Recent trends show that Chinese travelers are increasingly favoring domestic destinations over international ones. A survey conducted by consulting firm Oliver Wyman revealed that only 14% of high-income households in mainland China, earning at least 30,000 yuan a month, plan to travel abroad again in 2024. The top reasons cited for this shift include the abundance of domestic travel options and the high cost of international trips. This change in preference has been fueled by the availability of affordable travel options within mainland China, with the average cost per person for domestic travel being significantly lower than international trips.

The Covid-19 pandemic had a significant impact on the tourism industry, leading to a surge in bookings for domestic travel within China. 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 surpassed pre-pandemic levels in 2019, while international trips remained slightly below 2019 levels. Smaller cities such as Yangzhou, Luoyang, Qinhuangdao, Guilin, and Zibo saw the fastest growth in tourism bookings, signaling a shift towards exploring local attractions.

While the rise in domestic tourism presents opportunities for less developed parts of China, it also raises questions about the sustainability of this trend. Localities such as the Guangxi autonomous region have seen a significant increase in tourism revenue through initiatives that promote local attractions. By leveraging social media platforms and performing arts subsidies, these regions have been able to attract millions of visitors and stimulate economic activity. However, the long-term impact of this tourist interest remains to be seen, as efforts to maintain momentum and sustain growth are crucial for these regions.

Role of Media and Television in Driving Tourism

Social media and television have played a major role in promoting tourism in various regions of China. Platforms such as Douyin and Xiaohongshu have helped local governments reach a wider audience and attract tourists through viral campaigns. TV shows featuring specific regions have also contributed to the surge in visitors, with viewers being inspired to explore new destinations. The popularity of these cultural and culinary experiences has fueled interest in traveling to lesser-known parts of the country, highlighting the influence of media in shaping travel trends.

Looking ahead, the continued preference for domestic travel among Chinese consumers is likely to impact the international tourism industry. According to forecasts by Oliver Wyman, a full recovery in international travel to pre-pandemic levels may not occur until late 2025. This shift poses challenges for international tourist destinations, which will need to upgrade their offerings to attract Chinese travelers. As preferences evolve and travelers seek more personalized experiences, the tourism industry will need to adapt to meet changing demands. The rise of domestic tourism in China reflects a broader trend towards exploring local destinations and experiencing cultural diversity within the country.

Finance

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