digitized: While digitization is a global trend, Chinese consumers are some of the most digitally savvy in the world; mobile technologies and social media are at the core of daily life. COVID-19 drove people to spend more time online—now short-form videos and livestreaming have become the top online entertainment options in China. In the first half of 2022, Chinese consumers spent 30 percent of their mobile internet time engaging with short videos. 15 “In the first half of the year, the number of mobile netizens increased, and short videos accounted for nearly 30% of the total time spent online,” Chinadaily.com, 27 July 2022.
• Exploration enthusiasts: Chinese travelers are also keen to explore the world and embark on novel experiences in unfamiliar destinations. Survey respondents were looking forward to visiting new attractions, even when travel policies limited their travel radius. Instead of revisiting destinations, 45 percent of respondents picked short trips to new sites as their number one choice, followed by long trips to new sites as their second choice.

Consumers are optimistic, and travel spending remains resilient

McKinsey’s 2022 research on Chinese consumer sentiment shows that although economic optimism is seeing a global decline, 49 percent of Chinese respondents reported that they are optimistic about their country’s economic recovery. Optimism had dropped by 6 percentage points since an earlier iteration of the survey, but Chinese consumers continue to be more optimistic than other surveyed countries, apart from India (80 percent optimistic) and Indonesia (73 percent optimistic) (Exhibit 3). 16 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Chinese consumers are still keen to spend on travel, and travel spending is expected to be resilient. Wave 6 of the tourist attitude survey saw 87 percent of respondents claiming that they will spend more or maintain their level of travel spending. Moreover, when consumers were asked “which categories do you intend to splurge/treat yourself to,” travel ranked second, with 29 percent of respondents preferring travel over other categories. 17 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Against this context of consumer optimism, the wave 6 tourist attitude survey results shed light on how travelers plan to spend, and which segments are likely to spend more than others:

• The wealthier segment and older age groups (age 45-65) show the most resilience in terms of travel spend. Around 45 to 50 percent of travelers in these two groups will spend more on their next leisure trip.
• The wealthier segment has shown the most interest in beach and resort trips (48 percent). Instead of celebrating Chinese New Year at home with family, 30 percent of Chinese travelers in the senior age group (age 55-65) expect to take their next leisure trip during this holiday—10 percent more than the total average. And the top three trip preferences for senior travelers are culture, sightseeing, and health-themed trips.
• When it comes to where travelers plan to spend their money on their next trip, entertainment activities, food, and shopping are the most popular categories. These are also the most flexible and variable spending categories, and there are opportunities to up-sell—attractions, food and beverage, and retail players are well positioned to create unique and unexpected offerings to stimulate spending in this area (Exhibit 4).

Independent accommodation is gaining popularity

Overall, Chinese consumers have high expectations for products and services. McKinsey’s 2023 consumer report found that local brands are on the rise and consumers are choosing local products for their quality, not just for their cheaper prices. Chinese consumers are becoming savvier, and tap into online resources and social media to educate themselves about the specific details and features of product offerings. 18 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

Furthermore, 49 percent of Chinese consumers believe that domestic brands are of “better quality” than foreign brands—only 23 percent believe the converse is true. Functionality extended its lead as the most important criterion influencing Chinese consumers, indicating that consumers are focusing more on the functional aspects of products, and less on emotional factors. Branding thus has less influence on purchasing decisions. 19 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

These broader consumer sentiments are echoed in the travel sector. Chinese travelers pay attention to cost, but do not simply seek out the lowest prices. While 17 percent of wave 6 respondents are concerned about low prices, 33 percent are on the hunt for value-for-money offerings, and 30 percent prefer good discounts and worthwhile deals.

And consumer sentiment regarding local brands holds true for travel preferences. Independent travel accommodation continues to be the preferred choice for most respondents, increasing in share against international chain brand hotels (Exhibit 5). Almost 60 percent of respondents prefer independent accommodation such as boutique hotels, B&Bs, and Airbnb—an 8 percentage-point increase since 2020.

Local chain brand hotels remain stable, the favored accommodation for 20 percent of respondents. These hotels are seen as a more standardized option, and as most are located in urban areas, they target the budget traveler segment.

Opting for independent accommodation is not considered a trade down; Chinese travelers expect a high level of service. In particular, respondents in the wealthier segment picked independent options (57 percent) over international premium brands (27 percent).

Premium independent options for the wealthier segment are abundant, specifically in leisure travel. Setting up a premium brand hotel requires long-term construction periods and heavy capital investment. Small-scale boutique hotels or B&Bs, on the other hand, are more agile solutions that can ramp up in the short term. This may explain the abundance of premium independent offerings. For instance, in destinations such as Lijiang and Yangshuo, between seven and nine of the top-ten premium hotels listed on Ctrip are independent boutique hotels.

Premium independent accommodation’s strength lies in quality guest experience with a genuine human touch. The service level at premium independent establishments can even surpass that of chain brand accommodation thanks to the high staff-to-room ratio, which easily reaches 3:1 or even 5:1. 20 “Strategic marketing analysis of boutique hotels,” Travel Daily , June 3, 2015. For hotels in Xiamen, Lijiang, and Yangshou, Ctrip service ratings of premium independent hotels are all above 4.7, outperforming international chain brand hotels.

Travelers are becoming smarter and more realistic during hotel selection, focusing on fundamental offerings such as local features and value for money. Across all types of hotels, local features are one of the most important factors influencing hotel selection—even for chain brand hotels which have a reputation for mastering the standardized offering. On average, 34 percent of respondents report that local features and cultural elements are the key considerations affecting their choice of hotel.

Outbound Chinese tourists are evolving rapidly, becoming increasingly diverse in their travel preferences, behaviors, and spending patterns. Chinese travelers are not homogeneous, and their needs and preferences continue to evolve. Therefore, serving each group of tourists may require different product offerings, sales channels, or marketing techniques.

The path toward eco-friendly travel in China

How international travel and tourism can attract outbound chinese travelers.

China’s lifting of travel restrictions may cause some uncertainty in the short term, but a promising recovery lies ahead. Chinese tourists have maintained a strong desire to travel internationally and are willing to pay for this experience. They are also discerning and looking for high-quality accommodation, offerings, and service. As boutique hotels are becoming more popular, international hotel brands hotels could, for example, aim to stand out by leveraging their experience in service excellence.

With renewed travel demand, now may be the time for international travel and tourism businesses to invest in polishing product offerings—on an infrastructural and service level. Tourism, food and beverage, retail, and entertainment providers can start preparing for the rebound by providing unique and innovative experiences that entice the adventurous Chinese traveler.

Craft an authentically local offering that appeals to experience-driven Chinese travelers

Chinese travelers have suspended overseas trips for three years, and are now looking to enjoy high-quality experiences in destinations they have been to before. They also want to do more than shopping and sightseeing, and have expressed willingness to spend on offerings geared towards entertainment and experience. This includes activities like theme parks, snow sports, water sports, shows, and cultural activities. Authentic experiences can satisfy their desire for an immersive foreign experience, but they often want the experience to be familiar and accessible.

Designing the right product means tapping into deep customer insights to craft offerings that are accessible for Chinese travelers, within a comfortable and familiar setting, yet are still authentic and exciting.

Travel and tourism providers may also have opportunities to up-sell or cross-sell experiences and entertainment offerings.

Social media is essential

Social media is emerging as one of the most important sources of inspiration for travel. Short video now is a major influence channel across all age groups and types of consumers.

Tourist destinations have begun to leverage social media, and short video campaigns, to maximize exposure. For example, Tourism Australia recently launched a video campaign with a kangaroo character on TikTok, and overall views soon reached around 1.67 billion.

The story of Ding Zhen, a young herder from a village in Sichuan province, illustrates the power of online video in China. In 2020, a seven-second video of Ding Zhen turned him into an overnight media sensation. Soon after, he was approached to become a tourism ambassador for Litang county in Sichuan—and local tourism flourished. 21 “Tibetan herder goes viral, draws attention to his hometown in SW China,” Xinhuanet, December 11, 2020. Another Sichuan local, the director of the Culture and Tourism Bureau in Ganzi, has drawn visitors to the region through his popular cosplay videos that generated 7 million reviews. Building on the strength of these influential celebrities, visitor numbers to the region were said to reach 35 million, more than two-and-a-half times 2016 volumes. 22 “Local official promoting Sichuan tourism goes viral on internet,” China Daily, June 17, 2022; “The Director of Culture and Tourism disguises himself as a “Swordsman” knight to promote Ganzi tourism,” Travel Daily , June 17, 2022.

Online travel companies are also using social media to reach consumers. Early in the pandemic, Trip.com took advantage of the upward trend in livestreaming. The company’s co-founder and chairman of the board, James Liang, hosted weekly livestreams where he dressed up in costume or chatted to guests at various destinations. Between March and October 2020, Liang’s livestreams sold around $294 million’s worth of travel packages and hotel room reservations. 23 “Travel companies adapt to a livestreaming trend that may outlast the pandemic,” Skift, October 26, 2020.

Livestreaming is being used by tourism boards, too. For instance, the Tourism Authority of Thailand (TAT) collaborated with Trip.com to launch a new campaign to attract Chinese tourists to Thailand as cross-border travel resumed. The broadcast, joined by TAT Governor Mr Yuthasak Supasorn, recorded sales of more than 20,000 room nights amounting to a gross merchandise value of over RMB 40 million. 24 “Trip.com Group sees border reopening surge in travel bookings boosted by Lunar New Year demand,” Trip.com, January 13, 2023.

International tourism providers looking to engage Chinese travelers should keep an eye on social media channels and fully leverage key opinion leaders.

Scale with the right channel partners

Travel distribution in China has evolved into a complex, fragmented, and Chinese-dominated ecosystem, making scaling an increasingly difficult task. Travel companies need to understand the key characteristics of each channel type, including online travel agencies (OTAs), online travel portals (OTPs), and traditional travel agencies as each target different customer segments, and offer different levels of control to brands. It also takes different sets of capabilities to manage each type of distribution channel.

Travel companies can prioritize the channels they wish to use and set clear roles for each. One challenge when choosing the right channel partner is to avoid ultra-low prices that may encourage volume, but could ultimately damage a brand.

Meanwhile, given the evolution of the postCOVID-19 industry landscape and rapid shifts in consumer demand, travel companies should consider direct-to-consumer (D2C) channels. The first step would be selecting the appropriate D2C positioning and strategy, according to the company’s needs. In China, D2C is a complicated market involving both public domains (such as social media and OTA platforms) and private domains (such as official brand platforms). To make the most of D2C, travel companies need a clear value proposition for their D2C strategy, whether it be focused on branding or on commercial/sales.

Create a seamless travel experience for the digitally savvy Chinese tourist

China has one of the most digitally advanced lifestyles on the planet. Chinese travelers are mobile-driven, wallet-less, and impatient—and frequently feel “digitally homesick” while abroad. Overseas destinations and tourism service providers could “spoil” tech-savvy Chinese travelers with digitally enhanced service.

China’s internet giants can provide a shortcut to getting digital services off the ground. Rather than building digital capabilities from scratch, foreign tourism providers could engage Chinese travelers through a platform that is already being used daily. For example, Amsterdam’s Schiphol Airport provides a WeChat Mini Program with four modules: duty-free shopping, flight inquiry, information transfer, and travel planning. This contains information about all aspects of the airport, including ground transportation and tax refund procedures.

Alibaba’s Alipay, a third-party mobile and online payment platform, is also innovating in this space. The service provider has cooperated with various tax refund agencies, such as Global Blue, to enable a seamless digitized tax refund experience. Travelers scan completed tax refund forms at automated kiosks in the airport, and within a few hours, the refunded amount is transferred directly to their Alipay accounts. 25 “Alipay and Global Blue to make tax refunds easy for Chinese tourists,” Alizila, June 23, 2014.

Such digital applications are likely to be the norm going forward, not a differentiator, so travel companies that do not invest in this area may be left behind.

Chinese travelers are on the cusp of returning in full force, and tourism providers can start preparing now

With China’s quarantine requirements falling away at the start of 2023, travelers are planning trips, renewing passports and visas, and readying themselves for a comeback. Chinese tourists have not lost their appetite for travel, and a boom in travel demand can be expected soon. Though airlines are slow to restore capacity, and some destination countries are more risk averse when welcoming Chinese travelers, there are still options for Chinese tourists to explore destinations abroad.

Tourism providers can expect to welcome travelers with diverse interests who are willing to spend money on travel, who are seeking out exciting experiences, and who are choosing high-quality products and services. The returning Chinese traveler is digitally savvy and favors functionality over branding—trends suggest that providers who can craft authentic, seamless, and unique offerings could be well positioned to capture this market.

Guang Chen and Jackey Yu are partners in McKinsey’s Hong Kong office, Zi Chen is a capabilities and insights specialist in the Shanghai office, and Steve Saxon is a partner in the Shenzhen office.

The authors wish to thank Cherie Zhang, Glenn Leibowitz, Na Lei, and Monique Wu for their contributions to this article.

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• Europe awaits return of Chinese tourists after pandemic

A young woman in a traditional Hungarian folklore dress greets Chinese tourists at the Budapest airport in Budapest, Hungary, on March 26, 2023. (Photo by Attila Volgyi/Xinhua)

After three years of job switchings, Slovenian tour guide Luka is eagerly anticipating the arrival of the first group of tourists from China as now the situation of the COVID-19 pandemic has improved a lot.

As one of the few registered Chinese-English tour guides in Slovenia, Luka is warming up his spoken Chinese, as droves of tourists from China are expected to arrive for the summer holidays.

In 2019, 13 million Chinese tourists landed in the European Union (EU) member states, according to a report by the Brussels-based European Travel Commission (ETC).

This number has plunged since the pandemic, till the reopening of European countries and the relaxation of China's outbound travel restrictions.

At the beginning of this year, China resumed its outbound travel business. Currently, China allows group tours to 60 countries.

In late March, Hungary welcomed its first group of Chinese tourists after three pandemic years. The 22 Chinese visitors, who arrived in the country for a nine-day stay there, were greeted by Hungarian government officials at the Budapest Airport.

"This is my third visit to Hungary," said Lou Zhiyuan, 60, who flew in from China's Guangzhou city and had just retired. She signed up for the tour group immediately when the possibility opened up. She last visited Hungary eight years ago.

European tourism was badly hit by the COVID-19 pandemic and is expected to recover speedily with the return of Chinese tourists.

Chinese tourists made 22.2 million overnight stays in the EU in 2019. Due to the pandemic, this number fell to 3 million in 2020 and declined further to 1.6 million in 2021, according to the EU's statistical office Eurostat.

Before the pandemic, Croatia welcomed more than 300,000 visitors from China per year. "We will do everything in our power to facilitate the arrival and stay of Chinese tourists in Croatia," Kristjan Stanicic, director of the Croatian National Tourist Board, told Xinhua.

Direct flights between Athens and Shanghai were also launched in December 2022, after the direct flights between Athens and Beijing commenced in 2017.

"We are a Chinese-ready airport," said Ioanna Papadopoulou, director of communication and marketing at Athens International Airport (AIA), where virtual assistants help Chinese tourists with information in their own language. They can also use familiar methods of payment which they use back home at AIA's duty-free shops.

According to the ETC, Chinese tourists are still rare in France, although it was the most popular destination for them outside Asia before the pandemic.

In 2019, more than 2.4 million Chinese visited France, and Chinese tourists spent around 180 euros (199.7 U.S. dollars) per day there, the ETC said.

"We have seen a significant increase in the number of our Chinese customers," Ms. Wang, owner of the New Shanghai restaurant near the Palace of Versailles southwest of Paris, told Xinhua.

Not far away, the line of tourists waiting for entering the Palace stretches for nearly 100 meters, but only a few of them are Asian, mostly from Japan and South Korea.

"After three years of pandemic life, Chinese travel agencies have lost contact with Europe's hotels and car rental agencies. In the short term, it is difficult to return to the preferential prices we could offer them before the pandemic," Liu Yuan, a tour guide operator in France, told Xinhua.

But for Luka, at least he could count on the returning Chinese tourists for a much more stable job. 

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U.S. Seeks to Join Forces With Europe to Combat Excess Chinese Goods

Treasury Secretary Janet L. Yellen warned that China’s industrial strategy posed a global threat that requires a united response.

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By Alan Rappeport and Liz Alderman

Alan Rappeport is traveling with Treasury Secretary Janet L. Yellen in Germany and Italy this week. Liz Alderman is the chief European business correspondent.

Treasury Secretary Janet L. Yellen said on Tuesday that the United States and Europe needed to work together to push back against China’s excess industrial capacity, warning that a wave of cheap Chinese exports represents a grave threat to the global economy.

Ms. Yellen’s remarks, delivered during a speech in Germany, highlighted what is expected to be a central topic of discussion when the Group of 7 finance ministers meet in Italy this week.

“China’s industrial policy may seem remote as we sit here in this room, but if we do not respond strategically and in a united way, the viability of businesses in both our countries and around the world could be at risk,” Ms. Yellen said at the Frankfurt School of Finance and Management, where she received an honorary doctoral degree.

China’s excessive production of green energy technology has become a pressing trans-Atlantic concern in recent months. Officials in President Biden’s administration have grown increasingly worried that his efforts to finance domestic manufacturing of clean energy and other next-generation technologies will be undercut by China, which is churning out steel, electric cars and solar panels at a rapid clip.

The Biden administration is now looking to Europe to help the developed world prevent the kind of China shock of the early 2000s, which helped decimate manufacturing in exchange for cheap goods. Last week, Mr. Biden increased tariffs on some Chinese imports, including levying a 100 percent tax on electric vehicles. He also formally left in place levies on more than $300 billion worth of Chinese goods that President Donald J. Trump had imposed.

The United States hopes that a united front will convince China that its largest trading partners are prepared to erect trade barriers that will prevent Chinese electric vehicles, batteries and panels from dominating Western markets.

Ms. Yellen emphasized on Tuesday that the United States was not trying to carry out an anti-China policy, but said China’s actions posed a threat to the global economy that warranted a coordinated response.

She pointed to China’s push to dominate clean energy technology and other sectors, saying that ambition “could also prevent countries around the world, including emerging markets, from building the industries that could power their growth.”

The trend toward protectionist policies is likely to become another point of contention between China and the world’s most advanced economies. Liu Pengyu, a spokesman for the Chinese Embassy in Washington, derided Mr. Biden’s decision to impose new tariffs on Chinese goods last week as a “political maneuver.”

“We hope the U.S. can take a positive view of China’s development and stop using overcapacity as an excuse for trade protectionism,” Mr. Liu said.

The new U.S. tariffs could put additional pressure on Europe to erect trade barriers of its own to prevent China from redirecting more of its exports there. Europe’s officials are already considering additional levies on Chinese cars, which pose a particular threat to Germany.

About 37 percent of all electric vehicle imports to Europe are produced in China, including Chinese brands and ones made by Tesla and German automakers with plants there. Europe is the world’s second-biggest E.V. market, and imports there skyrocketed last year to $11.5 billion, from $1.6 billion in 2020.

The European Commission is investigating whether Chinese state subsidies intended to help the country’s companies make cheap cars are damaging Europe’s auto industry. The sector provides nearly 14 million direct and indirect jobs in Europe, and the six million cars that it exported last year generated a trade surplus of more than 100 billion euros.

Europe’s investigation could result in preliminary duties on Chinese electric vehicle imports as soon as July, though any tariffs are likely to be far lower than the 100 percent imposed by the Biden administration. But unlike Europe, which is already importing cars from China, the United States has erected several barriers to prevent Chinese E.V.s from coming to its shores.

Europe’s investigation into China’s subsidies and whether they merit tariffs has aggravated a political divide. Some countries, such as Germany, which is Europe’s biggest maker of electric cars, have been against an investigation. German officials are wary of pressing penalties that might incite Beijing to shut out German carmakers such as BMW and Volkswagen.

Chancellor Olaf Scholz said in a speech in Stockholm last week, “We should not forget: European manufacturers, and also some American ones, are successful on the Chinese market and also sell a lot of vehicles that are produced in Europe to China.” He added that at least half of electric vehicles imported to Europe from China were Western brands.

Ursula von der Leyen, the European Commission president, has been pushing for “de-risking” Europe’s relationship with China. Her approach is backed by President Emmanuel Macron of France, who hosted his Chinese counterpart, Xi Jinping, this month and has urged Brussels to step up protection against what his administration sees as unfair Chinese competition.

The Brussels investigation has focused less on whether China is dumping large numbers of cars into Europe and more on how subsidies have allowed E.V.s made by BYD, Geely and SAIC, the three biggest Chinese E.V. makers, to offer cut-rate prices. The Chinese government has criticized the European Union for not investigating Western brands with factories in China — including Tesla, which exports more E.V.s from China to the European Union than any other producer.

The Rhodium Group , an independent think tank that focuses on China, said that to compensate for Chinese state subsidies, the European Commission would have to impose duties of up to 50 percent on Chinese E.V.s. But the group suggested that such a move would be unlikely in Europe unless officials took a more “drastic” review of World Trade Organization rules, and suggested that tariff rates of 15 to 30 percent were more realistic.

In the meantime, Chinese electric vehicle makers, including BYD and Great Wall Motor, are setting up factories in Hungary to build cars that would be viewed as European-made products, which could raise trade issues eventually with the United States.

The Biden administration is watching with similar concern as Chinese car companies invest in factories in Mexico, which could potentially be used to enter the U.S. market.

Following her speech, Ms. Yellen told reporters that the United States and countries in Europe have different concerns when it comes to commerce with China and, as a result, they could use different tools to address them. But she added that because many of the concerns about China’s heavy subsidization of exports are broadly shared, it is “more forceful to communicate to China as a group.”

The approach by the United States and Europe to work together to confront China does pose the risk of retaliation, inflaming trade tensions that could weigh on the world economy. Chinese officials said last week that they would respond to the new trade measures imposed by the United States.

In an interview with The New York Times this week, Ms. Yellen argued that the new U.S. tariffs were targeted and that she did not believe that China wanted to escalate tensions.

“I anticipate some response on China’s part, but my hope is that it’s moderate and proportional,” Ms. Yellen said.

Alan Rappeport is an economic policy reporter, based in Washington. He covers the Treasury Department and writes about taxes, trade and fiscal matters. More about Alan Rappeport

Liz Alderman is the chief European business correspondent, writing about economic, social and policy developments around Europe. More about Liz Alderman

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Reporting by Sarah Wu in Beijing; Additional reporting by Philip Blenkinsop in Brussels, Zhang Yan in Shanghai and Andreas Rinke in Berlin; Editing by Kevin Krolicki and Muralikumar Anantharaman

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Sarah Wu is a Reuters correspondent based in Beijing, covering the rise of China's EV industry - from trade tensions to autonomous driving. Previously, she reported on politics and general news in Hong Kong and technology and politics in Taiwan. Born in Fujian, she grew up in Ontario and graduated from Harvard.

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Best Chinese Food in Elektrostal, Moscow Oblast

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Best Chinese Food in Elektrostal, Moscow Oblast

Chinese restaurants in elektrostal, establishment type, traveller rating, restaurant features.