‘China’s tourism sector set to recover by 60% this year’

Trael Biz News —

The recovery of China’s travel and tourism sector has soared ahead of many major tourism markets such as France and the U.S., and ahead of the global recovery , according to a new research of World Travel & Tourism Council (WTTC).

China’s travel and tourism sector’s contribution to the nation’s GDP represented CNY 11.5 trillion (11.6 per cent of the total economy) before the COVID pandemic.

“In 2020, when the pandemic brought international travel to a grinding halt, China’s Travel & Tourism sector’s contribution to the national economy fell by almost 60%, representing a decrease of CNY 6.9 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 CNY 2.8 trillion.

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 CNY 3 trillion, WTTC said.

“Domestic spend is expected to grow by 75% by the end of this year and experience a further year on year rise of more than a third (35.9%) in 2022.”

Similarly, employment growth is set to rise by a minimal 3.6 per cent in 2021. Employment growth could experience a more positive increase next year of 17.7 per cent, reaching more than 80 million jobs in 2022, just 1.9 per cent below pre-pandemic levels.

“Last year, the COVID-19 pandemic saw 16 million jobs lost from China’s tourism sector. But the predicted rise in both international and domestic spend next year brings a positive outlook for both jobs and GDP ,” said Julia Simpson, WTTC President & CEO.

According to the research, the sector’s contribution to the country’s GDP and the rise in jobs could be more positive this year and next, if five vital measures are met by governments around the world.

These measures include allowing fully vaccinated travellers to move freely, irrespective of their origin or eventual destination.

Secondly, the implementation of digital solutions which enable all travellers to easily prove their COVID status, in turn speeding up the process at borders around the world.

Thirdly, for safe international travel to fully restart, governments must recognise for all vaccines authorised by WHO.

Fourthly, continued support of the COVAX/UNICEF initiative to ensure equitable distribution of vaccines around the world.

Finally, the continued implementation of enhanced health and safety protocols, which will underpin customer confidence.

If these vital measures are followed before the end of 2021, research shows the impact on the economy and jobs across China could be considerable.

The sector’s contribution to GDP could rise by 71.3% (nearly CNY 3.3 trillion) by the end of this year, and a further year on year rise of 43.3% (CNY 3.4 trillion) in 2022.

Domestic spend could increase by 85.2% this year, followed by a 37.9% growth in 2022.

International spend could rise 23.6% in 2021 and could experience a substantial year on year boost of 103.2% next year.

Employment could see a 10.5% rise this year, and a year on year increase of 20.1% in 2022, which would see the number of those employed in the sector eclipse pre-pandemic levels by more than 5.5 million , according to London-based WTTC research.

Dec 22 , 2021 Photo : WTTC