The tourism industry in China is facing a challenging time, despite the apparent success seen in travel data during peak seasons such as the Mid-Autumn Festival and the National Day holiday. While statistics show an increase in domestic trips and spending, many tour operators are struggling to stay afloat, with some reporting this year’s peak seasons as the “worst ever”.
Guan Wenlu, COO of Dear Voyage, a high-end travel agency, expressed her dismay at the dismal business during the recent ‘golden week’. Many travel agents across China share a similar sentiment, noting that bookings are significantly lower compared to previous years. Shen Qianyu, a travel agent from Sanya, highlighted that hotels did not raise prices during the holiday, but bookings were only at 60-65% of what was seen in 2019.
Despite the positive travel data reported by the Ministry of Culture and Tourism, the reality on the ground tells a different story. Guizhou, Xinjiang, Gansu, Shaanxi, Qinghai, and Ningxia experienced good visitor numbers, but low consumer spending has dampened overall sentiment among operators. Zhang Haoxi, founder of Travel Zone, noted that while interest in Yunnan remains high, spending cutbacks are affecting the industry.
The ongoing trend of spending cutbacks in China has intensified amid economic uncertainties, weak income growth expectations, and a reluctance among consumers to open their wallets. Many operators are struggling to maintain their businesses, with some reporting significant drops in occupancy rates and revenue. Cun Xiaoqin, a travel agent in Yunnan province, highlighted the challenges faced by high-end hotels compared to mid- to low-end ones.
Overall, the tourism industry in China is navigating through a tough period, with operators adjusting their products and strategies to adapt to changing market dynamics. While there may be an increase in tourist numbers, the underlying challenges faced by businesses paint a different picture from the optimistic travel data reported. As the industry continues to grapple with the effects of the pandemic and economic uncertainties, operators are looking for ways to sustain their businesses and attract tourists in the coming months.
