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China lifts bans on group tours to US, Japan and other key markets

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Reporting by Casey Hall in Shanghai, Sophie Yu in Beijing and Joyce Lee in Seoul; Additional reporting by the Beijing newsroom, Kanishka Singh and David Shepardson in Washington and Doyinsola Oladipo in New York; Editing by Jamie Freed, Edwina Gibbs and Andy Sullivan

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Casey has reported on China's consumer culture from her base in Shanghai for more than a decade, covering what Chinese consumers are buying, and the broader social and economic trends driving those consumption trends. The Australian-born journalist has lived in China since 2007.

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Statement from u.s. secretary of commerce gina raimondo on chinese group travel designation, office of public affairs.

Today, U.S. Department of Commerce Secretary Gina Raimondo issued the following statement on the announcement that China will lift restrictions on group travel to the United States, in addition to other nations. The announcement is the result of continued engagement between U.S. Commerce officials and Chinese government representatives.

“Today’s action to restore the United States as an approved destination for Chinese group travel is a significant win for the U.S. travel and tourism industry and an important step forward to promote the type of people-to-people exchange that is crucial for our bilateral relationship. This has been the culmination of months of hard work between the U.S. Department of Commerce and the People’s Republic of China Ministry of Culture and Tourism. Before COVID, as many as 3 million Chinese travelers visited the United States annually, contributing more than $30 billion to the U.S. economy. We look forward to once again welcoming Chinese group travel to the United States.”

Why So Few Foreign Tourists Are Visiting China, Despite Lifted Pandemic Restrictions

P eak summer in China — the first in four years without harsh COVID restrictions: Tickets for attractions like the Forbidden City in Beijing are selling out in minutes. Streets are crowded and subway stations are even more packed than usual. Foreign tourists, however, are few.

For many, China is a step too far. The pandemic is gone, but the memory of how it was handled remains — images of deserted streets and barricaded buildings are hardly fodder for holiday brochures and tourism campaigns. Visa hassles, a lack of flights, idiosyncratic payment systems and the language barrier also limit China’s appeal to tourists from places such as North America and Europe. 

“If you go to the Forbidden City these days and find 20 or 30 foreigners, that would be a lot,” said Jay Li, a tour guide in China’s capital. “Most people come to China for business reasons and maybe tour around a bit. It’s certainly not comparable with the situation before COVID — foreign tourists are probably only about 20% of that level.”

More From TIME

Outbound limits.

Even a plan to increase international flights won’t result in a sudden rush of tourists, or bring numbers anywhere near to pre-pandemic levels when China received about 136 million visitors a year on average. China and the U.S. have agreed to raise the number of round-trip flights to 24 a week by the end of October. Previously, the number of weekly flights between the two was 340.

American Airlines Group Inc. told Bloomberg on Wednesday it would add three weekly flights between Dallas and Shanghai early next year.

China also just lifted a ban on group tours to overseas destinations including the U.S., Australia, the UK, South Korea and Japan, easing the door open for outbound travel. The effect of that is likely to be muted too, given a general hesitancy to travel abroad after the pandemic scarred the nation’s economy and psyche.

Read More: China’s Tourists Can Travel Again. Here’s Why the World Is Still Waiting for the Rebound

The main factor putting Chinese travelers off overseas trips is concern about safety in other countries, where they are fearful of getting an unfriendly reception, according to an April survey by Dragon Tail International. Also cited in polls by the company: health concerns, difficulty in getting documents such as visas, and the high cost. In the April survey, 58% of respondents said they either definitely wouldn’t leave mainland China in 2023 or were unsure about going abroad.

With the sluggish economy also putting the brakes on spending, Chinese are getting their travel fixes closer to home.

Liberated from the all-consuming virus restrictions, domestic air traffic is now above where it was before the COVID crisis and authorities expect the travel market to generate 5 trillion yuan ($700 billion) in revenue this year.

Beyond Beijing and Shanghai, popular destinations include Chengdu, Kunming, Hangzhou, Xian — home to the Terracotta Army — and Urumqi, capital of the Xinjiang region in the country’s northwest.

Inbound Deterrents

The concerns Chinese tourists have about traveling overseas are reflected the other way, for visitors coming into the country. A sense of distrust and caution developed over the pandemic as relations between China and other countries soured. 

A U.S. travel advisory recommends reconsidering travel to mainland China “due to the arbitrary enforcement of local laws, including in relation to exit bans, and the risk of wrongful detentions.”

Other nations have similar views. The Australian government says a high degree of caution should be taken in China, warning that authorities have detained foreigners on so-called national security concerns and that there’s a risk of “arbitrary detention or harsh enforcement of local laws, including broadly defined National Security Laws.”

The warnings have, unsurprisingly, dented enthusiasm. 

“The inflow of people into China is modest at the moment,” outgoing Mandarin Oriental Group Chief Executive Officer James Riley told Bloomberg News earlier this month. “There are some broader geopolitical tensions that are causing people to pause. It’s taking a little bit longer than it might otherwise have done.”

Air travel essentially dried up during COVID, which emerged in China in early 2020 and resulted in the world’s strictest border controls. It takes time to rebuild flight capacity from such unprecedented lows.

China’s three biggest carriers — Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp. — likely posted combined losses of almost 13 billion yuan in the first half of this year, according to HSBC Holdings Plc, even after the government finally abandoned its draconian virus containment policies. For the period from 2020 to 2022, losses amounted to close to 190 billion yuan for the trio.

Another factor making China daunting for visitors is the use of digital payment platforms that are unique to the country. Non-Chinese credit cards are rarely accepted, and it’s often difficult to even use cash. Most vendors — from street stalls to large department stores — only accept local payment systems such as WeChat Pay and Alipay.  

Barbara Kosmun, a Slovenia-based filmmaker, traveled to China this summer to meet friends and family working there. Kosmun last visited in 2019 and while she has shopped using WeChat Pay before so the setup wasn’t totally alien, it still proved difficult.

Read More: How China’s Digital Currency Could Challenge the Almighty Dollar

China’s digital payment system “seems more difficult than before COVID,” she said. After trying five times to upload a passport picture to reactivate her WeChat Pay account and still failing, Kosmun gave up and relied on friends to cover her costs.

The People’s Bank of China has said all businesses should accept cash, and WeChat Pay and Alipay have both recently pledged to improve links with foreign bank cards, but the hurdles needed to go through just to spend money is a source of frustration. 

“This WeChat thing makes me feel unwelcome,” Kosmun said. “China is the most convenient country in the world, provided you speak Mandarin, you have the right apps and you have a Chinese card.”

Without the local payment platforms installed on smartphones, it’s nigh on impossible to rent equipment such as bicycles to tour around a city. Local phone numbers are generally needed to book tickets for tourist attractions as well as ordering taxis and for other travel, while reserving train tickets can be a complicated process, especially for non-Mandarin speakers.

Getting visas can also be a challenge for many visitors to China, requiring going to an embassy or application center to queue — sometimes for several hours — and submit documents, and then returning days later to collect them. In Singapore, people have queued for more than 16 hours to get an appointment, the South China Morning Post reported . They are also costly — a visa for U.S. citizens is at least $185.

A post on Chinese website Zhihu.com from June was widely shared for highlighting that American tourists were choosing Southeast Asia and Europe while avoiding China due to the many hurdles they face there. 

“Unless you have very deep feelings for China, it is definitely not the first choice for travel,” it said.

—With assistance from Danny Lee and Xiao Zibang.

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China lifts bans on group tours to US, Japan and other key markets

By Casey Hall, Sophie Yu and Joyce Lee

BEIJING (Reuters) -China has lifted pandemic-era restrictions on group tours for more countries, including key markets such as the United States, Japan, South Korea and Australia in a potential boon for their tourism industries.

The decision was announced by China's culture and tourism ministry on Thursday, effective immediately.

Prior to the pandemic, mainland Chinese tourists spent more than any other country's tourists when abroad, clocking up a combined $255 billion in 2019 with group tours estimated to account for roughly 60% of that.

Their absence since the pandemic has led to financial troubles for many tourism-dependent businesses around the globe.

U.S. Commerce Secretary Gina Raimondo described the step as "a significant win" for the U.S. tourism industry and said it was the result of "months of hard work" between the U.S. Commerce Department and the Chinese culture and tourism ministry.

Germany and Britain were also among the countries for which restrictions were lifted but Canada, which has had especially politically fraught relations with China of late, was not reinstated.

It was China's third list of countries to receive approvals. The first batch approved in January included 20 countries such as Thailand, Russia, Cuba and Argentina. The second batch in March included 40 countries, among them Nepal, France, Portugal and Brazil.

China has never explained its staggered approach to approvals but analysts have noted that the countries taking time to gain approval have had more political and/or trade tension with the world's second-largest economy.

The move was also welcomed by Japanese Prime Minister Fumio Kishida as well as tourism ministers in South Korea and Australia, who said it would boost their economies.

"This is another positive step towards the stabilisation of our relationship with China," said Australian Trade and Tourism Minister Don Farrell.

Just how much outbound Chinese tourism will bounce back for the latest group of countries remains to be seen. Expectations that demand would come roaring back after borders were re-opened have to date been largely unfulfilled.

International flights in and out of China have recovered to only 53% of 2019 levels as of July.

That is in large part due to staffing issues for many global airlines that have limited the flying of more routes, slow visa issuance for Chinese travellers amid backlogs in many Western countries, and a sputtering domestic economy that is discouraging many holidaying Chinese from spending big.

In response to the news, some Chinese said online that they were less than enthusiastic about international trips.

"I don't want to go; I feel domestic travel is pretty good, such as the beautiful scenery in Xinjiang and the Northeast and the food is cheap," said one Weibo user with the handle @Chongshengshilangbushilang.

But others were more upbeat.

"Despite a cooling overall economy, 40% of (Chinese) people say they will spend more on travel," said Steve Saxon, a partner at McKinsey & Co. "People want to spend the money they've saved during COVID on international travel."

Trip.com, China's largest travel agency, noted that the news had led to a spike in searches for destinations including Australia and Japan. Those countries, along with several other Asian nations and the United States, are among the most visited by Chinese travelers.

"The opening of group travel from China to the U.S. is a significant milestone," said Adam Burke, head of the Los Angeles Tourism and Convention Board. "It's impossible to overstate the importance of Chinese tourism to Los Angeles."

Shares in firms in the latest group of countries with large exposure to Chinese travel demand jumped on the news. Gains for South Korean casino operators were particularly striking, with Grand Korea Leisure and Paradise surging 20% and 18% respectively on Thursday.

Two sources in South Korea's travel industry told Reuters it was the first time group tours from China would be allowed on a large scale since a 2016 dispute over Seoul's deployment of a U.S. missile defence system. China has never publicly acknowledged limiting group tours to South Korea.

(Reporting by Casey Hall in Shanghai, Sophie Yu in Beijing and Joyce Lee in Seoul; Additional reporting by the Beijing newsroom, Kanishka Singh and David Shepardson in Washington and Doyinsola Oladipo in New York; Editing by Jamie Freed, Edwina Gibbs and Andy Sullivan)

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China lifts bans on group tours to US, Japan and other key destinations

Advertisement.

BEIJING — China has lifted pandemic-era restrictions on group tours for more countries, including key markets such as the United States, Japan, South Korea and Australia in a potential boon for their tourism industries.

Travellers walk past an installation at Beijing Daxing International Airport in Beijing, China on April 24, 2023.

BEIJING —  China has lifted pandemic-era restrictions on group tours for more countries, including key markets such as the United States, Japan, South Korea and Australia in a potential boon for their tourism industries.

The decision was announced by China's culture and tourism ministry on Thursday (Aug 10), effective immediately.

Prior to the pandemic, mainland Chinese tourists spent more than any other country's tourists when abroad, clocking up a combined US$255 billion (S$343 billion) in 2019 with group tours estimated to account for roughly 60 per cent of that.

Their absence since the pandemic has led to financial troubles for many tourism-dependent businesses around the globe.

Germany and Britain were also among the countries for which restrictions were lifted but Canada, which has had especially politically fraught relations with China of late, was not reinstated.

It was China's third list of countries to receive approvals. The first batch approved in January included 20 countries such as Thailand, Russia, Cuba and Argentina.

The second batch in March included 40 countries, among them Nepal, France, Portugal and Brazil.

China has never explained its staggered approach to approvals but analysts have noted that the countries taking time to gain approval have had more political and/or trade tension with the world's second-largest economy.

The move was welcomed by Japanese Prime Minister Fumio Kishida as well as tourism ministers in South Korea and Australia, who said it would boost their economies.

"This is another positive step towards the stabilisation of our relationship with China," said Australian Trade and Tourism Minister Don Farrell.

Just how much outbound Chinese tourism will bounce back for the latest group of countries remains to be seen. Expectations that demand would come roaring back after borders were re-opened have to date been largely unfulfilled.

International flights in and out of China have recovered to only 53 per cent of 2019 levels as of July.

That is in large part due to staffing issues for many global airlines that have limited the flying of more routes, slow visa issuance for Chinese travellers amid backlogs in many Western countries as well as a sputtering domestic economy that is discouraging many holidaying Chinese from spending big.

In response to the news, some Chinese said online that they were less than enthusiastic about international trips.

"I don't want to go; I feel domestic travel is pretty good, such as the beautiful scenery in Xinjiang and the Northeast and the food is cheap," said one Weibo user with the handle @Chongshengshilangbushilang.

But others were more upbeat.

"Despite a cooling overall economy, 40 per cent of (Chinese) people say they will spend more on travel," said Mr Steve Saxon, a partner at McKinsey & Co. "People want to spend the money they've saved during Covid on international travel."

Trip.com, China's largest travel agency, noted that the news had led to a spike in searches for destinations including Australia and Japan.

Shares in firms in the latest group of countries with large exposure to Chinese travel demand jumped on the news. Gains for South Korean casino operators were particularly striking with Grand Korea Leisure and Paradise surging 21 per cent and 18 per cent respectively.

Two sources in South Korea's travel industry told Reuters it was the first time group tours from China would be allowed on a large scale since a 2016 dispute over Seoul's deployment of a US missile defence system. China has never publicly acknowledged limiting group tours to South Korea. REUTERS

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China-U.S. Travel Restrictions Are Easing, but These Hurdles Limit a Full Recovery

Dawit Habtemariam , Skift

August 13th, 2023 at 6:00 AM EDT

China lifting group tour restrictions and more flights to the U.S. represent real progress. But air service is still limited and visa backlogs remain.

Dawit Habtemariam

In just the past few days, there have been two key moves that ease restrictions for travel from China to the U.S. Tourism officials have been clear that the lifting of these restrictions is critical to a full recovery –though key hurdles remain. On Thursday, China lifted pandemic-era group tour restrictions for the U.S. and other key markets. Before the lift, Chinese travel agencies were banned from selling outbound group or package travel to the U.S.

And on Friday, the U.S. and Chinese governments agreed to double the number of weekly flights . Starting September 1, 18 weekly flights will be allowed. On October 29, that rises to 24 flights.

China was the U.S.’s top tourist market in terms of spending in 2019, Brand USA CEO Chris Thompson told Skift recently. The U.S. received nearly 3 million Chinese visitors that year, and these visitors spent $35 billion.

The latest moves may help bring them back. There have been only 12 weekly flights between the U.S. and China. Many Chinese travelers have resorted to taking flights from Seoul and Tokyo to get to the U.S., said Thompson.  “I think air service out of China is probably still 10% of what it was pre-Covid,” said Thompson. “Even the Chinese that want to travel, they have to go a different way.”

NYC Tourism + Conventions CEO Fred Dixon said dropping the restriction on group tours  was “a critical step forward in the market’s eventual comeback.” Dixon called the outbound group travel market the “missing piece” to China’s comeback .

That’s the good news.

But even with the air-service agreement, the number of flights is nowhere near the more than 150 that China and the U.S. had before the pandemic.

There’s also the worsening visa processing delay problem, according to the U.S. Travel Association. On average, Chinese travelers have to wait over four months at U.S. embassies to get an interview for a first-time visitor visa, up from 77 days in March . 

“China was a top three market for overseas visitation pre-pandemic, but steadily increasing visa wait times threaten our ability to recapture these highly valuable visitors,” said U.S. Travel Association President and CEO Geoff Freeman.  China’s economy is also a cause for worry. Unemployment was a record 21% for 16 to 24 year olds in June, and debt levels have risen. Consumers are hoarding cash, according to Reuters . “There are economic concerns in China,” said NYC’s Dixon.

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Tags: china , china outbound , u.s. , u.s. travel

Photo credit: Thai An on Unsplash Thai An / Unsplash

Outlook for China tourism 2023: Light at the end of the tunnel

China is now removing travel restrictions rapidly, both domestically and internationally. While the sudden opening may lead to uncertainty and hesitancy to travel in the short term, Chinese tourists still express a strong desire to travel. And the recent removal of quarantine requirements in January 2023 could usher in a renewed demand for trips abroad.

Domestically, there are already signs of strong travel recovery. The recent Chinese New Year holidays saw 308 million domestic trips, generating almost RMB 376 billion in tourism revenue. 1 China’s Ministry of Culture and Tourism. This upswing indicates that domestic travel volume has recovered to 90 percent of 2019 figures, and spending has bounced back to around 70 percent of pre-pandemic levels. 2 McKinsey analysis based on China’s Ministry of Culture and Tourism data.

This article paints a picture of Chinese travelers and their evolving spending behaviors and preferences—and suggests measures that tourism service providers and destinations could take to prepare for their imminent return. The analyses draw on the findings of McKinsey’s latest Survey of Chinese Tourist Attitudes, and compare the results across six waves of surveys conducted between April 2020 and November 2022, along with consumer sentiment research and recent travel data.

From pandemic to endemic

By January 8, 2023, cross-city travel restrictions, border closures, and quarantine requirements on international arrivals to China had been lifted. 3 “Graphics: China’s 20 new measures for optimizing COVID-19 response,” CGTN, November 15, 2022; “COVID-19 response further optimized with 10 new measures,” China Services Info, December 8, 2022; “China reopens borders in final farewell to zero-COVID,” Reuters, January 8, 2023. This rapid removal of domestic travel restrictions, and an increase in COVID-19 infection rates, likely knocked travel confidence for cross-city and within-city trips. Right after the first easing of measures, in-city transport saw a marked drop as people stayed home—either because they were ill, or to avoid exposure. Subway traffic in ten major cities in mainland China fell and then spiked during Chinese New Year in February. Hotel room bookings also peaked at this time.

Domestic airline seat capacity experienced a minor rebound as each set of restrictions was lifted—suggesting a rise in demand as airlines scheduled more flights. Domestic capacity fluctuated, possibly due to the accelerated COVID-19 infection rate and a temporary labor shortage. International seat capacity, however, continued to climb (Exhibit 1).

By Chinese new year, China was past its infection peak—and domestic tourism recovered strongly. For instance, Hainan drew 6.4 million visitors over Chinese New Year (up from 5.8 million in 2019) and visits to Shanghai reached 10 million (roughly double 2019 holiday figures). 4 China’s Ministry of Culture and Tourism. Overall, revenue per available room (RevPAR) during this period recovered and surpassed pre-pandemic levels, at 120 percent of 2019 figures. 5 STR data. Outbound trips are still limited, but given the pent-up demand for international travel (and the upswing in domestic tourism) the tourism industry may need to prepare to welcome back Chinese tourists.

Tourism players should be ready for this; the time to act is now.

A demand boom is around the corner—Chinese tourists are returning soon

Before the pandemic, Chinese tourists were eager travelers. Mainland China had the largest outbound travel market in the world, both in number of trips and total spend. 6 World Tourism Organization (UNWTO) Tourism dashboard, Outbound tourism ranking. In 2019, Mainland Chinese tourists took 155 million outbound trips, totaling $255 billion in travel spending. 7 China’s Ministry of Culture and Tourism. These figures indicate total outbound trips, including to Hong Kong and Macau. China is also an important source market for some major destinations. For instance, Chinese travelers made up 28 percent of inbound tourism in Thailand, 30 percent in Japan, and 16 percent of non-EU visitors to Germany. 8 United Nations World Tourism Organization (UNWTO) database.

Leisure travel was the biggest driver of China’s outbound travel, representing 65 percent of travelers in 2019. In the same year, 29 percent of travelers ventured out for business, and 6 percent journeyed to visit friends and relatives. 9 Euromonitor International database.

Our most recent Survey of Chinese Tourist Attitudes, conducted in November 2022, shows that Chinese tourists have retained their keen desire to explore international destinations. About 40 percent of respondents reported that they expect to undertake outbound travel for their next leisure trip.

Where do these travelers want to go?

The results also indicate that the top three overseas travel destinations (beyond Hong Kong and Macau) are Australia/New Zealand, Southeast Asia, and Japan. Overall, respondents show less interest in travel to Europe than in previous years, down from 7 percent to 4 percent compared to wave 5 respondents. Desire to embark on long-haul international trips to Australia/New Zealand increased from 5 percent to 7 percent, and North American trips from 3 percent to 4 percent since the last survey. The wealthier segment (monthly household income over RMB 38,000) still shows a high interest in EU destinations (13 percent).

There are stumbling blocks on the road to recovery

While travel sentiment is strong, other factors may deter travelers from taking to the skies: fear of COVID-19; the need for COVID-19 testing which can be expensive; ticket prices; risk appetite of destination countries; and getting a passport or visa.

Chinese travelers may favor domestic trips, even if all outbound travel restrictions are removed, until they feel it is safe to travel internationally. A COVID-19-safe environment in destination countries will likely boost travelers’ confidence and encourage them to book trips again. 10 “Long-haul travel barometer,” European Travel Commission, February 1, 2023.

Travel recovery is also dependent on airline capacity. Some international airlines might be slow to restore capacity as fleets were retired during COVID-19 and airlines face a shortage of crew, particularly pilots. Considering that at the time of writing, in April 2023, international airline seat capacity has only recovered to around 37 percent of pre-pandemic levels, travelers are likely to face elevated ticket prices in the coming months. For instance, ticket prices for travel in the upcoming holidays to popular overseas destinations such as Japan and Thailand are double what they were in 2019. 11 Based on Ctrip prices. Price-sensitive travelers might wait for ticket prices to level out before booking their overseas trips.

Chinese airlines, however, appear more ready to resume full service than their international counterparts —fewer pilots left the industry and aircraft are available. Chinese carriers’ widebody fleets are mostly in service or ready to be redeployed (Exhibit 2).

Moving forward, safety measures in destination countries will affect travel recovery. Most countries have dropped testing requirements on arrivals from mainland China, and Chinese outbound group travel has resumed but is still limited to selected countries.

Many Chinese travelers—maybe 20 percent—have had passports expire during the COVID-19 period, and China has not been renewing these passports. Renewals are now possible, but the backlog will slow travel’s rebound by a few months. 12 Steve Saxon, “ What to expect from China’s travel rebound ,” McKinsey, January 25, 2023. Furthermore, travel visas for destination countries can take some time to be processed and issued.

Taken together, these factors suggest that the returning wave of Chinese travelers may only gather momentum by the Summer of 2023 and that China’s travel recovery will likely lag Hong Kong’s by a few months.

Overall, China is opening up to travel, both inbound and outbound—all types of visas are being issued to foreign visitors, and locals are getting ready to travel abroad. 13 “China to resume issuing all types of visas for foreigners,” China Briefing, March 14, 2023.

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The returning chinese traveler is evolving.

Although Chinese travelers did not have opportunities to travel internationally over the past three years, they continued to travel domestically and explore new offerings. Annual domestic trips remained at around 50 percent of pre-pandemic levels, amounting to 8.7 billion domestic trips over the past three years. 14 China’s Ministry of Culture and Tourism. During this time, the domestic market matured, and travelers became more sophisticated as they tried new leisure experiences such as beach resorts, skiing trips, and “staycations” in home cities. Chinese travelers became more experienced as thanks to periods of low COVID-19 infection rates domestically they explored China’s vast geography and diverse experiences on offer.

Consequently, the post-COVID-19 Chinese traveler is even more digitally savvy, has high expectations, and seeks novel experiences. These are some of the characteristics of a typical traveler:

• Experience-oriented: Wave 6 of the survey shows that the rebound tourist is planning their trip around experiences. Outdoor and scenic trips remain the most popular travel theme. In survey waves 1 to 3, sightseeing and “foodie” experiences were high on the list of preferences while traveling. From waves 4 to 6, culture and history, beaches and resorts, and health and wellness gained more attention—solidifying the trend for experience-driven travel. Additionally, possibly due to the hype of the Winter Olympics, skiing and snowboarding have become popular activities.
• Hyper-digitized: While digitization is a global trend, Chinese consumers are some of the most digitally savvy in the world; mobile technologies and social media are at the core of daily life. COVID-19 drove people to spend more time online—now short-form videos and livestreaming have become the top online entertainment options in China. In the first half of 2022, Chinese consumers spent 30 percent of their mobile internet time engaging with short videos. 15 “In the first half of the year, the number of mobile netizens increased, and short videos accounted for nearly 30% of the total time spent online,” Chinadaily.com, 27 July 2022.
• Exploration enthusiasts: Chinese travelers are also keen to explore the world and embark on novel experiences in unfamiliar destinations. Survey respondents were looking forward to visiting new attractions, even when travel policies limited their travel radius. Instead of revisiting destinations, 45 percent of respondents picked short trips to new sites as their number one choice, followed by long trips to new sites as their second choice.

Consumers are optimistic, and travel spending remains resilient

McKinsey’s 2022 research on Chinese consumer sentiment shows that although economic optimism is seeing a global decline, 49 percent of Chinese respondents reported that they are optimistic about their country’s economic recovery. Optimism had dropped by 6 percentage points since an earlier iteration of the survey, but Chinese consumers continue to be more optimistic than other surveyed countries, apart from India (80 percent optimistic) and Indonesia (73 percent optimistic) (Exhibit 3). 16 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Chinese consumers are still keen to spend on travel, and travel spending is expected to be resilient. Wave 6 of the tourist attitude survey saw 87 percent of respondents claiming that they will spend more or maintain their level of travel spending. Moreover, when consumers were asked “which categories do you intend to splurge/treat yourself to,” travel ranked second, with 29 percent of respondents preferring travel over other categories. 17 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Against this context of consumer optimism, the wave 6 tourist attitude survey results shed light on how travelers plan to spend, and which segments are likely to spend more than others:

• The wealthier segment and older age groups (age 45-65) show the most resilience in terms of travel spend. Around 45 to 50 percent of travelers in these two groups will spend more on their next leisure trip.
• The wealthier segment has shown the most interest in beach and resort trips (48 percent). Instead of celebrating Chinese New Year at home with family, 30 percent of Chinese travelers in the senior age group (age 55-65) expect to take their next leisure trip during this holiday—10 percent more than the total average. And the top three trip preferences for senior travelers are culture, sightseeing, and health-themed trips.
• When it comes to where travelers plan to spend their money on their next trip, entertainment activities, food, and shopping are the most popular categories. These are also the most flexible and variable spending categories, and there are opportunities to up-sell—attractions, food and beverage, and retail players are well positioned to create unique and unexpected offerings to stimulate spending in this area (Exhibit 4).

Independent accommodation is gaining popularity

Overall, Chinese consumers have high expectations for products and services. McKinsey’s 2023 consumer report found that local brands are on the rise and consumers are choosing local products for their quality, not just for their cheaper prices. Chinese consumers are becoming savvier, and tap into online resources and social media to educate themselves about the specific details and features of product offerings. 18 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

Furthermore, 49 percent of Chinese consumers believe that domestic brands are of “better quality” than foreign brands—only 23 percent believe the converse is true. Functionality extended its lead as the most important criterion influencing Chinese consumers, indicating that consumers are focusing more on the functional aspects of products, and less on emotional factors. Branding thus has less influence on purchasing decisions. 19 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

These broader consumer sentiments are echoed in the travel sector. Chinese travelers pay attention to cost, but do not simply seek out the lowest prices. While 17 percent of wave 6 respondents are concerned about low prices, 33 percent are on the hunt for value-for-money offerings, and 30 percent prefer good discounts and worthwhile deals.

And consumer sentiment regarding local brands holds true for travel preferences. Independent travel accommodation continues to be the preferred choice for most respondents, increasing in share against international chain brand hotels (Exhibit 5). Almost 60 percent of respondents prefer independent accommodation such as boutique hotels, B&Bs, and Airbnb—an 8 percentage-point increase since 2020.

Local chain brand hotels remain stable, the favored accommodation for 20 percent of respondents. These hotels are seen as a more standardized option, and as most are located in urban areas, they target the budget traveler segment.

Opting for independent accommodation is not considered a trade down; Chinese travelers expect a high level of service. In particular, respondents in the wealthier segment picked independent options (57 percent) over international premium brands (27 percent).

Premium independent options for the wealthier segment are abundant, specifically in leisure travel. Setting up a premium brand hotel requires long-term construction periods and heavy capital investment. Small-scale boutique hotels or B&Bs, on the other hand, are more agile solutions that can ramp up in the short term. This may explain the abundance of premium independent offerings. For instance, in destinations such as Lijiang and Yangshuo, between seven and nine of the top-ten premium hotels listed on Ctrip are independent boutique hotels.

Premium independent accommodation’s strength lies in quality guest experience with a genuine human touch. The service level at premium independent establishments can even surpass that of chain brand accommodation thanks to the high staff-to-room ratio, which easily reaches 3:1 or even 5:1. 20 “Strategic marketing analysis of boutique hotels,” Travel Daily , June 3, 2015. For hotels in Xiamen, Lijiang, and Yangshou, Ctrip service ratings of premium independent hotels are all above 4.7, outperforming international chain brand hotels.

Travelers are becoming smarter and more realistic during hotel selection, focusing on fundamental offerings such as local features and value for money. Across all types of hotels, local features are one of the most important factors influencing hotel selection—even for chain brand hotels which have a reputation for mastering the standardized offering. On average, 34 percent of respondents report that local features and cultural elements are the key considerations affecting their choice of hotel.

Outbound Chinese tourists are evolving rapidly, becoming increasingly diverse in their travel preferences, behaviors, and spending patterns. Chinese travelers are not homogeneous, and their needs and preferences continue to evolve. Therefore, serving each group of tourists may require different product offerings, sales channels, or marketing techniques.

The path toward eco-friendly travel in China

How international travel and tourism can attract outbound chinese travelers.

China’s lifting of travel restrictions may cause some uncertainty in the short term, but a promising recovery lies ahead. Chinese tourists have maintained a strong desire to travel internationally and are willing to pay for this experience. They are also discerning and looking for high-quality accommodation, offerings, and service. As boutique hotels are becoming more popular, international hotel brands hotels could, for example, aim to stand out by leveraging their experience in service excellence.

With renewed travel demand, now may be the time for international travel and tourism businesses to invest in polishing product offerings—on an infrastructural and service level. Tourism, food and beverage, retail, and entertainment providers can start preparing for the rebound by providing unique and innovative experiences that entice the adventurous Chinese traveler.

Craft an authentically local offering that appeals to experience-driven Chinese travelers

Chinese travelers have suspended overseas trips for three years, and are now looking to enjoy high-quality experiences in destinations they have been to before. They also want to do more than shopping and sightseeing, and have expressed willingness to spend on offerings geared towards entertainment and experience. This includes activities like theme parks, snow sports, water sports, shows, and cultural activities. Authentic experiences can satisfy their desire for an immersive foreign experience, but they often want the experience to be familiar and accessible.

Designing the right product means tapping into deep customer insights to craft offerings that are accessible for Chinese travelers, within a comfortable and familiar setting, yet are still authentic and exciting.

Travel and tourism providers may also have opportunities to up-sell or cross-sell experiences and entertainment offerings.

Social media is essential

Social media is emerging as one of the most important sources of inspiration for travel. Short video now is a major influence channel across all age groups and types of consumers.

Tourist destinations have begun to leverage social media, and short video campaigns, to maximize exposure. For example, Tourism Australia recently launched a video campaign with a kangaroo character on TikTok, and overall views soon reached around 1.67 billion.

The story of Ding Zhen, a young herder from a village in Sichuan province, illustrates the power of online video in China. In 2020, a seven-second video of Ding Zhen turned him into an overnight media sensation. Soon after, he was approached to become a tourism ambassador for Litang county in Sichuan—and local tourism flourished. 21 “Tibetan herder goes viral, draws attention to his hometown in SW China,” Xinhuanet, December 11, 2020. Another Sichuan local, the director of the Culture and Tourism Bureau in Ganzi, has drawn visitors to the region through his popular cosplay videos that generated 7 million reviews. Building on the strength of these influential celebrities, visitor numbers to the region were said to reach 35 million, more than two-and-a-half times 2016 volumes. 22 “Local official promoting Sichuan tourism goes viral on internet,” China Daily, June 17, 2022; “The Director of Culture and Tourism disguises himself as a “Swordsman” knight to promote Ganzi tourism,” Travel Daily , June 17, 2022.

Online travel companies are also using social media to reach consumers. Early in the pandemic, Trip.com took advantage of the upward trend in livestreaming. The company’s co-founder and chairman of the board, James Liang, hosted weekly livestreams where he dressed up in costume or chatted to guests at various destinations. Between March and October 2020, Liang’s livestreams sold around $294 million’s worth of travel packages and hotel room reservations. 23 “Travel companies adapt to a livestreaming trend that may outlast the pandemic,” Skift, October 26, 2020.

Livestreaming is being used by tourism boards, too. For instance, the Tourism Authority of Thailand (TAT) collaborated with Trip.com to launch a new campaign to attract Chinese tourists to Thailand as cross-border travel resumed. The broadcast, joined by TAT Governor Mr Yuthasak Supasorn, recorded sales of more than 20,000 room nights amounting to a gross merchandise value of over RMB 40 million. 24 “Trip.com Group sees border reopening surge in travel bookings boosted by Lunar New Year demand,” Trip.com, January 13, 2023.

International tourism providers looking to engage Chinese travelers should keep an eye on social media channels and fully leverage key opinion leaders.

Scale with the right channel partners

Travel distribution in China has evolved into a complex, fragmented, and Chinese-dominated ecosystem, making scaling an increasingly difficult task. Travel companies need to understand the key characteristics of each channel type, including online travel agencies (OTAs), online travel portals (OTPs), and traditional travel agencies as each target different customer segments, and offer different levels of control to brands. It also takes different sets of capabilities to manage each type of distribution channel.

Travel companies can prioritize the channels they wish to use and set clear roles for each. One challenge when choosing the right channel partner is to avoid ultra-low prices that may encourage volume, but could ultimately damage a brand.

Meanwhile, given the evolution of the postCOVID-19 industry landscape and rapid shifts in consumer demand, travel companies should consider direct-to-consumer (D2C) channels. The first step would be selecting the appropriate D2C positioning and strategy, according to the company’s needs. In China, D2C is a complicated market involving both public domains (such as social media and OTA platforms) and private domains (such as official brand platforms). To make the most of D2C, travel companies need a clear value proposition for their D2C strategy, whether it be focused on branding or on commercial/sales.

Create a seamless travel experience for the digitally savvy Chinese tourist

China has one of the most digitally advanced lifestyles on the planet. Chinese travelers are mobile-driven, wallet-less, and impatient—and frequently feel “digitally homesick” while abroad. Overseas destinations and tourism service providers could “spoil” tech-savvy Chinese travelers with digitally enhanced service.

China’s internet giants can provide a shortcut to getting digital services off the ground. Rather than building digital capabilities from scratch, foreign tourism providers could engage Chinese travelers through a platform that is already being used daily. For example, Amsterdam’s Schiphol Airport provides a WeChat Mini Program with four modules: duty-free shopping, flight inquiry, information transfer, and travel planning. This contains information about all aspects of the airport, including ground transportation and tax refund procedures.

Alibaba’s Alipay, a third-party mobile and online payment platform, is also innovating in this space. The service provider has cooperated with various tax refund agencies, such as Global Blue, to enable a seamless digitized tax refund experience. Travelers scan completed tax refund forms at automated kiosks in the airport, and within a few hours, the refunded amount is transferred directly to their Alipay accounts. 25 “Alipay and Global Blue to make tax refunds easy for Chinese tourists,” Alizila, June 23, 2014.

Such digital applications are likely to be the norm going forward, not a differentiator, so travel companies that do not invest in this area may be left behind.

Chinese travelers are on the cusp of returning in full force, and tourism providers can start preparing now

With China’s quarantine requirements falling away at the start of 2023, travelers are planning trips, renewing passports and visas, and readying themselves for a comeback. Chinese tourists have not lost their appetite for travel, and a boom in travel demand can be expected soon. Though airlines are slow to restore capacity, and some destination countries are more risk averse when welcoming Chinese travelers, there are still options for Chinese tourists to explore destinations abroad.

Tourism providers can expect to welcome travelers with diverse interests who are willing to spend money on travel, who are seeking out exciting experiences, and who are choosing high-quality products and services. The returning Chinese traveler is digitally savvy and favors functionality over branding—trends suggest that providers who can craft authentic, seamless, and unique offerings could be well positioned to capture this market.

Guang Chen and Jackey Yu are partners in McKinsey’s Hong Kong office, Zi Chen is a capabilities and insights specialist in the Shanghai office, and Steve Saxon is a partner in the Shenzhen office.

The authors wish to thank Cherie Zhang, Glenn Leibowitz, Na Lei, and Monique Wu for their contributions to this article.

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China lifts pandemic-era ban on group tours to Japan

China lifted its COVID-19 pandemic ban on group tours to Japan on Thursday as well as 77 other countries, a move that's likely to provide a significant boost to Japan’s tourism industry.

“From now on, national travel agencies and online travel companies will resume operating outbound group tours and ‘air ticket and hotel’ business for Chinese citizens to relevant countries and regions,” China’s Culture and Tourism Ministry said Thursday.

Beijing had barred group tours to Japan since January 2020 at the onset of the COVID-19 pandemic. It is unclear when the first batch of Chinese group tourists will visit Japan since travel agencies need to make arrangements.

The latest list of countries to which China allows group tours also include South Korea, the United States, Australia and the United Kingdom. China has been gradually allowing group tours to other countries — a list that had grown to 60 as of Wednesday — after the Asian powerhouse ended its “zero-COVID'' restrictions late last year.

Japan, however, had not been part of the list, and the hospitality industry had been looking forward to the change of policy from Beijing.

Prior to the announcement, Yoshihiko Isozaki, deputy chief Cabinet secretary, said leaders of the two countries agreed last November to resume in-person exchanges between Japanese and Chinese citizens that had dampened during the pandemic.

“The government will continue to make efforts so that in-person exchanges become robust once again,” he said during a regular news conference.

In 2019, before the pandemic, about 9.6 million Chinese visitors came to Japan, where they spent some ¥1.77 trillion, or about a third of the total amount all foreign visitors spent in the country, according to the Japan Tourism Agency.

But there were only 594,600 Chinese visitors in the first half of this year, compared to 4.5 million during the same period in 2019. According to Dragon Trail International, a market research firm in China, Japan was ranked fourth among destinations Chinese travelers plan to visit this year, after Hong Kong, Macau and Thailand.

China has allowed individual travelers to visit Japan, but Tokyo has restrictions for issuing visas for individual tourists. Only researchers, students and those with a “certain level of financial capability” and their family members are allowed visas for up to 30 days.

This was a significant hurdle for ordinary Chinese tourists to travel to Japan. At present, the number of visa applications at the Japanese Embassy in China is about half the number seen before the pandemic, Kyodo News reported.

Stock prices for airlines and railway operators jumped in the Tokyo market following the news of China's pandemic ban being lifted.

Kotaro Toriumi, an aviation and travel analyst, said because of the weakening yen, many Chinese are eager to come to Japan to shop in places like Tokyo’s upscale Ginza district.

“Hotel prices may rise because of more Chinese tourists visiting Japan,” said Toriumi. “And there may not be enough hotels to accommodate them if the number rapidly increases.”

How quickly the numbers will return to pre-pandemic levels also depends on whether flights between the two countries increase and how many visas Japan issues for tour groups, he said.

“But it could be back to pre-pandemic levels in six months or so, around the Chinese New Year (early next year),” said Toriumi.

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China lifts restrictions on group tours for more countries

By DFNI Staff Writer in Asia/Pacific , Chinese , Latest News , Lead Stories August 14, 2023 Comments Off on China lifts restrictions on group tours for more countries

Mainland Chinese tourists spent more than any other country’s tourists when abroad, prior to the pandemic

China’s culture and tourism ministry announced on Thursday that the country has lifted pandemic-era restrictions on group tours for more countries, including the UK, US, Germany, Australia, South Korea and Japan, effective immediately.

It was the third list of countries to receive approvals. The first was in January and contained 20 countries including Thailand, Russia, Cuba and Argentina. The second list in March included 40 countries, among them Nepal, France, Portugal and Brazil.

Mainland Chinese tourists spent more than any other country’s tourists when abroad, prior to the pandemic, reaching a combined $255bn in 2019, and of that, group tours were estimated to account for around 60%.

However, expectations that demand would come surging back after borders were re-opened have been largely unfulfilled. International flights to and from China up to July 2023 have only recovered to 53% of 2019 levels, and Southeast Asian countries that were already accepting group tours haven’t seen a big increase of visitors. Meanwhile, some top global consumer brands are increasing their presence in China where they predict the shift to spending more money at home will last, and China’s economy is also a major headwind to overseas travel.

Despite these issues and cooling overall economy, according to a McKinsey & Co. Partner, 40% of (Chinese) people say they will spend more on travel as they want to spend the money they’ve saved during Covid on international travel.

The news led to a spike in searches for destinations including Australia and Japan, according to Trip.com, China’s largest travel agency. Those countries, along with several other Asian nations and the United States, are among the most visited by Chinese travellers.

(Sources: CNN Travel, Reuters, Bloomberg).

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China leaves Canada off list of countries approved for group tours

By Laura Osman, The Canadian Press

Posted August 16, 2023 5:26 pm.

OTTAWA — Canadians are missing out on major tourism revenue from Chinese visitors as Beijing leaves Canada off its list of approved travel destinations — a move that it is linking directly to Ottawa’s recent focus on alleged foreign interference.

China lifted a pandemic ban on group tours to countries last week including the United States and Australia, but tourists are still barred from group visits to Canada.

The change announced by China’s culture and tourism ministry on Aug. 10 has allowed Chinese and online travel agencies to book group tours and packages for Chinese tourists in 70 more countries all over the world.

Canada was quietly left off the list.

The snub is related to Canadian politicians’ recent focus on allegations of foreign interference by Beijing, as first reported by CBC News.

“Lately, the Canadian side has repeatedly hyped up the so-called ‘Chinese interference,'” the Chinese embassy in Ottawa said in a statement to The Canadian Press on Wednesday.

The embassy also expressed concern about an increase in “rampant and discriminatory anti-Asian acts and words” in Canada.

“The Chinese government attaches great importance to protecting the safety and legitimate rights of overseas Chinese citizens and wishes they can travel in a safe and friendly environment,” the embassy said. 

Allegations of foreign meddling in Canadian politics seized the federal government last spring following media reports earlier this year about claims China tried to interfere in the last two federal elections.

Opposition parties have been negotiating with the federal government for weeks to develop plans for a public inquiry into foreign interference after former governor general David Johnston resigned his short-lived position as a special rapporteur on the issue.

China has been gradually lifting restrictions on travel, and last week’s announcement marked the third batch of countries to be reinstated as approved destinations.

The first batch, which included Thailand and Russia, was approved in January. In March, 40 more countries were added to the list, including France and Brazil.

Among other countries added last week are the United Kingdom, Japan and Germany. 

Canada’s omission is another blow to a tourism industry that endured a serious struggle during the pandemic, said Beth Potter, president of the Tourism Industry Association.

While domestic tourism has rebounded somewhat, international travellers who bring new money into the economy are still not back in full force.

China was one of Canada’s fastest-growing tourism markets before the pandemic.

China’s embassy gave the association a heads up that Canada was unlikely to be reinstated as an approved travel destination this month, Potter said, leaving businesses to focus on other international markets to make up for the gap in visitors.

“When you’ve got a single market that that brings in so much value into our economy, then yeah, it’s going to have an adverse effect,” Potter said. 

In 2019, tourists from China spent more money in Canada than visitors from all other countries, and they represented the second-biggest group of travellers arriving via long-haul transportation. 

People from China spent an average of 44 nights when visiting Canada, data from Destination Canada show. 

Those travelling solely for vacation purposes, as opposed to those visiting friends and family, tended to spend about 15 nights on average, according to the Crown corporation, with tours and all-inclusive packages a popular booking choice.

“Visitors from China tend to stay a long time in our country,” Potter said.  

“They spend a lot of money. They spend about $1,300 a day. So you can understand if you did math that the economic impact to businesses across the country is quite significant.”

While Potter doesn’t blame the federal government for the impact its foreign policy has had on the tourism industry, the Tourism Industry Association has called on Ottawa to extend the deadline for businesses to repay their federal loans.

The federal government issued emergency loans to tourism and other businesses during the pandemic as travel restrictions kept visitors out of the country, but the association says they haven’t been able to recoup their losses. 

This report by The Canadian Press was first published Aug. 16, 2023.

Laura Osman, The Canadian Press

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US travel sector faces long wait for China tourism to hit 2019 highs

By Aishwarya Jain

(Reuters) - The U.S. travel sector will have to wait at least two more years for lucrative Chinese tourism to recover to pre-pandemic levels as slow growth and high costs in the Asian country keep its tourists away from America.

The slower-than-expected China travel rebound may further pressure earnings for hotel operators in the U.S. even as they grapple with normalizing domestic travel driven by persistent inflation.

"There was an expectation that as COVID restrictions eased, travel between the U.S. and China, especially tourist travel, would show large demand growth and a return at least to the pre-COVID levels. No such rebound has occurred," said Ryan Yonk, senior research faculty at American Institute for Economic Research.

China gradually began lifting travel-related restrictions from January 2023 and fully lifted group tour restrictions in August last year, but the resultant rise in Chinese arrivals to nearly 1.1 million remains 60% below 2019 levels, according to data from the U.S. National Travel and Tourism Office (NTTO).

That's largely because Chinese tourists are still grappling with an uncertain economy, prioritizing savings and turning to domestic travel or visiting nearby countries to save money.

The Asian American Hotel Owners Association (AAHOA), which represents about 20,000 U.S. hoteliers, said the decline in Chinese tourism has decreased revenue and profitability.

"This, in turn, has led to job losses and financial strain for employees and related workers who rely on international tourism for their livelihoods," the AAHOA said in a statement to Reuters.

Chinese tourists in the U.S. spent a whopping $15 billion in 2019, more than any other market, according the U.S. travel association.

International Trade Administration (ITA) data for 2023 shows that Chinese tourist spending, which stands at an average of $4,137 per visitor, is 123.6% above the average overseas tourist spending at $1,850 per visitor.

Tourists from China also spend about 30% of the total trip budget on accommodations and lodgings, ITA data shows.

The U.S. economy stands to gain $30 billion and 50,000 jobs if China returned to 2019 tourism levels, Commerce Secretary Gina Raimondo said last year.

Analysts have also said rising geopolitical tensions and the high cost of flying between the U.S. and China are weighing on travel as the number of flights between the two countries remains below pre-pandemic levels.

"The generally negative political climate between the U.S. and China does not help with tourism between the two countries," said Patrick Scholes, analyst at Truist Securities.

Nearby countries in Southeast Asia have incentivized Chinese visitors by lifting visa requirements.

Chinese arrivals to Thailand and Singapore jumped 1,187.1% and 942.2% in 2023, remaining below pre-pandemic levels but far higher than a 192.9% gain in the U.S.

While China's outbound tourism to the U.S. is expected to grow in 2024, it is expected to cross pre-pandemic levels only in 2026, the NTTO said.

A report from Economist Intelligence said the overall number of Chinese outbound travelers will remain short of pre‑pandemic levels until 2025.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Syamnath)

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Only 700 Americans are studying in China. Will the US lose a generation of experts?

• Deep Read ( 5 Min. )
• By Ann Scott Tyson Staff writer

April 23, 2024 | Beijing

The pandemic caused the number of U.S. university students in China to plummet from nearly 12,000 in 2019 to only 211 in 2022. U.S.-China tensions are keeping those numbers low, with only about 700 American students in mainland China today. 

The U.S. State Department recommends that Americans “reconsider” travel to China due to the arbitrary enforcement of local laws and the risk of wrongful detentions. The “Level 3” travel advisory – the second-highest warning category – is a “clear signal to general counsels at universities that they ought to reconsider their study-abroad programs in China,” says Scott Kennedy, senior adviser and trustee chair in Chinese business and economics at the Center for Strategic and International Studies, a think tank in Washington. 

Why We Wrote This

Persistent restrictions on U.S.-China travel have put would-be American study-abroad students in a tight spot – and they also risk robbing the United States of its next generation of China experts.

But the collapse of the U.S. student population in China also risks depriving the United States of its next cohort of China specialists, fluent in Mandarin Chinese, who can help navigate what is arguably the world’s most consequential political relationship, experts say. As the two countries engage in a wide-ranging competition, skillful management is critical to prevent conflict. 

“The U.S. really needs a new generation of China experts to understand China – whether friend or foe,” says Dr. Kennedy.

When Sam Trizza got the news last April that he’d won a prestigious Boren Fellowship for Chinese-language study, he literally leaped for joy, throwing a fist in the air.

But as he read the congratulatory letter, he felt a wave of disappointment. The Boren Awards had decided not to fund study in his destination country: China. Going to China anyway would mean turning down a $30,000 fellowship.

“It was very frustrating,” he says.

Mr. Trizza’s dilemma is just one example of the hurdles confronting American youth who want to study in China.

The pandemic shut China’s doors and caused the number of U.S. university students here to plummet – from nearly 12,000 in 2019 to only 211 in 2022. U.S.-China tensions are keeping those numbers low, with only about 700 American students in mainland China today.

The collapse of the U.S. student population in China risks depriving the United States of its next cohort of China specialists, fluent in Mandarin Chinese, who can help navigate what is arguably the world’s most consequential political relationship, experts say. As the two countries engage in a wide-ranging competition, skillful management is critical to prevent conflict. 

“The U.S. really needs a new generation of China experts to understand China – whether friend or foe,” says Scott Kennedy, senior adviser and trustee chair in Chinese business and economics at the Center for Strategic and International Studies (CSIS), a think tank in Washington. 

Beijing and Washington agree it will serve their interests to rebuild the ranks of U.S. students here. Decades of U.S.-China student and scholarly exchanges have brought huge benefits to both countries, such as pathbreaking research in science and technology. But whether they can remove key obstacles remains uncertain, given the intense focus in both capitals on national security.

A major inhibiting factor, says Dr. Kennedy, is “concerns about China’s domestic political environment and how that might affect the student experience.”

Mr. Trizza felt those concerns. Safety considerations drove the decision by Boren administrators to deny funds for China study, he learned. Meanwhile, worried relatives quizzed him about his plans. 

Despite the pressure, he chose China. He gave up the fellowship and enrolled last September in a master’s program at the Hopkins-Nanjing Center, part of the Johns Hopkins School of Advanced International Studies. 

“I came to China on my own because I knew it was important,” he says over coffee in a Beijing cafe during spring break. He pauses and turns sober. “And – I hate to say this – while Americans still can come to China.” 

Students face new hurdles

Zhao Gu Gammage, a junior at Haverford College in Pennsylvania, wanted to learn Chinese and see the country where she was born and lived until her adoption at the age of 11 months by an American couple. She, too, faced obstacles. 

Haverford required her to obtain special approval from a school board before she could even apply for China study – asking her to write a letter explaining her choice. 

“Colleges want to ... limit the liability as much as they can,” says Ms. Gammage. She’s the only member of her class of 400 to major in East Asian languages and cultures, and the first Haverford student in five years to study in China. “The last thing they want,” she says, “is a news headline saying something happened to their student in China.”

China’s government has tightened its grip domestically in recent years, using “exit bans” to stop some foreigners from leaving. It has heightened surveillance and political controls on university campuses, intensified internet censorship, and fortified the firewall that blocks Google, Facebook, LinkedIn, and other American social media. Ms. Gammage is excited to be living in Shanghai, but says she found the biometric scanning that is required to enter her university “very jarring.”

The U.S. State Department recommends that Americans “reconsider” travel to China due to the arbitrary enforcement of local laws, including in relation to exit bans, and the risk of wrongful detentions. The “Level 3” travel advisory – the second-highest warning level – is a “clear signal to general counsels at universities that they ought to reconsider their study-abroad programs in China,” Dr. Kennedy says.

Some U.S. universities have canceled their China study-abroad programs, redirecting students to Taiwan. For example, Dickinson College in Pennsylvania suspended its China program due to the Level 3 travel advisory. “If and when that advisory is changed, Dickinson will reevaluate,” spokesperson Craig Layne wrote in an email.

Still, there are signs of progress. 

Adam Webb, co-director of the Hopkins-Nanjing Center, says applications to the center are up. “I do get questions about security and arbitrary detentions,” he says, but notes that “we have never had that happen to the HNC community in 40 years.”

Stanford University approved a new pilot initiative this spring to bring 20 undergraduates to the Stanford Center at Peking University, relaunching its China program for the first time since the pandemic. “We had twice as many applicants as we had slots,” says Jean Oi, SCPKU director and William Haas Professor of Chinese Politics at Stanford. “We really believe in the importance of getting faculty and students to China to better understand China.”

A recent CSIS report by U.S. and Chinese academics, focused on rebuilding scholarly ties, recommended that Beijing and Washington accelerate talks to address the China travel concerns and enable the U.S. to adjust its advisory. 

U.S. Deputy Secretary of State Kurt Campbell said this month that changes to the travel advisory are “under active consideration,” acknowledging that it is “an inhibition” to academic exchanges. But, he added, “both sides are going to need to take steps. It’s not just the United States.”

“The best place for study abroad”

Over the past year, U.S. President Joe Biden and Chinese leader Xi Jinping have stressed the need to expand people-to-people ties – including student exchanges – as part of their drive to steady U.S.-China relations. 

During his U.S. visit last November, Mr. Xi said China is ready to invite 50,000 American youth to China on exchange and study programs over the next five years. In January, China launched the Young Envoys Scholarship to fund the programs, with the first group of U.S. students, from Lincoln High School in Tacoma, Washington, arriving in China in March. 

This summer, 87 undergraduates from seven U.S. colleges and universities will receive the Young Envoys Scholarships, which cover tuition, lodging, and a stipend to study in China. “There is real intention coming from the Chinese government to welcome U.S. students and faculty,” says Terry Brown, vice president for academic innovation and transformation at the 350-member American Association of State Colleges and Universities. The association is collecting applications and matching U.S. faculty-led student groups with Chinese schools. 

“I want to have evidence of the success of the program to encourage more institutions and faculty to participate,” Ms. Brown says.

U.S. students interviewed in China were largely upbeat about their experience.

For Emre Ozmemili, study in China was a dream sparked by a high school community-service trip to a Chinese village in 2019. Now on a semester at Shanghai’s Donghua University, Mr. Ozmemili is soaking up the city, its unique culture, and the Chinese language. “I am in love with Shanghai,” he says. “It’s the best place for study abroad.”

He ticks off things he likes – the clean streets; efficient transportation; tasty, inexpensive food; and friendly people. “People are very kind,” he says. “There’s a great sense of community. I love when you go out to eat and there is a Lazy Susan with gongkuai – public chopsticks,” he says. “It stands in sharp contrast with the individualistic mindset of the U.S.”

Mr. Trizza and Ms. Gammage are also enthusiastic about their programs here – and both are looking ahead to China-related careers.

“It’s so interesting – culturally, politically. Every day I learn something new,” says Mr. Trizza. “I like hearing their perspectives and hearing things that rub me the wrong way – that is where I learn.”

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Watch CBS News

California Governor Newsom launches abortion travel ban ad campaign in Alabama

By Dave Pehling

Updated on: April 22, 2024 / 1:41 PM PDT / CBS San Francisco

California Governor Gavin Newsom is taking aim at states considering abortion travel bans with the launch of a new ad campaign.

Newsom's Campaign for Democracy ad is set to air in Alabama starting Monday. The governor tweeted out the ad in a social media post Sunday morning.

Alabama’s abortion ban has no exceptions for rape or incest. Now, Republicans are trying to criminalize young women’s travel to receive abortion care. We cannot let them get away with this. pic.twitter.com/gHbYJYlEXk — Gavin Newsom (@GavinNewsom) April 21, 2024

The text with the video post reads, "Alabama's abortion ban has no exceptions for rape or incest. Now, Republicans are trying to criminalize young women's travel to receive abortion care. We cannot let them get away with this."

The 30-second commercial shows two nervous young women driving in a car passing a sign that reads "State Line 1 Mile." 

"We're almost there. You're gonna make it," the passenger tells the woman behind the wheel just before they hear a siren and are pulled over by a state trooper.

"Trump Republicans want to criminalize young Alabama women who travel for reproductive care," a voiceover says as the state trooper walks up to the car.

"Miss, I'm going to need you to step out of the vehicle and take a pregnancy test," the trooper says, waving a test stick in one hand. The next shot shows the driver leaning on the hood of her car as the trooper puts her in handcuffs.

"Stop them by taking action at RightToTravel.org ," the voiceover intones as the ad ends.

Alabama is currently weighing a bill that would make it a crime to help women travel outside the state in order to receive an abortion. The ad is part of a larger effort to combat travel bans across the United States. Newsom was behind a similar ad that ran in Tennessee.

The RightToTravel.org website says that those two states and Oklahoma are considering bills that ban minors from traveling out of state to get an abortion without parental consent, even if it's a case of incest or if there is abuse in the family.

It isn't the first action the governor has taken in the political battle over abortion since the U.S. Supreme Court overturned Roe v. Wade in June of 2022. Two days after the ruling, Newsom partnered with the governors of Oregon and Washington to issue a multi-state commitment promising to defend access to reproductive health care, including abortion and contraceptives.

In September of that year, he launched a billboard campaign in seven of the most restrictive anti-abortion states urging women seeking the procedure to come to California for treatment. He also signed more than a dozen new abortion laws  protecting women's reproductive rights and ordered the state to end its contract with Walgreens after the pharmacy giant  indicated it would not sell an abortion pill by mail in some conservative-led states . 

• Gavin Newsom
• Roe v. Wade

Dave Pehling started his journalism career doing freelance writing about music in the late 1990s, eventually working as a web writer, editor and producer for KTVU.com in 2003. He moved to CBS to work as the station website's managing editor in 2015.

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