Chinese Tourism Restart in Australia Hindered by Politics and Costs

In February, the first full month since China’s border reopening, Australia welcomed 40,430 short-term Chinese visitors, according to government data. This figure represents one-fifth of the number of visitors recorded in the same month in 2019 and is significantly lower than visits from New Zealand, the United Kingdom, and the United States.

Causes of the Decline in Chinese Tourism in Australia

Flights between mainland China and Australia were only at one-fifth of their pre-pandemic capacity in February, according to aviation analytics firm Cirium, due to rising fuel costs and declining demand. Additionally, China’s total outbound border crossings had reached two-thirds of pre-pandemic levels, according to the Chinese Outbound Tourism Research Institute, a Germany-based advisory group.

Beijing did not provide a reason for ending Australia’s ADS status, but travel industry professionals believe that geopolitics played a role, with relations strained due to trade disputes and increasingly strident security rhetoric between the West and China.

Australia’s tourism sector is also constrained by a lack of foreign language-speaking guides and essential staff, such as coach drivers, due to the decline in unemployment caused by the COVID-19 pandemic, which has pushed workers into other sectors.

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Outlook for Chinese Tourism in Australia

Some independent Chinese tourists in Australia told Reuters that they were visiting the country because they had relatives there who organized accommodation and tours, allowing them to bypass language barriers and other issues.

Travelers from India, for example, returned to 80% of 2019 levels last year and now represent the fourth-largest tourist group in Australia. Johnny Nee, director of Easy Going Travel Services Pty Ltd in Perth, which connects Chinese visitors with hotels and cruises, said his partner organizations had filled the Chinese tourist deficit by targeting the domestic market.

Ren, the marketing manager, said her colleagues enjoyed their trip to New Zealand, where they bought a few Gucci bags, but were disappointed they could not visit their first-choice destination. “I really hope we can go to Australia next time,” she said. “After all, we can’t help but think about the magical pink lakes.”