China’s travel revival might need a little more time

While China easing group tour restrictions is a travel industry leap, don't expect a sudden surge of Chinese tourists

Aug 21, 2023

International flights from China remain at around 50% of pre-pandemic levels. The visa application process is still tangled up. And prices are elevated for many popular tourist destinations after strong demand this summer.

Key takeaways

  • Adding to the challenges is the potential impact of youth unemployment, weighing on the burgeoning Chinese Gen-Z outbound tourism market;
  • Despite a cooling Chinese economy, McKinsey says that 40% of Chinese individuals express an intention to increase their travel spending (compared to 15% who plan to reduce it);
  • The wealthier segment and older age groups (ages 45-65) exhibit the most robustness in terms of travel spending.

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