Tourists not returning to China is a problem for its struggling economy.

Tourists not returning to China is a problem for its struggling economy.

China’s economy is facing challenges that have been causing disappointment in its economic growth. These challenges include a depressed housing market, soaring youth unemployment, and concerns about deflation. Despite hopes for a stronger rebound, China’s growth for the second quarter fell short of analysts’ forecasts, coming in at 6.3%.

However, China’s economic troubles are not limited to these domestic factors. The country is also struggling to attract foreign tourists back to its shores. In the first quarter of this year, only 52,000 tourists on trips organized by travel agents visited China, a figure that is 98% lower than the same period in 2019. This decline in international visitors is worrying for China’s tourism sector, which has been described as being in a state of “distress and depression” following the slow reopening after the pandemic.

For nearly three years, China had implemented a stringent “zero-Covid” policy that effectively closed the country to business travelers, tourists, and even residents’ families. The gradual reopening earlier this year has not yet led to a significant return of international tourists. It’s unclear whether deteriorating relations with the West have also played a role in deterring visitors, as the US State Department recently issued a travel warning for Mainland China.

“The number of visitors from Europe, America, Japan, and Korea are all dropping, substantially,” said Xiao Qianhui, a director of the China Tourism Association. While China is less reliant on tourism compared to its neighboring countries like Thailand and Vietnam, it is still a significant contributor to its economy. In fact, China has seen a 90% rebound in its tourism outflows to other countries, according to Bloomberg.

Despite the slowdown in tourism, Beijing has not taken significant intervention measures to stimulate the economy. Pressure to boost manufacturing, services, and export volumes has been mounting, but the Chinese government has yet to take decisive action. This hesitation could potentially impact China’s ability to shake off its economic slowdown.

• US crude oil exports disrupt European and Asian prices.
• China and Saudi Arabia are in talks for ETF cross-listings to stren...
• Fitch forced into defense mode after backlash over U.S. credit rati...

China’s economic struggles are multi-faceted, with both domestic and international factors at play. While the country may be less reliant on tourism compared to others in the region, a lack of international visitors will nevertheless hinder economic growth. The pressure is mounting for Beijing to take steps to stimulate recovery and restore confidence in its economy.

• Beijing
• China
• Tourism