Written by Aishwarya Jain
(Reuters) – The U.S. travel industry will have to wait at least two more years for lucrative Chinese tourism to return to pre-pandemic levels as slowing growth and high costs in Asian countries drive tourists away from the United States. It won't happen.
A slower-than-expected recovery in Chinese travel could further squeeze profits for U.S. hotel operators as they grapple with normalizing domestic travel as inflation continues.
“As coronavirus restrictions ease, we expect travel between the U.S. and China, especially tourist travel, to see significant demand growth and return to at least pre-COVID levels,” Ryan Yonk said. “No such recovery has occurred.” Senior Fellow at the American Institute of Economic Research.
According to data from the U.S. National Tourism Organization, China began gradually lifting travel-related restrictions starting in January 2023, and fully lifted restrictions on group travel in August last year, but as a result the number of Chinese tourists increased. The number of people entering the country remained at nearly 1.1 million, still 60% below 2019 levels. Secretariat (NTTO).
The main reason for this is that Chinese tourists are still dealing with economic uncertainty and are prioritizing savings and turning to domestic travel and visits to neighboring countries to save money.
The Asian American Hotel Owners Association (AAHOA), which represents about 20,000 U.S. hoteliers, said the decline in Chinese tourists is hurting revenue and profits.
“This has led to job losses and financial burdens for those who rely on international tourism for a living and for related employees,” AAHOA said in a statement to Reuters.
Chinese tourists in the United States spent $15 billion in 2019, more than any other market, according to the U.S. Travel Association.
According to 2023 data from the International Trade Administration (ITA), Chinese tourists spent an average of $4,137 per visitor, 123.6% more than the average overseas tourist ($1,850 per visitor). ing.
Tourists from China also spend about 30% of their total travel budget on accommodation and lodging, according to ITA data.
Commerce Secretary Gina Raimondo said last year that the U.S. economy could gain $30 billion and 50,000 jobs if China returned to 2019 tourism levels.
Analysts also say rising geopolitical tensions and high airfares between the U.S. and China are weighing on travel, as the number of flights between the two countries remains below pre-pandemic levels. Says.
“The political situation between the U.S. and China, while generally negative, is not conducive to tourism between the two countries,” said Patrick Sholes, an analyst at Trust Securities.
Neighboring countries in Southeast Asia are encouraging Chinese tourists by relaxing visa requirements.
Chinese arrivals to Thailand and Singapore will increase by 1,187.1% and 942.2% in 2023, respectively, still below pre-pandemic levels but much higher than the 192.9% increase in the United States.
Outbound tourism from China to the United States is expected to increase in 2024, but will not exceed pre-pandemic levels until 2026, according to NTTO.
The total number of Chinese outbound travelers will remain below pre-pandemic levels until 2025, according to a report by Economist Intelligence.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Shamnath)
