China has announced the resumption of group tours to 78 countries, including popular destinations. The decision is seen as a boost to the global travel and retail industries, with luxury and travel stocks experiencing gains.
In a significant move with far-reaching implications, China’s Ministry of Culture and Tourism recently announced the resumption of group tours to 78 countries, including sought-after destinations like Japan, the United Kingdom, the United States, and Australia. This decision has sparked a surge in interest and inquiries, breathing new life into the travel and retail sectors and offering a beacon of hope for global economic recovery.
The Impact on Travel Agencies and Online Platforms
The announcement triggered a rapid increase in inquiries made to travel agencies, prompting them to swiftly introduce new travel options to the featured countries. Online travel service providers like Trip.com Group witnessed an impressive twentyfold surge in outbound travel inquiries following the news. With this heightened demand, the company promptly launched nearly 1,000 new travel products, anticipating a subsequent decrease in costs and more affordable prices for outbound group travel.
Ripple Effects on the Luxury and Travel Industries
The reverberations of China’s decision were felt across the globe, particularly in the luxury and travel sectors. European luxury and travel stocks experienced substantial gains, fueled by investor optimism over China’s strategic move. Leading luxury brands and airlines, including LVMH and Air France, saw their share values rise, underlining the positive reception from key players in these industries.
A Strategic Economic Move
China’s initiative to resume outbound group tours aligns with its broader economic strategy. As the world emerges from the shadow of the pandemic, China’s efforts to stimulate consumer activity and address deflation gain further momentum. By reinstating group tours to popular international destinations, China is not only rejuvenating its own outbound tourism market but also contributing to the global economic rebound.
Tapping into Unexplored Potential
McKinsey & Co.’s November 2022 Survey of Chinese Tourist Attitudes sheds light on the substantial potential of China’s outbound tourism market. Prior to the pandemic, Chinese tourists were prolific travelers, accounting for a staggering 155 million outbound trips in 2019. These travelers spent an impressive $255 billion on their journeys, with leisure travel as the primary motivation for approximately 65% of them. The survey also highlighted a continuing desire among Chinese tourists to explore international destinations, with around 40% expressing plans for outbound leisure trips.
A Catalyst for Global Economic Recovery
China’s resumption of outbound group tours sends a powerful signal to the global economy. The move not only offers a lifeline to the travel and retail sectors but also encourages collaboration and exchanges between countries. With international flights gradually resuming and travel becoming more accessible, the potential for a surge in cross-border economic activity becomes increasingly likely.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.