China’s travel industry is undergoing a significant transformation in the post-pandemic era. It used to be dominated by rigid group tours, but now it reflects a more diverse, experience-driven approach to tourism. Chinese travelers – especially younger generations – are seeking personalized, immersive, and flexible journeys shaped by economic changes, generational shifts, digital innovation, and the lingering effects of COVID-19. Meanwhile, policy reforms such as relaxed visas and global dynamics are reshaping inbound tourism in China.
In this report, I will provide a comprehensive analysis of these trends as of 2024–2025, examining changing consumer motivations, the impact of digital technology, recovery patterns in inbound and outbound travel, policy and geopolitical factors, structural industry changes, and examples of destinations adapting to new demands, without overlooking the international market to help contextualize China’s evolution.
The New Chinese Consumer: Motivations and Means
Chinese consumers are now more affluent and globally minded, yet their priorities are shifting. While the capitalist ethos of “work hard and get rich” once dominated, recent data suggest a rise in values centered around self-satisfaction, self-expression, and lifestyle quality. In urban centers like Beijing and Shanghai, these values have overtaken material wealth as primary motivators, especially among 18 – to 24-year-olds.
A recent survey indicates that 70% of Gen Z (born approximately 1997–2012) view travel as a primary reason to work, surpassing goals such as home ownership or starting a family. This reflects a generation eager to “live in the moment” and invest in experiences: on average, Chinese Gen Z respondents took three trips in the past year, allocating around 13% of their income (approximately HK$35,000) for travel . For many young people, the desire to “see the world” has eclipsed the previously near-universal goal of saving for property – particularly because skyrocketing real estate prices have made homeownership seem unattainable. In summary, China’s young workforce increasingly prioritizes “working to travel” rather than the reverse.
At the same time, income growth and distribution in China present a mixed picture that influences travel behavior. Overall household incomes have risen (per capita disposable income grew about 5% in real terms in 2024 ), yet income inequality and economic uncertainty temper consumer confidence. Surveys indicate that only a tiny fraction of Chinese people feel “very satisfied” with their income, and the Consumer Confidence Index remains subdued – around 86 in mid-2024, near historic lows and well below the neutral level of 100. This wariness stems from factors such as a property market slump and job concerns . As a result, some travelers passionately spend on luxury hotels and unique adventures, while others prioritize their budgets. This contrast is evident; some wealthy Chinese travelers enjoy tailored, premium experiences, while many budget-conscious travelers look for discounts and brief trips. Notably, Chinese consumers are cautiously selective with spending, yet travel has emerged as a favored category for splurging. In 2024, China’s real GDP grew by 5.0%, and retail sales of consumer goods rose by 3.5%, but travel-related spending rebounded even more sharply – for instance, air passenger traffic jumped by roughly 18% as mobility recovered. This suggests that after years of lockdowns, Chinese consumers (even those anxious about the economy) are willing to channel disposable income into travel and leisure experiences, making up for lost time.
The Impact of Digital Transformation and Mobile Technology
Digital innovation is also at the heart of China’s new travel boom. Chinese tourists rank among the most tech-savvy in the world, and mobile technology has transformed every aspect of their travel behavior, from planning to booking to navigating while on the road; smartphones and apps have become essential tools.
The widespread use of online travel agencies (OTAs) and super-apps allows travelers to arrange complex itineraries independently, reducing dependence on traditional tour guides. For example, apps like Ctrip (Trip. com), Fliggy, Mafengwo, and Qunar provide one-stop platforms for researching destinations, purchasing tickets, making hotel reservations, and even securing e-visas or translation services.
Social media and content platforms also play a significant role: young tourists increasingly draw inspiration from peers and influencers on apps like Xiaohongshu (RedNote) and Douyin (TikTok), favoring destinations trending online or endorsed by trusted content creators . In particular, user-generated videos, live streams, and travel vlogs spark ideas for “off-the-beaten-path” adventures that align with the youth’s desire for unique experiences.
Also, Automation and AI are significantly enhancing the travel experience, with many airports and hotels across China adopting facial-recognition check-ins, digital boarding passes, and robotic customer service. At the same time, Chinese travelers are accustomed to using self-service kiosks and mobile payment systems in nearly every setting, and a prime example of this digital transformation is the widespread use of self-check-in kiosks at Hong Kong International Airport and major tourist destinations in China embracing QR code ticketing and real-time app updates to manage crowds. Even when traveling abroad, Chinese tourists benefit from digital tools, with AI-powered translation apps helping bridge language gaps and mobile payment systems like UnionPay, Alipay, and WeChat Pay supporting cashless transactions in numerous countries, and many international merchants starting to accept Chinese mobile payments, simplifying outbound travel transactions.
In a way, Travel itself has become increasingly “smart,” with some Chinese online travel agencies (OTAs) experimenting with AI-driven itinerary planning to offer personalized trip suggestions based on user’s preferences and past behaviors, while attractions are integrating virtual reality (VR) previews and augmented reality (AR) guides, blending digital innovation with physical tourism, allowing even inexperienced tourists to navigate solo or in small groups with confidence, thanks to all the information and services they need at their fingertips.
As a result, traditional travel agencies must adapt to this new reality, and ultimately, China’s travel recovery is deeply tied to its digital ecosystem, as technology has made travel more accessible, efficient, and customizable than ever.
Inbound Tourism Recovery – Visa Reforms and Geopolitical Factors
After nearly three years of pandemic isolation, China’s borders have essentially reopened, and inbound tourism is rising. A crucial driver has been Beijing’s relaxation of visa requirements, making visits to China easier. In late 2023 and 2024, China dramatically expanded its unilateral visa-free entry programs. By the end of 2024, citizens from 38 countries can enter China visa-free for stays of up to 30 days, including major markets such as France, Germany, Italy, Spain, Malaysia, Japan, and several others . This policy shift- often through bilateral visa-waiver deals or unilateral trial programs- is a deliberate attempt to attract foreign tourists and business travelers back. For example, in December 2024, China added eight European countries and Japan to its visa-free list, supplementing those already benefiting from waivers, like Indonesia, Thailand, Russia, and more . It also extended transit visa exemptions: travelers from 54 nations transiting through China can now stay for 240 hours (10 days) without a visa, an increase from the previous limits of 72 or 144 hours. Crucially, the transit rule now allows for cross-regional travel – foreign visitors can arrive in one city and explore multiple designated provinces within those 10 days .
Visa facilitation measures have greatly boosted inbound tourism. In the first 11 months of 2024, China welcomed 29.22 million foreign visitors, a stunning 86.2% increase from last year, due to relaxed travel restrictions. Of these, 17.45 million utilized visa-free entry options, a remarkable 123% rise from the previous year . This growth reveals significant pent-up demand from international travelers eager to return to China. Additionally, social media has driven the popularity of short trips to China. For instance, spontaneous weekend getaways to Chinese cities have become trendy in neighboring countries post visa regulation easing. Media highlights include Koreans visiting Shanghai for vibrant “crazy Friday” nights and Thai tourists flocking to Chongqing, showcasing how lifted entry restrictions have positioned China as a prime destination for quick vacations.
Despite the revival of inbound tourism, challenges related to geopolitics and public perception persist. In recent years, geopolitical factors have complicated travel connections to China, and tensions between certain Western nations, combined with prior COVID-related skepticism, have resulted in a slow return of Western travelers. This can be seen throughout much of 2023 when flight availability was limited due to sluggish regulation approvals for foreign airlines in China. Even into late 2024, Chinese airlines were reinstating international routes, which were hindered by diplomatic tensions and issues arising from the Russia-Ukraine conflict affecting foreign operations . For instance, in 2023, U.S.-China flight routes constituted only a minor fraction of pre-2019 levels, affected by cautious bilateral relations. Likewise, travel between Japan and China experienced mutual hesitance, further exacerbated by issues such as the Fukushima water release. However, by 2024, travel largely resumed its former state. As a result, China has aimed to foster a welcoming image through various events, marketing initiatives, and safety reassurances to ease the lingering concerns of foreign tourists. Additionally, the profile of inbound tourists has notably shifted. Regional travelers are at the forefront of the recovery, with visitors from South Korea, Southeast Asia, and Russia among the first to return, thanks to geographical proximity and newly introduced visa waivers
Data on bookings reveals that in 2024, the United States, Canada, and Australia are ranked among the top five countries experiencing growth, showcasing sustained interest despite political challenges. Additionally, international visitors are increasingly venturing beyond Beijing and Shanghai, aided by a new 10-day transit visa that allows travel to inland provinces. Chinese authorities have noted an uptick in foreign tourists visiting culturally significant areas, including Shanxi for its historic architecture, Guizhou for its indigenous culture, and Jiangxi for its ceramics, all benefiting from these new policies. This trend suggests that the visa reforms are effectively enhancing tourism by drawing attention away from the major cities to lesser-known destinations.
Looking ahead, China aims to further broaden visa-free access and enhance tourist infrastructure to support the increasing number of visitors. In summary, inbound tourism to China is experiencing a remarkable rebound, rising from nearly zero to millions of tourists; however, fully restoring pre-2019 levels will depend on continued policy support and an international stability environment.
Outbound Tourism: A Strong Rebound with Evolving Priorities
Chinese outbound travel saw a notable rise in 2023–2024 as strict exit restrictions were removed. This surge can be attributed to the reopening of borders in late 2022 and fully by early 2023, leading to a wave of Chinese travelers engaging in “revenge travel. ”
In 2024, outbound travel from China experienced a remarkable resurgence, increasing by over 50% compared to the previous year. In the first half alone, approximately 60.7 million outbound trips were recorded—a 50.4% year-on-year rise—reaching nearly 75% of the volume seen during the same period in 2019. Industry forecasts anticipate that outbound tourism will recover around 90% of pre-pandemic levels by the end of 2024, with a full return of 2019 figures expected by mid-2025.
Yet, the profile of the Chinese traveler in 2024 has evolved significantly, with the pandemic experience having left a lasting impact, making safety, hygiene, and health top priorities. In particular, travelers are now more cautious about crowded places, and their flexibility during the trip has also become essential, with many opting for refundable bookings and creating itineraries that allow for last-minute changes.
Perhaps most notably, there is a clear shift toward more meaningful, experience-driven travel, with a decrease in conventional sightseeing or shopping in major cities while favoring culturally rich, less commercialized destinations. This evolving preference—confirmed by recent surveys and reports from travel agencies—reflects a more profound desire for authenticity, personal connection, and mindful exploration in the post-pandemic travel era.
For instance, instead of just focusing on well-known capitals or theme parks, young Chinese tourists are increasingly exploring niche experiences. These include visits to small towns recognized for their literary or cinematic importance, participation in local festivals, hiking in national parks, or taking international cooking classes.
Recent data from Golden Week highlights this trend: preferred activities include museum tours and exhibitions, traditional costume photography, forest hiking, fishing excursions, and even sailing – a rich mix of cultural and outdoor experiences that go beyond typical group tours. Another notable shift is the rise of independent travel. Traditionally, China has focused on group package tours, but in the post-pandemic era, self-guided travel is gaining popularity. In particular, younger generations prefer crafting their own itineraries using digital tools, as previously noted.
In 2023, China progressively permitted the resumption of group tours to multiple countries in phases. However, many travelers opted for solo adventures or small groups rather than waiting for traditional packaged tours. By late 2024, travel agencies observed that even when Chinese travelers engaged in tours, they desired greater flexibility and personalization. This shows that the era of rigid flag-following tour groups is waning; even older travelers are showing interest in semi-independent travel (e.g., joining a tour for part of a trip but having free days to explore). Statistics illustrate this fragmentation: although the number of Chinese travel agencies has nearly doubled since 2019 (to over 60,000, as entrepreneurs rushed into the market), the share of trips they organize remains low – individual travelers have become the dominant force. For instance, in one recent quarter, the number of participants in agency-organized domestic tours was still over 60% below 2019 levels, indicating that many Chinese prefer to travel without traditional tour packages.
Where are Chinese tourists traveling, and which markets are profiting?
After the initial wave of border reopenings, Asian destinations experienced the quickest recovery, primarily due to their geographic closeness and travel convenience; in particular, Southeast and East Asia firmly recovered their reputation as preferred regions among Chinese tourists, with Thailand, Japan, South Korea, Singapore, and Malaysia emerging as top choices.
Thailand particularly shone, thanks to a special visa-free entry initiative established for Chinese visitors in late 2023. This led, over the last year, the nation to welcome around 7 million Chinese tourists, with the second quarter of 2024 contributing to 13.8% of all outbound trips from China.
Japan observed a striking rebound in interest, especially among young Chinese travelers, whose search inquiries surged by 700%. Among those, Over 60% of participants indicated that Japanese cuisine was a major attraction, while the weakened yen enhanced Japan’s allure, making luxury shopping and premium accommodations more attainable.
On the other hand, South Korea’s resurgence has been driven by cultural interests rather than consumerism, thanks to the persistent influence of the Korean Cultural Wave; in particular, Chinese tourists are captivated and interested by K-pop and K-drama filming locations in Seoul and Busan, showcasing a shift toward engaging experiences.
However, long-distance travel from China is also gradually gaining traction, aided by the restoration of pre-pandemic flight operations. This can already be seen in late 2024 when significant numbers of Chinese travelers returned to Europe, particularly Italy, the UK, France, and Spain—approaching pre-2019 figures.
Beyond Asia and Europe, the Middle East—especially Dubai and the UAE—has emerged as a new hotspot for Chinese tourists. This is streamlined by visa processes and expanded flight routes that have heightened interest, combined with the region’s distinct luxury experiences, ranging from desert excursions to state-of-the-art architectural sites.
However, to fully comprehend China’s outbound tourism recovery, it must be contextualized globally. By the end of 2023, international tourism had rebounded to 90% of pre-pandemic levels, with a complete recovery expected by 2024. Conversely, China’s outbound recovery lagged somewhat behind due to its later border reopening in 2023, which resulted in lower travel numbers until 2024.
Nevertheless, by late 2024, China’s outbound tourism had emerged as one of the fastest-growing segments worldwide. With Travel bookings anticipated to nearly quadruple compared to 2023, significantly surpassing the global average. In this situation, Chinese travelers played a crucial role in driving record tourism figures for destinations like Thailand and the Maldives—countries that faced challenges from 2020 to 2022 due to the absence of this key market. But also Europe, which had mainly depended on intra-European and U.S. visitors, welcomed the return of Chinese tourists in 2024, particularly for luxury brands and high-end hospitality businesses.
China’s tourism revival has become a pivotal element in the broader global travel recovery. The Asia-Pacific area, boosted by Chinese demand, helped international tourism reach 98% of pre-COVID levels within the first three quarters of 2024. Looking forward, the World Tourism Organization predicts that by 2025, Chinese spending on outbound travel will exceed 2019 levels by around 21%, likely outpacing growth from the United States. This underscores the rising economic impact of Chinese tourists on the global tourism economy.
Yet, challenges remain. In 2023, many countries, especially the U.S. and Schengen area nations, faced significant visa processing delays due to high demand, resulting in extended wait times. This, coupled with ongoing geopolitical tensions surrounding technology and trade, also influences public sentiment, which may lessen interest in specific destinations.
Moreover, Chinese travelers are becoming more selective, with heightened expectations for personalized and smooth experiences, and destinations that cater to these shifting preferences—by providing Mandarin-speaking staff, accepting Chinese digital payment systems, offering mobile-friendly services, and observing cultural customs—are witnessing increased popularity and repeat visits. As the global travel landscape evolves, the ability to cater to this discerning traveler segment will be crucial for sustainable growth.
Structural Changes in China’s Travel and Hospitality Sector
The travel boom is occurring alongside significant structural changes in China’s tourism industry. The aftermath of the pandemic and evolving market forces have compelled companies to adapt or perish. Several key industry-wide trends and transformations are unfolding:
- Increased Competition Among Hotels: China’s hotel industry is undergoing growth and consolidation. A wave of construction by real estate developers has resulted in the emergence of numerous new hotels; however, this increase has not aligned with demand due to a sluggish economy. Consequently, key performance metrics like RevPAR, ADR, and occupancy rates have declined year-over-year after peaking in 2023, facing oversupply and standardization challenges. Mid-range hotels struggle to stand out, while budget hotels compete on price. The industry now faces a survival-of-the-fittest scenario, where only strong brands or innovative operators can thrive. Renovations are rising among hotels over ten years old to enhance appeal, but merely modernizing rooms isn’t enough; operators are adopting unique strategies and services to meet market needs. Many incorporate local culture, themed designs, or advanced technology to differentiate themselves. High-end hotels, in particular, have seen a downturn: the era of easy profits from rising room rates and property values has ended, with an increase in auctions and sales of luxury hotels
- Airline Recovery and Geopolitics: China’s aviation sector has rebounded unevenly, with Domestic air travel recovering first, nearing or surpassing pre-pandemic levels, driven by local tourism and business travel. In contrast, Chinese airlines like Air China and China Southern only regained international market share faster than foreign competitors due to governmental support for swift operational expansion. In particular, Foreign airlines have been hindered by bureaucratic challenges and geopolitical tensions, like trade disputes with the U.S. and the Ukraine conflict, complicating their return to China. The industry, in general, faces significant changes, including potential overcapacity on some domestic routes and insufficient capacity on certain international ones.
- Hotels vs. OTAs – A Fight for Bookings: The competition between hotels and online travel agencies (OTAs) has intensified, especially during the recovery of summer 2023, when many hotels saw high occupancy and pushed for direct bookings. However, as travel demand leveled off, hotels faced declining bookings, while OTAs like Trip.com Group grew
significantly. This creates an ongoing tension that sees hotels striving to reduce commission costs while at the same time relying on OTAs for visibility. Ultimately, this rivalry will likely continue, pushing both sides to innovate and potentially develop beneficial partnerships, with consumers enjoying this competition that offers more deals and options and an overload of promotional messages and loyalty programs vying for their attention.
- Travel Agencies Shift: The number of registered travel agencies in China grew from about 33,800 in 2019 to over 60,800 by mid-2024 . This increase is due to low entry barriers and a positive tourism outlook. However, agencies face challenges as traditional standard tour packages become less effective, with travelers prefer planning trips online. In particular, the pandemic has made consumers wary of pre-paying hefty tour fees due to cancellation risks, prompting them to book closer to travel dates or seek flexible options. Because of all of these challenges, many expect a wave of consolidations or closures as those who don’t adopt digital tools or differentiated services risk bankruptcy. Conversely, agencies transitioning to service providers or specializing in luxury custom trips, adventure tourism, and educational experiences can thrive by using social media for client engagement or partnering with online travel agencies.
- Corporate Restructuring and Layoffs: Major travel and hospitality companies in China have implemented substantial restructuring initiatives focused on cutting costs and improving operational efficiency . The pandemic has severely impacted the financial stability of the industry, and even with a continued recovery, growth levels are still lower than during the prosperous years of the 2010s. In particular, Large hotel groups and tourism conglomerates have enacted payroll reductions, closed underperforming units, and concentrated on their core competencies. Likewise, cruise operators, amusement parks, and attractions that had significantly increased their borrowing for expansion prior to the pandemic have since encountered the necessity for debt restructuring. This situation marks the beginning of a new era defined by careful financial management, as companies increasingly adopt a cautious investment strategy and focus on sustainable growth. At the same time, new entrants and start-ups have emerged with innovative business models, including online-only travel agencies and companies specializing in camping and outdoor tourism, thus intensifying the competitive pressure on established firms.
- Tourism Infrastructure and Challenges of’ Ancient Towns”: In China, the domestic tourism infrastructure faces both advancements and challenges, with many local governments having invested in facilities, such as airports and high-speed rail, enhancing scenic areas to prepare for an anticipated revival during a period of lower activity. However, some once-popular attractions are struggling to adapt. In particular, renowned “ancient towns” and cultural theme parks in China are seeing a dip in visitor numbers. Specifically, destinations like Lijiang, Dali, and Fenghuang, known for their picturesque historic areas, have faced excessive commercialization over the past decade, which has led visitors to seek more authentic or unique experiences. Travel trends for 2024 indicate that tourists prefer locations offering quality cultural experiences rather than those seen merely as tourist traps, and without strategic differentiation, many similar historic towns risk a decline . This scenario has sparked debates among local operators about balancing preservation, commercialization, and innovation. Additionally, some towns now host special events, such as lantern festivals and folk music concerts, while limiting visitor numbers to enhance the overall experience.
Conclusion
Between 2024 and 2025, China’s travel industry is undergoing a profound transformation, in particular, with the pandemic—despite its disruptive impact—acting as a catalyst for lasting change that is now redefining the nation’s tourism landscape and driving a new era of innovation and evolution within the sector.
For instance, we observe that Chinese consumers increasingly value experiences, personal development, and wellness more than just material wealth. This can be explicitly seen in the younger generations, where the idea of “exploring the world” has gained equal importance to material success. This trend has been fueled by rising income levels and growing consumer confidence (Before the pandemic), which encouraged travelers to choose both adventurous and budget-friendly experiences. Furthermore, digital innovation has also played a crucial role; technological advancements, specifically, have enabled Chinese travelers to become more independent and seek greater convenience, prompting travel providers to enhance their technological capabilities.
Outbound travel is also approaching pre-pandemic levels as Chinese travelers express enthusiasm for reconnecting with global destinations, all while introducing stricter expectations for safety, flexibility, and authenticity, which drive fundamental transformations in the industry as it adjusts to this new reality.
Driven by the need for transformation, companies are consolidating and innovating; hotels are pursuing new competitive advantages; airlines are addressing complex geopolitical challenges; and agencies are redefining their roles. Stakeholders also emphasize more agility, customer-focused services, and sustainable practices, underscoring that adapting to contemporary trends is both beneficial and necessary.
Globally, China’s travel rebound offers a significant opportunity for various industries, and if no unexpected challenges arise, by 2025, China is poised to reclaim and possibly enhance its position in international tourism, with the World Travel & Tourism Council predicting that Chinese outbound spending will rank first globally.
Domestically, travel is also anticipated to continue driving economic growth, bolstered by measures such as travel subsidies and infrastructure investments that will enhance citizens’ quality of life. However, challenges lie ahead, including economic uncertainties, international relations, and competition that will test the industry. Still, the adaptability demonstrated thus far provides a glimmer of hope.
Ultimately, China’s travel industry has not only recovered from the pandemic but has also evolved: it is now more digital, diverse, and aligned with the values of a new generation of travelers. In the coming years, stakeholders involved in this transformation will discover numerous opportunities, fueled by the adventurous spirit of Chinese travelers, poised to significantly reshape the tourism landscape both locally and globally.
Webliography https://hbr.org/2006/03/inside-the-mind-of-the-chinese-consumer
https://sekkeidigitalgroup.com/chinese-gen-z-tourists/#:~:text=Paid%20Digital%20Advertise ments
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