- China’s economy has been a disappointment due to a weak housing market and a high rate of youth unemployment.
- The WSJ reports that only 52,000 tourists traveling on trips organized through travel agents visited China in first quarter.
- China’s slowing economy cannot be cured by a tourism sector in decline.
The second largest economy in the world is struggling. China has faced a variety of problems this year including a depressed real estate market, youth unemployment that is skyrocketing, and widespread concerns about deflation.
Analysts had predicted a growth rate of 6.3% for the second quarter, but it was only 6.3%.
China has a second problem. It seems that foreign tourists are still not returning to China despite the country reopening its doors after the pandemic in early this year.
The most recent figures available show that only 52,000 visitors arrived at the airport on trips organized through travel agents during the first three months of the year. The Wall Street Journal reported. This is 98% less than the same time period in 2019.
World Tourism Alliance is a Chinese tourism-research outfit. ReportingAfter China’s slow recovery from the pandemic, the tourism sector in the country was described as “distressed and depressed”.
For nearly three years, the country has been closed to all business travelers, tourists and even residents’ families due to the strict “zero-Covid” policy.
Journal says that deteriorating Western relations could be a contributing factor.
Late June is the time to look forward to. State Department warns AmericansIt is advised to “reconsider traveling to Mainland China because of the arbitrary application of local laws including the ban on exiting the country and the risk for wrongful detentions.”
In May, Xiao Qianhui a director at the China Tourism Association said that “the number of tourists from Europe, America and Japan are all declining, substantially.”
Bloomberg reported that China is much less dependent on tourism compared to other nations of the region, such as Thailand or Vietnam. The country has seen an 80% rebound in its outflows of tourists.
The economy will not be boosted by the absence of interest from abroad in visiting China.
Beijing has not yet intervened, despite being urged to do so by the United States to encourage a recovery in services and manufacturing to increase exports.
