Chinese travelers are increasingly choosing to explore domestic destinations over foreign tourist spots, according to a recent survey conducted by consulting firm Oliver Wyman. The survey revealed that only 14% of high-income households in mainland China, earning at least 30,000 yuan per month, plan to travel internationally again in 2024. The primary reasons cited for this shift in preference include the abundance of domestic travel options and the high cost associated with international travel.
The local tourism sector in China has experienced significant growth as the country emerges from the Covid-19 pandemic. Travel booking site Trip.com reported a 2.6 times increase in bookings for rural destinations in China compared to pre-pandemic levels. During a recent public holiday, domestic tourism trips and revenue saw a surge, surpassing levels from 2019. In contrast, international trips remained slightly below pre-pandemic figures.
Smaller cities in mainland China, such as Yangzhou, Luoyang, Qinhuangdao, Guilin, and Zibo, have witnessed the fastest growth in tourism bookings. According to Oliver Wyman, domestic tourism is expected to exceed pre-pandemic levels this year. However, the recovery of Chinese travelers going abroad may take longer, partly due to concerns about safety and stability in other parts of the world.
The shift towards domestic travel has had a significant near-term impact on local economies in China. Regions like Guangxi, known for Guilin’s limestone hills, have seen a rise in tourism revenue and economic activity. Local governments are actively promoting tourist attractions through social media platforms to attract visitors and stimulate growth.
The rise of domestic tourism in China has been fueled by social media trends and television shows highlighting specific regions and cultural experiences. Towns like Zibo and cities like Harbin have seen an influx of visitors after gaining popularity on social platforms. TV dramas and online content showcasing regional cuisine and traditions have played a key role in boosting tourism.
Infrastructure Development and Marketing Efforts
China’s extensive network of high-speed trains and flights has made it easier for people to explore small towns and lesser-known destinations. Booking platforms like Trip.com have reported a surge in domestic air ticket bookings, driven by a desire for emotional fulfillment and personalized travel experiences. Marketing collaborations between businesses and local governments seek to promote diverse destinations and attract more travelers.
While the current trend favors domestic travel in China, full recovery in international tourism is not expected to reach pre-pandemic levels until late 2025. Experts suggest that international tourist destinations will need to upgrade their offerings to meet the evolving preferences of Chinese travelers, who are increasingly seeking stylish and modern accommodations and services. As the domestic tourism industry continues to grow, it presents both opportunities and challenges for destinations looking to attract Chinese visitors.