A new analysis by the World Travel & Tourism Council’s (WTTC) 2023 Economic Impact Research (EIR) has revealed that this year it is expected that the GDP contribution of China’s Travel and Tourism sector will increase to more than 150 percent.
According to the report, during this period the sector will contribute with 9.9 TN to China’s economy as well, thus approaching the pre-pandemic high when teh contributions were at 12.27 TN CNY, VisaGuide.World reports.
Although last year the effects of COVID-19 negatively affected the tourism sector in China, WTTC predicts that in 2023 it will create almost 11.5 million jobs, thus recovering one in two of the lost jobs during the pandemic to reach a total of 74.7 million jobs.
Based on WTTC data, by the end of this year the sector will be only ten percent below pre-pandemic levels. At the same time, international visitor spending in China will increase by up to 50 percent to reach more than 306 BN CNY. Despite the positive growth, this figure is still almost 70 percent below the peak of 2019.
Following the ongoing travel restrictions in China, in 2022 the sector’s GDP contribution dropped to nearly 30 percent reaching 3.9 TN CNY, accounting for just over three percent of the economy.
In addition, during 2019, the Travel and Tourism sector in China was worth 12.3 TN CNY, which represented almost 12 percent of the economy.
Compared to 2021, the year we left behind, the sector saw a decline in jobs to a lower level of 62.9 million jobs nationwide and one in 12 jobs across China.
International & Domestic Tourist Spending in China Was Low in 2022
Further data by WTTC also show that international visitor spending in China declined in 2022 by a total of 8.5 percent, remaining almost 80 percent below pre-pandemic levels.
Meanwhile, as regards the expenses of domestic visitors, they fell by 33 percent, remaining 67 percent below the levels of 2019.
Commenting on these data, WTTC President and CEO, Julia Simpson noted that as residents begin to travel again, a significant boost to the global travel and tourism sector is anticipated.
“The fact China has reopened is great news. In 2019 Chinese tourists represented 15 percent of international spending, and that figure is set to grow. We are urging governments to prioritize and streamline visa applications to ensure embassies can manage the high visa demand from Chinese residents,” Simpson also noted.
Most Tourists to China Come From 7 Countries
From 2019-2022, 74 to 77 percent of international visitors to mainland China came from the following destinations:
Hong Kong
Macau
Myanmar
South Korea
Japan
US
Vietnam
From all these source markets, in 2019 there were a total of 49.7 million arrivals, a figure which decreased last year by 85 percent to 7.2 million arrivals.
According to the forecast of the global tourism organization, by 2033, the sector will increase its contribution to GDP to almost 27 TN CNY, which represents 14 percent of the Chinese economy. It also claims to employ over 100 million people across the country.
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