Oliver Wyman On Why Chinese Consumers Prefer Domestic Travel
May 28, 2024
Chinese travelers are increasingly opting for cheaper domestic destinations over foreign tourist spots, CNBC reports.
According to a recent survey by Oliver Wyman, only 14% of high-income households (with monthly income of at least CN¥30,000, or US$4,140) that traveled internationally last year plan to go abroad again in 2024.
The top reason for preferring their home country was “abundant domestic travel options,” the survey found, followed by “too costly” international travel. The average cost per person for traveling within mainland China is less than CN¥1,000, versus several thousand yuan for a trip to Hong Kong or Japan, according to the survey.
During a public holiday this year from May 1 to May 5, domestic tourism trips and revenue surged versus pre-pandemic levels in 2019, official data showed. Within mainland China, smaller cities such as Yangzhou, Luoyang, Qinhuangdao, Guilin and Zibo saw the fastest growth in tourism bookings during the May holiday, Oliver Wyman said.
Chinese consumers’ current preference for domestic travel means that a full recovery in international travel to 2019 levels likely won’t come until late 2025, half a year later than previously forecast, according to Oliver Wyman.
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