This article will soon be exclusive to Jing Daily Pro* subscribers. The Pro* membership will feature our most focused coverage yet as we double down on our investment in research, trend forecasting, and practical insights for brands and executives doing business in China. Pre-register for a free trial, coming later this summer. - China is witnessing a significant uptick in both domestic and international travel this summer. Recent data reveals 23% increase in domestic flight bookings and a staggering 93% rise in international travel year on year, according to TravelSky data reported by Yicai. For July 1 to August 31, 2024, the peak travel period, domestic flights bookings have surpassed 18 million – a sharp 23% rise compared to last year. Meanwhile, international flights have reached nearly 145,000 planned departures, with bookings approaching 7 million, up 93% YoY. In response to soaring demand, airlines like Air China are strategically increasing their operations. Notable additions include new routes such as Beijing-Dhaka and Chengdu-Milan, and increased frequencies on 13 existing routes, including Beijing-Copenhagen and Chengdu-Singapore. These expansions are part of Air China’s broader strategy to restore its international network to over 90% of its pre-pandemic scope, spanning 114 routes across 43 countries and regions. Asia remains a top destination While Chinese tourists have returned to the likes of Milan, Paris and Barcelona, the majority of the top international travel destinations among Chinese heading abroad remain in Asia, with cities like Bangkok, Seoul, Tokyo, Osaka, Hong Kong, Singapore, Taipei, Phuket, and Macau dominating the list, with London being the only non-Asian outlier, according to TravelSky. This trend underscores a growing preference among Chinese tourists for closer destinations. Japan, in particular, continues to attract significant attention, benefiting from a weaker Yen. It welcomed over 3 million visitors for the third consecutive month, including a 305% increase in mainland Chinese tourists in May alone, compared to 2023. Thailand's appeal among Chinese travelers has also been boosted following a recent visa-free treaty, further simplifying travel between the two nations. Nearly 2.5 million Chinese tourists visited Thailand in the first four months of this year, according to Chinese travel agency Trip.com, making the Chinese Thailand’s biggest tourism contingent. Spending trends are also revealed in a recent survey by payment giant Visa, which shows that Chinese mainland tourists rank third globally in terms of travel spending in South Korea, trailing only the US and Japan. Interestingly, American tourists tend to spend significantly on dining and food stores, whereas Chinese tourists allocate a higher proportion of spending to retail outlets, department stores, and clothing. Health, wellness and medical tourism in places like Thailand and South Korea have also seen a boost, indicating a growing interest in more holistic experiences that are mentally and physically beneficial. Middle East gaining popularity The allure of the Middle East is increasingly resonating with Chinese travelers, particularly Dubai, which has seen a notable surge in tourist arrivals. In 2023, Dubai welcomed 620,000 Chinese overnight visitors, and nearly 290,000 have already visited in the first four months of 2024 alone, a 101% increase from the previous year. With direct flights from 14 Chinese cities and the widespread acceptance of payment platforms like Alipay and WeChat, Dubai’s tourism sector is well-poised to cater to Chinese visitors. Dubai Tourism is taking innovative steps to engage this audience by partnering with Xiaohongshu for the “Discover Dubai in a New Way” summer campaign. This initiative invites travel influencers to explore unique local attractions and encourages user participation through social media challenges, offering enticing prizes and discounts. Following in the UAE’s footsteps and no doubt taking notes is Saudi Arabia, which has recently positioned itself as an official prime destination for Chinese tourists, announcing new measures to enhance accessibility and visitor experience. These include streamlined visa processes, reduced travel costs, and a significant increase in flight capacity. Saudi destinations are also improving their tourist infrastructure, featuring Chinese language support and integrating payment systems like UnionPay and Alipay to facilitate smoother travel experiences for Chinese visitors. As China’s international travel market rebounds with vigor, the summer of 2024 is set to be a landmark season for tourism, where some of the biggest shifts and new trends will become apparent. What is the implication for luxury? In the hospitality industry, the demands will be obvious with luxury destinations, properties as well as infrastructure, payment systems and Chinese language support growing in key destinations. But for retail, experiential shopping as well as fashion and beauty, global luxury brands and conglomerates will be taking note: where there is movement, there is money.
