Why All Eyes Are on China and India to Shape Tourism's Future

09.10.2024 - 10:47 / skift.com / Taylor Swift / Peden Doma Bhutia / Puneet Chhatwal / Jane Sun

China’s travel sector is making a strong comeback, following a challenging period during the pandemic.

By the end of this year, outbound trips are expected to reach 130 million, closing in on pre-Covid levels. Meanwhile, Trip.com Group reports that its platform’s outbound hotel and air ticket bookings have surpassed 2019 numbers.

“Chinese travelers are back,” said Jane Sun, CEO of Trip.com Group, emphasizing that China’s outbound market is on track to become one of the largest again.

In 2019, Chinese travelers made 155 million trips, contributing around $255 million to global tourism. While the pandemic initially stalled this momentum, the market is rebounding swiftly, according to Sun.

Sun was speaking at the World Travel and Tourism Council’s Global Summit in Perth along with Puneet Chhatwal, managing director and CEO of Taj-parent Indian Hotels Company (IHCL). Sun and Chhatwal offered insights into the dynamics of India and China as part of the “Markets to Watch” panel.

The tourism world is watching two markets closely — India and China. With both countries representing vast populations, rising incomes, and an increasing appetite for travel, they are transforming the global tourism landscape. As China regains its position as a leading outbound travel market and India sees a surge in young, aspirational travelers, the potential is immense.

Sun outlined three emerging trends among Chinese travelers, which she termed the “Three Es”:

While opportunities are abundant, challenges remain. The first hurdle is visa access. “Visa-free travel has helped destinations like Singapore and Thailand see 200% growth over 2019 levels,” Sun highlighted, emphasizing the importance of simplifying visa processes to attract last-minute Chinese travelers.

Outbound visitors from China often have very short booking windows. More than 50% of Trip.com’s customers make domestic hotel reservations on the day that they check in, and 50% of customers make flight reservations the day before they fly with Trip.com, Sun said.

She further noted Middle Eastern countries like the UAE and Qatar, with eased visa processes, have seen growth surge by up to 300% compared to 2019 levels. Sun encouraged destinations to collaborate with the government to expedite visa-free policies, or even extend five- or ten-year visa options. “This would ensure that when travelers are making last-minute decisions, these destinations stand out,” she said.

Sun also cited that China itself is welcoming more foreign arrivals into the country through its visa-free policies. “Travel from the rest of the world into China has achieved three-digit growth,” she said.

The availability of direct flights is another issue. Although outbound flight capacity has recovered