China outbound tousism disappoints so far in 2023

Weak demand resulting from slower economic recovery in PRC, coupled with insufficient air capacity and high fares, has limited outbound tourism so far in 2023.

Arrivals of outbound tourists from China in Southeast Asian countries in May reached only 14% to 39% of 2019 levels.

Even the most popular destinations for Chinese travelers including Thailand, Bali, Singapore and Japan are seeing relatively few Chinese tourists.

Chinese outbound tour operators report seeing no significant increase in business in 2H2023 vs. 1H, with summer demand at only 10%-30% of pre-pandemic numbers..

Recovery of PRC outbound to Europe is being hindered by reports in Chinese media of rampant inflation and high prices in the continent, as well as airline fares that are up 80% from 2019.

But all is not yet lost, as June searches done from China for outbound travel were up 6X vs. a year ago.

Should Western countries cut back on marketing to China for 2023 and shift spend to other markets, or is there still hope for July-December? Stay tuned.