China’s travel and tourism sector set to recover
New research from the World Travel & Tourism Council (WTTC) reveals the recovery of China’s travel and tourism sector has soared ahead of many major tourism markets such as France and the US, and ahead of the global recovery
Before the pandemic struck, China’s travel and tourism sector’s contribution to the nation’s GDP represented CNY11.5 trillion (11.6 per cent of the total economy). In 2020, when the pandemic brought international travel to a grinding halt, the sector’s contribution to the national economy fell by almost 60 per cent, representing a decrease of CNY6.9 trillion. However, according to the research, and based on the current rate of recovery, the sector’s contribution to the country’s GDP could see a year on year increase of 60.7 per cent this year.
This growth is almost twice the global average of 30.7 per cent and represents an annual increase of nearly CNY2.8 trillion. The data also reveals travel and tourism’s contribution to the country’s economy could see a further year on year rise next year of 40.4 per cent, representing an increase of nearly CNY3 trillion.
Bringing a positive outlook for jobs
Domestic spend is expected to grow by 75 per cent by the end of this year and experience a further year-on-year rise of more than a third (35.9 per cent) in 2022. However, while international spend, which is critical to the sector’s recovery, is set to grow by just 7.2 per cent in 2021, next year, when China’s border is expected to reopen to major source markets around the world, it could significantly outpace domestic spend with a rise of 94.3 per cent.
Julia Simpson, WTTC President & CEO, said: “Last year, the Covid-19 pandemic saw 16 million jobs lost from China’s Travel & Tourism sector. But the predicted rise in both international and domestic spend next year brings a positive outlook for both jobs and GDP.”