tourism woes: A tarnished image, and a hit to the pocketbook for U.S. and china
Strained Relations Between USA and China Lead to Reputation Loss and Tourism Decline - Damaged Reputations and Declining Tourism for US and China
In the world of travel, recent crises and conflicts have taken a bigger toll on China than on the U.S. Major German airports, Frankfurt and Munich, report a surge in passengers on U.S. routes since President Donald Trump took office, but a decrease in traffic to China. In fact, the U.S. has overtaken China in global visitor numbers since 2019.
The travel industry predicts that Trump's second term will harm U.S. tourism. The World Travel & Tourism Council (WTTC) and Oxford Economics estimate that the U.S. will lose over $12 billion this year due to fewer foreign visitors. "Der Spiegel" dedicated its latest cover story to the "Trump-induced travel crisis."
On the other hand, China has seen a drop in passenger numbers on China flights to and from Munich and Frankfurt this year. This decline can be attributed to the effects of the COVID-19 pandemic, which significantly reduced flight offerings, and the impact of the Ukraine war, which has made it harder for European airlines to compete with Chinese ones. Several European airlines, including Lufthansa and British Airways, have suspended flights to China.
Despite the low numbers, tour operators like Studiosus and TUI see a resurgence in China tourism from Germany, Austria, and Switzerland, albeit limited by the scarcity of available seats.
While China has lost some international appeal since the COVID-19 pandemic, travel to the U.S. has recovered more quickly. In 2019, over 96.6 million foreigners visited China, but by 2024, that number had dropped to around 64.9 million - a decrease of about a third. Post-pandemic, travel to the USA has rebounded much faster: the United States counted 79.3 million visitors in 2019, fewer than China. Last year, it was 72.3 million - more than in China.
China's reputation in the Western world has suffered for much longer than that of the USA. Issues such as state surveillance, brutal COVID-19 lockdowns, environmental pollution, and war threats against Taiwan have left their mark on China's image. Tourism thrives on 'positive images in the mind', and bad publicity always lingers, drying up the flow of beautiful experiences, positive travel reports, and impressions.
Tourism is a volatile business, living on headlines and positive images in the mind. The same volatility applies to the U.S., but with the added advantage of a more favorable dollar exchange rate for Europeans.
Unlike the U.S. government, Beijing is actively trying to attract more visitors. The Chinese government has simplified and reduced the cost of its visa policy, and German tourists no longer need a visa for business or tourism travel. Those who enter can stay for 30 days. In the first quarter of this year, authorities reported about 17.4 million foreign entries - an increase of more than a third year-on-year.
Beijing hopes that tourism will also boost the domestic economy. Weak demand and dampened consumer sentiment are weighing on economic performance, and China also wants to stimulate with more domestic tourism. Offers like specially designed train journeys for seniors with on-board medical care and nursing are intended to encourage greater consumption among the elderly population.
[1] https://www.statista.com/chart/24038/international-travel-restrictions-during-covid-19/[2] https://www.statista.com/chart/24457/international-travel-to-the-united-states-during-the-covid-19-pandemic/[3] https://www.statista.com/chart/24469/passenger-traffic-at-selected-airports-worldwide-during-covid-19-pandemic/[4] https://www.statista.com/chart/24456/city-tourism-in-the-united-states-during-the-covid-19-pandemic/[5] https://www.statista.com/chart/24562/forecast-global-international-tourism-arrivals-until-2030/
- Despite China's efforts to attract more tourists with a relaxed visa policy and domain-specific tourism initiatives, negative perceptions rooted in issues like surveillance, lockdowns, environmental pollution, and geopolitical tensions persist, potentially hindering the revival of Chinese tourism. Such negative impressions are detrimental as tourism largely relies on positive images in the mind.
- Conversely, the U.S. remains an attractive destination for international tourists, as evidenced by its quicker recovery in tourist numbers following the pandemic, compared to China. However, other factors too influence travel decisions, such as lifestyle preferences, political climate, and general news, which have yet to be fully gauged in their impact on tourism flow.
