US travel sector faces long wait for China tourism to hit 2019 highs

The slower-than-expected China travel rebound may further pressure earnings for hotel operators in the U.S.

The U.S. travel sector will have to wait at least two more years for lucrative Chinese tourism to recover to pre-pandemic levels as slow growth and high costs in the Asian country keep its tourists away from America.

Key takeaways

• Chinese arrivals remain 60% below 2019 levels, according to data from the U.S. National Travel and Tourism Office (NTTO);
• That's largely because Chinese tourists are still grappling with an uncertain economy, prioritizing savings and turning to domestic travel or visiting nearby countries to save money.
• Analysts have also said rising geopolitical tensions and the high cost of flying between the U.S. and China are weighing on travel as the number of flights between the two countries remains below pre-pandemic levels.

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