China Lifts Restrictions on Group Tours for United States, Japan, South Korea, and Australia
BEIJING – China announced on Thursday that it has lifted pandemic-era restrictions on group tours for several countries, including the United States, Japan, South Korea, and Australia, in a move that could potentially benefit their tourism industries.
The decision was made by China’s culture and tourism ministry, with immediate effect. Prior to the pandemic, Chinese tourists were known to spend more than any other country’s tourists when traveling abroad. In 2019, they spent a combined $255 billion, with group tours accounting for approximately 60% of that spending.
The absence of Chinese tourists since the pandemic has caused significant financial difficulties for many tourism-dependent businesses around the world. However, with the lift of restrictions, there is hope for a revival in the tourism industry.
Germany and Britain were also among the countries for which restrictions were lifted. However, Canada, which has experienced politically fraught relations with China recently, was not included in the list.
This is the third list of countries approved by China for group tours. The first batch, approved in January, included 20 countries such as Thailand, Russia, Cuba, and Argentina. The second batch, approved in March, included 40 countries, including Nepal, France, Portugal, and Brazil.
While China has not explained its staggered approach to approvals, analysts have observed that the countries facing delays in gaining approval have had more political and/or trade tensions with China.
The announcement was welcomed by Japanese Prime Minister Fumio Kishida, as well as tourism ministers in South Korea and Australia. They believe that the lifting of restrictions will boost their economies.
“This is another positive step towards the stabilization of our relationship with China,” said Australian Trade and Tourism Minister Don Farrell.
However, it remains uncertain how much outbound Chinese tourism will recover for the latest group of countries. Expectations of a surge in demand after the reopening of borders have not been fully met. International flights in and out of China have only recovered to 53% of 2019 levels as of July.
Several factors contribute to this slow recovery, including staffing issues for global airlines, delays in visa issuance for Chinese travelers in many Western countries, and a struggling domestic economy that discourages Chinese holidaymakers from spending heavily.
Online reactions from Chinese citizens to the news were mixed. Some expressed a lack of enthusiasm for international trips, citing the beauty of domestic destinations and lower costs. However, others were more optimistic, stating that people want to spend the money they saved during the pandemic on international travel.
The announcement has already had an impact on the stock market, with shares in companies heavily affected by Chinese travel demand, particularly in South Korea, experiencing significant gains. For instance, Grand Korea Leisure and Paradise, both South Korean casino operators, saw their shares surge by 21% and 18%, respectively.
Sources in South Korea’s travel industry stated that this is the first time since a 2016 dispute over Seoul’s deployment of a U.S. missile defense system that group tours from China will be allowed on a large scale. China has never officially acknowledged limiting group tours to South Korea.
With the lifting of restrictions, it is hoped that the tourism industry in the countries listed will experience a much-needed boost. However, the recovery of Chinese outbound tourism is still uncertain, and the industry faces several challenges in rebuilding its momentum.
Reporting by Casey Hall in Shanghai, Sophie Yu in Beijing, and Joyce Lee in Seoul; Additional reporting by the Beijing newsroom; Editing by Jamie Freed and Edwina Gibbs