The effects of pandemic travel restrictions continue to hamper Chinese tourism in Australia, resulting in a continued period of stagnation.

Estimated read time 7 min read

During the period spanning two weeks before and after lunar new year, Mandy Ho, the manager of a hot air balloon company in Melbourne, is juggling multiple tasks.

On many mornings, if the weather allows, her co-workers transport Chinese visitors from the Yarra Valley’s vineyards above the eastern neighborhoods of Melbourne to a natural area near the outskirts of the city. Interpreters ensure that there are no misunderstandings.

Ho has diligently organized transportation and accommodations for sightseers, devoting significant time and effort. She has also personally connected with certain individuals through operating the company’s Mandarin mobile application, website, and social media pages in Chinese.

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However, this year there has been a change in trends. Ho reports that there has been a decrease of approximately 50% in the number of Chinese tourists compared to before the pandemic. This has had a significant financial impact on Global Ballooning, as the Chinese market typically makes up half of their clientele.

Ho had anticipated a complete rebound for this year due to the fact that it marks the first year where traveling overseas is allowed during Chinese New Year. However, the recovery has been slower than initially predicted.

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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There are other tourism operators, besides Ho, who are disappointed with the slow return of Chinese tourists. Data from Tourism Australia reveals that only 102,000 Chinese tourists visited Australia in September 2023, compared to 688,000 in the same month four years prior.

Ho says, “I believe there are several reasons for this.”

The economic situation in China is currently not favorable, leading many individuals to opt for travel destinations such as Singapore, Thailand, and Malaysia due to their visa-free policies. As the world gradually recovers from the pandemic, this year marks the first time these individuals have been able to travel and they are showing a preference for short-distance flights.

Ho’s findings are backed up by data gathered by booking platform Trip.com, which shows a 30% rise in Chinese tourists travelling to south-east Asia in the past few weeks, compared to levels seen in 2019. There has also been an uptick in trips to Hong Kong, Japan, and South Korea.

With Chinese tourists diverting their funds to other destinations, Ho and other tourism providers have had to come up with innovative solutions.

“We made an effort to not rely solely on one source,” Ho states. “We spread out our market and now we are noticing an increase in visitors from the United States, Taiwan, and Hong Kong this year.”

“We are not sounding any warning signals at the moment.”

According to Peter Shelley, a member of the Australian Tourism Export Council, which represents tourism operators, many of his colleagues are feeling let down but are not in a state of panic.

Shelley expressed that though we had hoped for a more positive outcome, we should be honest and acknowledge that it may not be as buoyant as desired. It was never expected to be perfect, and we had anticipated around 75%.

“Is this a cause for concern? I believe no one is sounding the alarm just yet. It’s still early on, and perhaps by the end of the year we will see a return to 2019 levels.”

Shelley notes that numerous Chinese customers have come to the understanding that Australia is a pricey destination to travel to and fly in. Currently, there are approximately 170 planned flights between China and Australia for this month. This accounts for 86% of the total number of flights during the same month in 2019.

The government organization, Tourism Australia, acknowledges the importance of promoting travel for leisure. Chinese tourists contributed $12.4 million to Australia’s economy in 2019. The agency is optimistic that tourism levels will recover to pre-pandemic levels by the end of this year, even though Oxford Economics predicts it may not occur until 2025-26.

Although travel to China resumed a year later than other markets, we are optimistic about its recovery as the market is gradually rebuilding. A spokesperson for Tourism Australia stated this.

Airline passengers make their way through Melbourne Airport in MelbourneView image in fullscreen

However, a few specialists are troubled by informal reports from the last two weeks. According to Dr. Paul Stolk, a professor of tourism at Newcastle University, the recent lunar new year served as an indicator of the Chinese market’s state of health.

“The current timeframe is crucial for observing activity,” stated Stolk. “It could provide valuable insight into a potential rebound and where it may happen, both in major cities and popular regional areas.”

We have returned to our usual state/condition.

The sprawling Great Ocean Road runs alongside the rugged cliffs of the south-eastern coast of Victoria and is frequently frequented by busloads of Chinese tourists. Over the years, signs along the road have consistently reminded these tourists to stick to the left lane while driving.

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Prior to the outbreak of the pandemic, certain restaurants located on this route produced menus in the Chinese language for the benefit of tourists. As a result of prolonged lockdowns, numerous proprietors were optimistic that Chinese visitors would return to the coastal areas in large numbers, resulting in an economic turnaround for them.

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

The general manager of Great Ocean Road Regional Tourism, Liz Price, recognizes that the Chinese tourism market in the area has been slow to bounce back. However, she believes that recent weeks have shown some signs of improvement, giving reason for hope.

Price states that there have been reports of increased numbers and growth in coach day trips from Melbourne over the summer.

Possible rewording: It is possible that the Australian government’s decision to reissue group visas for Chinese tourists in September is the reason for this. According to Dr. Maneka Jayasinghe, a tourism specialist at Charles Darwin University, this could result in an upsurge of tourist activity over the next few months.

Sally Cannon is the proprietor of the Apollo Bay Bakery, located about 2.5 hours west of Melbourne. The bakery proudly boasts being the birthplace of the famous scallop pie on the Great Ocean Road. Sally remains hopeful about the business’s future.

Cannon has observed a rise in Chinese visitors in the past two weeks, unlike Ho who did not. This trend has also been noted by other entrepreneurs in Lorne, a town located near Melbourne. Cannon remains optimistic that the number of Chinese tourists will continue to grow.

Before the onset of the Covid-19 pandemic, Chinese tourists were a significant portion of our revenue, according to Cannon. Despite their absence in recent years, we have managed to operate successfully. However, it is enjoyable to have them back.

“This has been the initial year post-Covid where it has truly felt like we have returned to some sense of normalcy. I have a gut feeling that this state will persist.”

“It resembled a green signal.”

Political tensions between China and Australia have affected tourism, like many other sectors of the Australian economy. However, experts have varying opinions on the extent of this impact.

Tom Parker, the CEO of the Australia China Business Council, stated that tensions may have impacted the tourism figures until Prime Minister Anthony Albanese’s visit to Beijing in November, which marked the first time an Australian leader had visited in seven years.

Parker stated that symbolism holds great significance in China.

“This journey was highly significant for China, as it signified a renewed relationship with Australia. It was seen as a positive signal, giving permission to engage with Australia once again. Although not explicitly stated, the visit from high-level leaders spoke volumes.”

Shelley suggests that the effects of geo-political tensions would have been more apparent if travel restrictions were not in place during the pandemic.

“In the past, this issue would have had a significant impact,” Shelley comments. “However, the current government has managed to alleviate the situation, although there may still be underlying tension.”

Ho believes the enduring appeal of the Australian landscape will always attract tourists from China, no matter the political climate. She just hopes they won’t wait too long to return.

Ho believes that they will return due to the abundance of offerings. By the conclusion of this year, it is likely that the numbers will have risen.

Source: theguardian.com

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