Page 382 - 2021 White Paper
P. 382
1 White Paper on the Business Environment in China
Background within the Schengen region in Europe can also
travel between European countries. In November
More than 637 million people traveled within 2019 more than ten million Chinese travelled
China in early October 2020 in celebration of the abroad and other source markets also sent out
country’s annual “Golden Week.” The government millions on international business and leisure
estimated domestic travelers generated around trips. However, it is important to notice that the
466 billion RMB (US$68.6 billion) in tourism often-cited ‘light at the end of the tunnel’ looks
revenue during the holiday period. Two holidays very much like a Chinese lantern (FTNnews).
converged in 2020: National Day, which celebrates
the founding of the People’s Republic of China on Airlines
Oct. 1, 1949, and the Mid-Autumn Festival, which
is set by the lunar calendar. As a result, the usual The country’s aviation capacity has snapped
week-long holiday was expanded to eight days, back to more than 90% of pre-pandemic levels,
making Golden Week the longest holiday period but the sector is still working hard to recover from
of the year. While less than 782 million tourists the first half of the year, which saw the number of
traveled during Golden Week in 2019, China domestic tourists dropping 62% to 1.17 billion on
celebrated the estimates as a rebound for its year, and tourism revenue plummet 77%. During
domestic travel industry (Pitelli). the pandemic, self-rescue became the buzz word
for travel companies which turned to live-stream-
Nevertheless, China’s domestic tourism revenue ing to hawk deals or came up with suburban travel
is expected to fall by 52% to 2.76 trillion RMB packages and promotion campaigns to encourage
(US$394 billion) in 2020 as the industry continues consumers to travel. China’s lower tier cities had in-
to reel from the impact of the coronavirus crisis. creasingly become a popular choice for local tour-
China’s Ministry of Culture and Tourism said that ists, and they have contributed a larger proportion
it expected the number of domestic tourists to fall to domestic tourism consumption (Reuters, China’s
by 43% to 3.43 billion in 2020. China, where the domestic travel). Notably, the historic Yellow Crane
coronavirus first emerged late last year, introduced Tower in Wuhan, the city where COVID-19 first
strict lockdowns and measures to curb its spread broke out, ranked No. 1 on Trip.com’s list of most
which are seen to have largely worked, as the sought-after tourist sites for the October 2020 holi-
country has largely reopened its economy and day, followed by Shanghai’s Disneyland, and Xi’an’s
allowed normal life to resume (Reuters, China’s Terracotta Warriors. Travel demand for Wuhan
domestic travel). The first major test of China’s underscores Chinese tourists’ confidence in their
travel recovery came in late spring, when China country’s handling of the pandemic and bodes well
opened up leisure travel during its May Day holiday, for China’s battered domestic travel industry. At
and some 80 million Chinese travelers took trips the same time, the Chinese government warned its
around the country. In July, China loosened travel citizens about the coronavirus risks of internation-
restrictions further and reopened cross-province al trips, meaning Chinese tourists may continue to
tourism, considered a final push to get the industry put off overseas travel, even as reopened countries
back to normal (McGregor). try to woo them (McGregor).
China reclaimed its top travel destination Looking ahead, the Chinese aviation industry
in the world in 2020 with 18 million Chinese will need an additional 8,600 new aircraft within
international trips, most of which however two decades according to aircraft manufacturer,
happened in January, representing about 10% of Boeing. Despite COVID-19, this estimate is 6.3%
the number for 2019. Travelers from Mainland higher than Boeing's previous prediction of 8,090
China were responsible for more than a million planes in 2019. Such demand would be worth
border crossings, with the Special Administrative US$1.4 trillion based on list prices, Boeing said
Region Macau as main destination. However, in a statement. In October, Boeing cut its 20-year
a number of other countries in Asia welcome forecast for global airplane demand due to the
Chinese visitors again, including Thailand, Laos, COVID-19 pandemic. While COVID-19 has severely
Japan, Singapore and others. Chinese citizens
382
Background within the Schengen region in Europe can also
travel between European countries. In November
More than 637 million people traveled within 2019 more than ten million Chinese travelled
China in early October 2020 in celebration of the abroad and other source markets also sent out
country’s annual “Golden Week.” The government millions on international business and leisure
estimated domestic travelers generated around trips. However, it is important to notice that the
466 billion RMB (US$68.6 billion) in tourism often-cited ‘light at the end of the tunnel’ looks
revenue during the holiday period. Two holidays very much like a Chinese lantern (FTNnews).
converged in 2020: National Day, which celebrates
the founding of the People’s Republic of China on Airlines
Oct. 1, 1949, and the Mid-Autumn Festival, which
is set by the lunar calendar. As a result, the usual The country’s aviation capacity has snapped
week-long holiday was expanded to eight days, back to more than 90% of pre-pandemic levels,
making Golden Week the longest holiday period but the sector is still working hard to recover from
of the year. While less than 782 million tourists the first half of the year, which saw the number of
traveled during Golden Week in 2019, China domestic tourists dropping 62% to 1.17 billion on
celebrated the estimates as a rebound for its year, and tourism revenue plummet 77%. During
domestic travel industry (Pitelli). the pandemic, self-rescue became the buzz word
for travel companies which turned to live-stream-
Nevertheless, China’s domestic tourism revenue ing to hawk deals or came up with suburban travel
is expected to fall by 52% to 2.76 trillion RMB packages and promotion campaigns to encourage
(US$394 billion) in 2020 as the industry continues consumers to travel. China’s lower tier cities had in-
to reel from the impact of the coronavirus crisis. creasingly become a popular choice for local tour-
China’s Ministry of Culture and Tourism said that ists, and they have contributed a larger proportion
it expected the number of domestic tourists to fall to domestic tourism consumption (Reuters, China’s
by 43% to 3.43 billion in 2020. China, where the domestic travel). Notably, the historic Yellow Crane
coronavirus first emerged late last year, introduced Tower in Wuhan, the city where COVID-19 first
strict lockdowns and measures to curb its spread broke out, ranked No. 1 on Trip.com’s list of most
which are seen to have largely worked, as the sought-after tourist sites for the October 2020 holi-
country has largely reopened its economy and day, followed by Shanghai’s Disneyland, and Xi’an’s
allowed normal life to resume (Reuters, China’s Terracotta Warriors. Travel demand for Wuhan
domestic travel). The first major test of China’s underscores Chinese tourists’ confidence in their
travel recovery came in late spring, when China country’s handling of the pandemic and bodes well
opened up leisure travel during its May Day holiday, for China’s battered domestic travel industry. At
and some 80 million Chinese travelers took trips the same time, the Chinese government warned its
around the country. In July, China loosened travel citizens about the coronavirus risks of internation-
restrictions further and reopened cross-province al trips, meaning Chinese tourists may continue to
tourism, considered a final push to get the industry put off overseas travel, even as reopened countries
back to normal (McGregor). try to woo them (McGregor).
China reclaimed its top travel destination Looking ahead, the Chinese aviation industry
in the world in 2020 with 18 million Chinese will need an additional 8,600 new aircraft within
international trips, most of which however two decades according to aircraft manufacturer,
happened in January, representing about 10% of Boeing. Despite COVID-19, this estimate is 6.3%
the number for 2019. Travelers from Mainland higher than Boeing's previous prediction of 8,090
China were responsible for more than a million planes in 2019. Such demand would be worth
border crossings, with the Special Administrative US$1.4 trillion based on list prices, Boeing said
Region Macau as main destination. However, in a statement. In October, Boeing cut its 20-year
a number of other countries in Asia welcome forecast for global airplane demand due to the
Chinese visitors again, including Thailand, Laos, COVID-19 pandemic. While COVID-19 has severely
Japan, Singapore and others. Chinese citizens
382
