A possible boost for the tourist sectors of the United States, Japan, South Korea, and Australia has come as China lifted its restrictions on group trips imposed during the Covid pandemic.
China's Ministry of Culture and Tourism made the announcement on Thursday, August 10, and it will take effect immediately.
China's Third Set of Approved Nations
According to Reuters, group trips were expected to account for almost 60% of the $255 billion in spending that mainland Chinese visitors racked up in 2019 before the virus hit.
Many companies throughout the world that rely on tourism have experienced financial difficulties as a result of the lack of customers since the outbreak.
While restrictions were eased for several nations, including Germany and the United Kingdom, Canada's recently tense political ties with China prevented them from being reinstated.
This was China's third set of approved nations. A total of 20 nations were included in the first group that was given the green light in January. This group includes countries like Thailand, Russia, Cuba, and Argentina. Among the 40 nations that made up the second group in March were Nepal, France, Portugal, and Brazil.
China has never explained why it delays licenses for certain nations while speeding them up for others, but experts have seen a correlation between political and trade friction between China and the countries that take longer to acquire clearance.
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Reactions From Tourism Sector
South Korean and Australian tourism ministries, as well as the Japanese prime minister, Fumio Kishida, praised the decision, saying it would be good for business.
Australia's Minister for Trade and Tourism, Don Farrell, called it another positive step towards the stabilization of their nation's relationship with China.
It is unclear how much Chinese outbound travel will increase for the most recent round of nations. After the borders were reopened in previous months, many people expected a surge in demand. However, this has not materialized thus far.
As of July, China's international air traffic has only rebounded to 53% of 2019 levels.
The domestic economy is faltering, and many Chinese tourists are reluctant to make large purchases while abroad because of this. And Visa processing times for Chinese visitors are long because of backlogs in many Western countries.
Yet, according to Trip.com, China's biggest travel operator, there was a sudden increase in interest in traveling to countries like Australia and Japan when the news broke.
Companies' shares in the most recent cluster of nations that are highly exposed to Chinese tourists' spending surged as a result of the announcement. Grand Korea Leisure and Paradise are two South Korean casino operators that had significant gains, increasing by 21% and 18%, respectively.
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