Chinese set to spend record $1T in local travel boom

For more China-focused finance coverage, subscribe to the Jing Finance newsletter for the latest news, business updates, global analysis, and trends shaping financial markets. Chinese travelers are expected to fork out a record $968 billion on mainland trips this year, making domestic tourism a bright spot amid concerns about lackluster consumer spending. Local holidaymakers will splash out nearly 19% more on mainland travel than in 2024, industry group the World Travel and Tourism Council, which conducts travel research, said in a forecast. Spending on international holidays is also poised to finally outpace pre-Covid levels in 2025, the council said, after a slower-than-expected recovery last year fell 11% short of the 1.8 trillion RMB ($247 billion) forecast. The boom comes as China doubles down on expanding cultural and tourism events across the country to boost consumption, as it grapples with slowing consumer spending and the impending threat of U.S. tariffs on its economy. Less expensive trips closer to home are becoming increasingly popular, including road and train journeys. Government initiatives fuel domestic tourism The Ministry of Culture and Tourism yesterday announced a new plan that will run through 2026 and include concerts, exhibitions and patriotic “red tourism.” Surveys of Chinese consumers also show continued interest in overseas tourism. Three out of four respondents polled in March by travel marketing company Dragon Trail International were either interested in traveling outbound this year or had already made plans for a foreign trip. Most of those trips were in Asia, though interest in all other regions has grown, Dragon Trail said. “China had a strong recovery in 2024 and the outlook is very good,” WTTC Executive Vice President Virginia Messina told Bloomberg. “Domestic travel is really strong, and Chinese travelers continue to be a huge powerhouse when it comes to outbound trips.” China remains global tourism’s biggest spender That’s welcome news for major global travel markets, where Chinese tourists remain the biggest spenders by nationality and hold outsized sway. Chinese travelers were the biggest spenders on international tourism in 2023, laying out $197 billion — ahead of American and German visitors — according to UN Tourism. On the flip side, China’s own expansive efforts to attract foreign tourists with visa-free travel and relaxed entry for dozens of countries could pay off this year, too. Spending by international visitors is forecast to hit 1.04 trillion RMB ($143 billion), 13% growth from 2019. By K. Oanh Ha

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Chinese set to spend record $1T in local travel boom