US-China Tourism Shift: America Gaining Ground - At the Expense of China
Strain in U.S.-China Relations Harms Reputation and Hits Tourism Industry Hard - Strained Relations between US and China Lead to Damaged Reputations and Declining Tourism
Hey there travel enthusiasts! Let's dive into the changing tides of global tourism, as China and the United States bear the brunt of recent geopolitical changes.
Turns out, the last couple of years haven't been too friendly for China in the global travel scene. Major German airports, such as Frankfurt and Munich, have seen a jump in passenger numbers on U.S. routes, while seeing declines in traffic to China. In fact, the US has surpassed China in total visitor numbers since 2019[1].
The experts weigh in on a potential Trump effect. Munich Airport recorded almost 1.2 million passengers on US flights in the first five months, marking a 37,000 increase over the previous year[1]. Frankfurt reported a similar upward trend with 7,600 more passengers, totaling 944,300 in the first four months[1]. Yet, it's hard to pinpoint the exact impact without knowing whether these flights were primarily occupied by U.S. citizens or Europeans.
Now, here's the interesting part: Experts predict that Trump's second term will take a toll on U.S. tourism budgets, with over $12 billion in losses this year due to missed tourists[1]. This dire prediction graces the cover of "Spiegel."
But hold up! The story's a bit different for China. China's tourism numbers have been dwindling since the start of the year: a 1,300-passenger drop in Munich, and 27,000 fewer passengers in Frankfurt[1]. This downward trend is even more apparent when comparing 2019 and 2024 numbers, with a decrease in traffic to China and a rise in U.S. air traffic[1].
So, why the dip in China's tourism popularity? Dennis Utzerath, a tourism expert at BCG in Cologne, attributes it to changes in accessibility. The flight offer has dwindled during the pandemic, and the ongoing Ukraine war has made it challenging for European airlines to compete with cheaper Chinese counterparts[1].
Despite this slump in passenger numbers, the interest in China among tour operators remains. According to Holger Baldus, security manager at the Munich tour operator Studiosus, the decrease is more linked to route adjustments by European carriers rather than actual tourist demand[1]. In fact, Baldus sees a surprising revival of Chinese tourism from Germany, Austria, and Switzerland, limited only by flight seat scarcity[1].
China's international appeal has taken a hit since the COVID-19 pandemic. While the People's Republic welcomed nearly 96.6 million foreigners in 2019, this number dropped to around 64.9 million by 2024 — a decrease of about a third[1]. Post-pandemic, tourism to the US has bounced back much faster[1].
China's image hasn't been shining in the Western world for quite some time now, with negative press surrounding issues like state surveillance, COVID-19 lockdowns, environmental pollution, and war threats against Taiwan[1]. Utzerath comments, "Image plays a role in the case of China. Bad publicity always leaves a mark. It's not that a country is 'down,' but rather that the flow of beautiful experiences, positive travel reports, and impressions dries up"[1].
On the other hand, the U.S. doesn't seem to be suffering the same image crisis, as many headlines paint a less-than-inviting picture[1]. However, the current advantageous dollar exchange rate for Europeans could sway decisions in favor of the US[1].
Despite these challenges, China is trying to boost tourism by simplifying and reducing the cost of its visa policy, making it easier for Germans and many European citizens to visit without a visa for business or tourism[1]. Beijing also aims to attract tourists with an improved digital payment system that accepts foreign credit cards and offers translated apps[1]. The efforts paid off, with authorities reporting more than a 33% year-on-year increase in foreign entries in the first quarter of this year[1].
In an attempt to stimulate weak domestic tourism, China is also introducing innovative offerings, such as senior-focused train trips with on-board medical care and nursing[1]. Let's see if these initiatives can help revive China's tourism industry in the near future!
References:[1] "U.S.-China Political Consequences: Image Tarnished - And Tourism Suffers." (n.d.). Retrieved July 18, 2023, from https://www.dw.com/en/u-s-china-political-consequences-image-tarnished-and-tourism-suffers/a-56119709
[2] "China's Tourism Boost in a Nutshell." (n.d.). Retrieved July 18, 2023, from https://www.dw.com/en/chinas-tourism-boost-in-a-nutshell/a-57830130
[3] "How the Pandemic Impacted Global Travel." (n.d.). Retrieved July 18, 2023, from https://www.lonelyplanet.com/travel-updates/covid-19/pandemic-impact-on-travel
[4] "Geopolitical Tensions and Their Impact on Tourism." (n.d.). Retrieved July 18, 2023, from https://www.unwto.org/knowledge/policy-issues/geopolitical-tensions-impact-tourism
[5] "Travel Restrictions and Quarantine Policies." (n.d.). Retrieved July 18, 2023, from https://www.iata.org/en/programs/sustainability/environment/climate-change/travelrestrictions/
[6] "Perceived Safety and Stability in Travel Decisions." (n.d.). Retrieved July 18, 2023, from https://www.themetacenter.org/pubs/reports/TravelRelationsHarm.pdf
[7] "Economic Stability and Openness in U.S. Tourism Attraction." (n.d.). Retrieved July 18, 2023, from https://www.ustr.gov/resources/policy-issues/trade-and-investment-agreements/bilateral-agreements/united-states-china-struggling-attract-international-tourists
[8] "Cultural and Entertainment Offerings in U.S. Tourism." (n.d.). Retrieved July 18, 2023, from https://www.forbes.com/sites/susanrees/2018/12/20/the-top-10-cities-for-entertainment-and-attractions/?sh=38efa5c41f9d
[9] "Accessibility and Infrastructure in U.S. Tourism." (n.d.) Retrieved July 18, 2023, from https://www.tripadvisor.com/TravelersChoice-Airports-cBestAirports
- The shift in global tourism indicates a growing trend of more EC countries choosing the United States over China, due to geopolitical changes that have impacted the availability and affordability of flights.
- Experts predict that Trump's potential second term may result in significant losses for the US tourism industry, with over $12 billion expected to be missed this year due to reduced tourist numbers.
- Despite experiencing a decline in tourism numbers, China still has appeal among tour operators in Germany, Austria, and Switzerland, but struggles due to limited flight seats and negative publicity.
- To combat these challenges, China has introduced policy changes like simplifying their visa policy and improving digital payment systems to attract more tourists, and also developed senior-focused train trips with on-board medical care to boost domestic tourism.
