What the reopening of China’s border means for your business.
The recent Chinese government announcement of the removal of Covid-related travel and border restrictions for inbound and outbound travel is certain to have been a welcome Christmas present for many tourism operators around the world. From January 8, arrivals into China will no longer be subject to quarantine, removing the largest practical barrier to Chinese travelling abroad.
But this important policy change throws up a range of as yet unanswered questions. What does the end of Chinese quarantine mean in real terms? What needs to happen before we will see meaningful Chinese tourism return to our country? What can businesses do to ensure they are well placed to capitalise on a return of Chinese tourist?
The removal of quarantine on arrival in China essentially means that any Chinese citizen (or non-Chinese citizen with a valid Chinese visa) can enter the country without restriction. However, instead of immediately opening floodgates of Chinese tourists, there are a number of practical reasons why the return of Chinese travellers will be gradual rather than sudden:
Many Chinese citizens whose passports have expired over the past three years will need to reapply for new passports, as the Chinese government has significantly restricted passport issuance since 2020.
Chinese citizens must apply for visas to visit many western countries. While there are approximately 500,000 with valid New Zealand visitor visas, many potential visitors will sit outside this number and need to apply for a visa. Visa processing for many countries has proven to be slow post-pandemic.
Air capacity from China remains severely restricted. International flights from China are currently 8% of pre-pandemic levels and it will take time for airlines (both Chinese and international) to grow capacity. It is worth noting that for the week from Thursday 5 January, Auckland International Airport expects to have six passenger flight arrivals from China.
What is certain is there is huge pent-up demand in China for international travel. Destinations that make it easy for Chinese tourists to visit will see early success. Our view is that South East Asia will likely benefit most from the first wave of international travel, as its close proximity to China will enable air capacity to grow quicker, while shorter duration trips will be more practical initially. However, as it stands today, New Zealand’s policy to not require pre-departure testing from China will stand the country in good stead with both the Chinese public and government.
With the border reopening occurring close to the Chinese New Year holiday (January 21-27), we do not expect to see a significant up-tick in Chinese visitors for this year’s holiday. Rather, we expect to see a gradual increase in tourist volume over the coming months, likely reaching some semblance of pre-pandemic levels next summer.
That said, we will see more Chinese tourists wandering our streets over the coming weeks and months. It’s therefore important for local businesses to be ready to capitalise on the opportunities these valuable customers present. We have prepared a simple checklist for you to consider. The Flying Tiger team are specialists in sales and marketing targeting Chinese tourists, working with over 1,000 Australasian businesses prior to Covid. We operate the hugely successful South Alipay marketing programme. We are also the official marketing partner for WeChat Pay.
Our team is ready to support you as the Chinese market reopens. Here are some initial recommendations:
If you are a tourism operator, revisit your Chinese trade and marketing strategy. The Chinese travel trade and marketing landscape has changed significantly over the past three years. That’s why we have created a simple programme to help you revitalise your strategy to attract and convert Chinese tourists. Click here for more.
Confirm your acceptance of Chinese payments (Alipay and WeChat Pay) and ensure your business is ready to leverage the marketing opportunities that come with these two platforms. Both WeChat Pay and Alipay offer simple marketing tools, which can be managed on your behalf by Flying Tiger. Click here to learn about our Chinese payments marketing programme and register your interest to review your current status.
After three long years, we are excited for the return of Chinese tourists and we hope you are also. Our team is excited for the opportunity to support you to maximise this opportunity. If you have any questions, or would like to discuss any aspect of the Chinese tourist market, please do not hesitate to get in direct contact with the Flying Tiger team.