Impacts of the US-China Relations on Global Tourism: China Faces Larger Decline Post-Pandemic
Diplomatic Setbacks between USA and China Lead to Damage in National Reputations and Tourism Decline - Strained Relations between US and China: Reputations Tarnished, Tourism Suffers Adversely
China and the United States have seen varying effects on their international travel, with China experiencing a more significant slump since the COVID-19 pandemic. Major German airports, Frankfurt and Munich, have shown an increase in US passenger numbers, outpacing China's traffic post-Trump's inauguration.
Damage to China's Reputation & Tourism Suffers
Industry experts anticipate a negative impact on US tourism during Trump's second term, estimating a loss of over $12 billion in revenue due to reduced tourist influx. In contrast, China is still battling the lingering effects of the pandemic, as well as geopolitical challenges such as the Ukraine war, causing a reduction in both departing and arriving passengers on China flights to and from Munich and Frankfurt.
European airlines face fierce competition with Chinese carriers due to complicated detours around Russian airspace. Lufthansa and British Airways are among the companies that have discontinued flights to China, causing a dip in the number of available seats for German tourists seeking to visit the region.
Tour operators see renewed interest in China tourism but are hampered by the limited number of available seats. Despithe downturn, TUI reports growing interest in China tours, albeit from a relatively small base.
Why China's Tourism Took a Hit
China's tourism decline is predominantly due to four key factors:
- Strict and Prolonged COVID-19 Travel Restrictions: China implemented rigorous border lockdowns and extensive quarantine measures during the pandemic, which kept inbound international tourism almost at a standstill for nearly three years. Though tourism is slowly recovering, it's not yet back to pre-pandemic levels.
- Changes in Chinese Outbound Travel Patterns: Chinese tourists once dominated the global tourism market, taking 155 million trips in 2019. However, domestic restrictions and COVID-19 anxieties significantly reduced outbound travel. As restrictions ease, Chinese tourists have been gravitating towards closer or culturally aligned countries, such as Singapore, rather than distant or politically controversial destinations.
- Impact of US-China Political Climate: Tense political relations between the United States and China have influenced the flow of tourists in both directions, with the deteriorated reputation of both countries affecting tourism demand.
- The Ukraine War and Broader Geopolitical Instability: The ongoing conflict in Ukraine has contributed to a climate of global instability, affecting airline routes, travel safety perceptions, and international diplomacy, particularly in countries with strained political relationships like China.
While the United States has managed to reopen its borders earlier, regaining international visitor numbers faster than China, China's government actively seeks to attract tourists, simplifying and lowering visa costs. In the first quarter of this year, authorities reported a 33% increase in foreign entries compared to the previous year.
Beijing aims to revitalize the domestic economy and stimulate consumer sentiment through the promotion of domestic tourism, with new offers catering to senior travelers and providing on-board medical care and assistance to encourage greater spending among elderly tourists.
Keywords:
- China
- USA
- Tourism
- Donald Trump
- Tourism damage
- Munich
- Frankfurt
- International travel
- US-China relations
- COVID-19
- Ukraine
- Tour operator
- Germany
- Geopolitical instability
- Travel industry
- Beijing
- Tourism recovery
- Despite seeing an increase in US passenger numbers at major German airports, such as Frankfurt and Munich, post-Trump's inauguration, China still faces a significant decline in international travel due to the COVID-19 pandemic and geopolitical challenges, such as the Ukraine war.
- The tourism industry anticipates a loss of over $12 billion in revenue during Trump's second term due to reduced tourist influx, while China continues to battle the lingering effects of the pandemic and geopolitical conditions, resulting in a reduction of both departing and arriving passengers.
- The tense political climate between the United States and China, combined with geopolitical instability due to the Ukraine war, has been influential in affecting tourism demand and thus, the flow of tourists in both countries.
