Chinese set to spend record US$1 trillion in local travel boom
Local holidaymakers will splash out nearly 19 per cent more on mainland travel than in 2024, industry group the World Travel and Tourism Council (WTTC), which conducts travel research, said in a forecast.
Spending on international holidays is also poised to finally outpace pre-Covid-19 levels in 2025, the council said, after a slower-than-expected recovery last year fell 11 per cent short of the 1.8 trillion yuan (S$324 billion) forecast.
The boom comes as China doubles down on expanding cultural and tourism events across the country to boost consumption, as it grapples with slowing consumer spending and the impending threat of US tariffs on its economy. Less expensive trips closer to home are becoming increasingly popular, including road and train journeys.
The Ministry of Culture and Tourism on Tuesday (Apr 29) announced a new plan that will run till 2026 and include concerts, exhibitions and patriotic 'red tourism'.
Surveys of Chinese consumers also show continued interest in overseas tourism.
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Three out of four respondents polled in March by travel marketing company Dragon Trail International were either interested in travelling outbound this year or had already made plans for a foreign trip. Most of those trips were in Asia, though interest in all other regions has grown, Dragon Trail said.
'China had a strong recovery in 2024 and the outlook is very good,' WTTC executive vice-president Virginia Messina told Bloomberg. 'Domestic travel is really strong, and Chinese travellers continue to be a huge powerhouse when it comes to outbound trips.'
That's welcome news for major global travel markets, where Chinese tourists remain the biggest spenders by nationality and hold outsized sway.
Chinese travellers were the biggest spenders on international tourism in 2023, laying out US$197 billion – ahead of American and German visitors – according to UN Tourism.
On the flip side, China's own expansive efforts to attract foreign tourists with visa-free travel and relaxed entry for dozens of countries could pay off this year, too. Spending by international visitors is forecast to hit 1.04 trillion yuan, a 13 per cent growth from 2019. BLOOMBERG
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