Choosing to travel domestically over internationally has become a growing trend among Chinese travelers, particularly high-income households. According to a recent survey by consulting firm Oliver Wyman, only 14% of high-income households in mainland China earning at least 30,000 yuan a month ($4,140) plan to travel abroad again in 2024. The primary reasons for this shift include the abundance of domestic travel options within China and the perceived high cost of international travel.
One of the key factors contributing to the rise of domestic tourism in China is the affordability of traveling within mainland China compared to international destinations like Hong Kong or Japan. Oliver Wyman reported that the average cost per person for domestic travel is less than 1,000 yuan, making it a more budget-friendly option for many Chinese travelers.
In the wake of the Covid-19 pandemic, local tourism has seen a significant uptick in China. Booking site Trip.com noted a 2.6 times increase in bookings for rural destinations within China compared to pre-pandemic levels. Additionally, during a recent public holiday from May 1 to May 5, domestic tourism trips and revenue surged, surpassing pre-pandemic levels in 2019.
While international travel from China may take longer to fully recover, domestic tourism is expected to continue growing. Smaller cities like Yangzhou, Luoyang, Qinhuangdao, Guilin, and Zibo have seen rapid growth in tourism bookings, indicating a shift towards exploring lesser-known destinations within China.
The rise of social media and online platforms has played a significant role in promoting local tourism in China. Local governments have been leveraging platforms like Douyin and Xiaohongshu to showcase their cultural heritage and attractions, attracting millions of viewers and potential tourists. Television shows featuring specific regions have also contributed to the boost in tourism, with viewers flocking to destinations featured in popular dramas.
It’s essential for international tourist destinations to upgrade their offerings to cater to the evolving preferences of Chinese travelers. As the Chinese tourism market continues to flourish, providing unique and enjoyable experiences will be key to attracting and retaining visitors. Stay tuned for more insights and updates on trends in the finance sector on Extreme Investor Network.