Chinese tourism to Australia still in the doldrums after pandemic travel bans

Chinese tourism to Australia still in the doldrums after pandemic travel bans

During the fortnight before and after lunar new year, Mandy Ho, the manager of a hot air balloon business in Melbourne, has a lot of tasks to juggle.

Each morning, as long as the weather allows, her co-workers take Chinese visitors on helicopter rides from the Yarra Valley vineyards to the parklands on the outskirts of Melbourne. Translators ensure clear communication throughout the trip.

Reworded: Ho has dedicated several weeks to organizing tour groups and coordinating transportation for tourists from their hotels. She has also interacted with some of the tourists through the company’s Mandarin smartphone app, website, and Chinese social media platforms.

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However, there has been a change observed this year. Ho acknowledges that the number of Chinese tourists is still only half of what it was before the pandemic. This has greatly impacted Global Ballooning, which usually sees around half of its clients coming from the Chinese market.

Ho commented that he had anticipated a complete rebound this year since it marks the first year of being able to travel outside of the country for Chinese New Year. However, the recovery has been slower than their initial expectations.

A hot air balloon prepares to take off in Melbourne. The Chinese market accounts for about 50% of the clients of one Melbourne company.

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Other tourism operators are also dissatisfied with the slow return of Chinese tourists. According to data from Tourism Australia, only 102,000 Chinese tourists visited Australia in September 2023, whereas four years ago, the number was 688,000 for the same month.

Ho states that there are several underlying causes for this.

Due to a struggling economy, many individuals are opting to travel to visa-free destinations such as Singapore, Thailand, and Malaysia. This trend has been observed as the first opportunity for travel since the pandemic, with a preference for shorter flights.

According to data from Trip.com, there has been a 30% rise in Chinese travelers visiting countries in south-east Asia in the past few weeks compared to the same time period in 2019. The numbers also show an increase in bookings for trips to Hong Kong, Japan, and South Korea.

Due to Chinese tourists spending their money elsewhere, Ho and other tourism providers have been forced to come up with innovative solutions.

Ho explains that they made an effort to not solely rely on one source. Instead, they expanded their market and are now experiencing a return of customers from the United States, Taiwan, and Hong Kong this year.

“We have not reached a point of concern at this time.”

According to Peter Shelley, representing the Australian Tourism Export Council, an organization that represents tourism businesses, many of his fellow members are feeling let down but are not reacting with undue concern.

Shelley expresses that she believes we were all hoping for a bit more positive results, but acknowledges that it was not expected to be perfect. The hope was for around 75% success.

“Is this causing concern? I don’t believe anyone is in a panic at the moment. It’s still early on, and perhaps by the end of the year, we will resume 2019 levels.”

According to Shelley, a growing number of Chinese customers are becoming aware that Australia can be a costly destination to travel to via air. In the current month, approximately 170 flights are set to operate between China and Australia, accounting for 86% of the total number of flights in the same month two years ago.

The Australian government entity, Tourism Australia, which aims to encourage vacationing, understands the importance of the situation. In the year 2019, Chinese tourists contributed $12.4m to Australia’s economy. Despite projections by Oxford Economics that it may not happen until 2025-26, the agency is striving for a return to pre-pandemic levels of tourism by the end of this year.

According to a spokesperson from Tourism Australia, although China’s travel reopening was a year later than other markets, we have faith in its recovery as the market is steadily growing again.

Airline passengers make their way through Melbourne Airport in Melbourne

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However, there are experts who have expressed unease based on observational information over the last two weeks. Dr. Paul Stolk, an experienced educator in the field of tourism at Newcastle University, believes that this lunar new year provided valuable insight into the state of the Chinese market.

According to Stolk, this time frame is expected to show a high level of activity. The current period may provide valuable information on whether there will be a rebound in certain areas, such as major cities and popular regional locations.

“We have returned to our regular routine.”

The Great Ocean Road is a lengthy and curving route that runs along the southeastern coast of Victoria, with steep cliffs on one side. It is often crowded with tour buses carrying Chinese tourists. Signs along the roadside have long reminded these tourists to drive on the left side of the road.

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Prior to the pandemic, several restaurants located along this route in coastal towns offered menus in the Mandarin language. In light of repeated closures, numerous owners were optimistic that the return of Chinese tourists to the coast would assist in their economic recovery.

A coastal section of the Great Ocean Road, just outside Lorne. Chinese tourist numbers along the stretch have failed to recover post-pandemic.

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The general manager of Great Ocean Road Regional Tourism, Liz Price, recognizes that the Chinese tourism sector in the area has been slow to bounce back. However, she mentions that the recent weeks have shown some reasons for hope.

According to Price, there have been reports of an increase in numbers and growth in coaches from Melbourne taking day trips over the summer.

It is possible that the Australian government will be granting new group visas to Chinese tourists starting in September, which is why tourism expert Dr. Maneka Jayasinghe from Charles Darwin University predicts a rise in tourist numbers over the next few months.

Sally Cannon, owner of Apollo Bay Bakery located approximately 2.5 hours west of Melbourne, is positive about the future. Her bakery is known for being the birthplace of the scallop pie on the Great Ocean Road.

Cannon has observed that Chinese tourists have been visiting Lorne, closer to Melbourne, more frequently lately, unlike Ho. This trend has been noticed by other entrepreneurs in the area as well. Cannon remains optimistic about a further increase in the number of visitors.

Before the pandemic, Chinese tourists played a significant role in our business, according to Cannon. He adds that although we have been able to sustain our business in their absence in recent years, it is a pleasant sight to have them back.

“I have noticed that this year, following the Covid pandemic, things have felt more like they used to be before. I have a strong sense that this trend will continue.”

“It reminded me of a green signal.”

Like other parts of the Australian economic sector, there has been an effect on tourism due to political conflicts between Beijing and Canberra. However, experts have varying opinions on the extent of this impact.

According to Tom Parker, the head of the Australia China Business Council, the ongoing tensions could have influenced tourism figures until Prime Minister Anthony Albanese’s visit to Beijing in November. This marked the first trip by an Australian leader to China in seven years.

According to Parker, symbolism holds significance in China.

The journey was significant in China, representing a renewal of relations with Australia. It felt like a positive sign, even though it was not explicitly stated. The meeting between leaders conveyed a message.

According to Shelley, the effects of geo-political tensions would have been more evident if travel restrictions had not been in place during the pandemic.

“If this were discussed a few years prior, I believe the repercussions would have been significant,” stated Shelley. “Although the current administration has helped mitigate the situation, there may still be lingering tension.”

Ho is confident that the timeless beauty of the Australian landscape will continue to draw tourists from China, regardless of any political tensions. She only wishes they will not delay their visits for too long.

“It is highly likely that they will return,” stated Ho. “There are numerous reasons for them to do so. By the end of this year, I am confident that the figures will have risen.”

Source: theguardian.com