20-2-2024 (BEIJING) Chinese travellers have flocked to popular tourist destinations across Asia during the Chinese New Year break, surpassing pre-COVID-19 levels in visitor numbers and spending in countries such as Singapore, Thailand, and Malaysia.
The visa-free access granted to Chinese tourists in Southeast Asian countries has contributed to a robust revival in travel, following the lifting of strict COVID-19 restrictions by Beijing in early 2023, which had effectively closed China’s borders for three years.
This increase in travel provides relief to countries heavily reliant on Chinese tourism and spending for economic growth. However, the outlook for a sustained recovery in overseas travel is overshadowed by a sluggish mainland economy and volatile financial markets, prompting consumers to tighten their belts domestically.
HSBC, in a research note, stated, “Despite the macroeconomic headwinds, we believe Chinese citizens are still willing to spend on travel-related experiences… we think travel-related spending could continue to outpace overall domestic consumption.”
According to travel website operator Trip.com, bookings to Singapore, Thailand, and Malaysia combined have risen by over 30% from February 10 to February 17, compared to 2019. Chinese visitors to Hong Kong, Macau, Japan, and South Korea have also increased.
The 2024 Chinese New Year holiday lasted for eight days, one day longer than the break in 2019.
Visa waivers have had a significant impact on hotel bookings, with Bangkok experiencing a three-fold increase from February 10 to February 13 compared to the previous year, while Singapore witnessed a nine-fold surge, according to travel platform LY.com.
Alipay, the Chinese mobile payment platform, reported a 7.5% increase in spending in Singapore, Thailand, and Malaysia combined from February 9 to February 12, compared to 2019 levels. This marked an almost seven-fold increase from last year. However, overall consumer spending has only recovered to 82% of levels seen four years ago, according to Alipay.
Chinese travellers seeking new adventures have shown a growing interest in the Middle East as a Chinese New Year destination. Travel to Saudi Arabia has surged over nine-fold from 2019 levels, and bookings to the United Arab Emirates have increased by 60%, according to Trip.com.
Macao, the only place in China where gambling is legal, experienced a surge in Chinese tourists, with over a million visitors during the holiday period. Average hotel occupancy rates reached 95%, as reported by official data. This growth is promising for major casino operators in Macao, including Sands China and Wynn Macao.
JP Morgan predicts that daily gross gaming revenues during the peak of the holiday will exceed US$124 million, surpassing the US$112 million generated during the October 2023 Golden Week holiday. Mass gaming rates are expected to reach 120% of pre-COVID-19 levels, and February gross gaming revenues are projected to rise by at least 80% year-on-year to reach US$2.36 billion, the highest in over four years.
In Hong Kong, more than 1.2 million Chinese tourists visited the city during Chinese New Year, providing a much-needed boost to the economy. Hotel occupancy rates reached 90% in the first few days of the holiday, with around 1,980 group tours from mainland China visiting Hong Kong.
In Japan, Isetan Mitsukoshi Holdings, a department store operator, reported significantly higher duty-free sales compared to the previous year, partly due to Chinese New Year.
A shift in holiday preferences was observed as Chinese travellers sought more experiential trips. Alipay reported that Chinese tourists globally spent 70% more on food and beverages compared to pre-COVID-19 levels. Additionally, Trip.com noted a 53% increase in overseas car rentals compared to 2019 and a more than 130% surge in ticket bookings for scenic experiences abroad.
