China Lifts Ban on Group Tours to U.S. and Other Countries

HONG KONG—China lifted restrictions on group tours to the U.S., Australia, South Korea and Japan on Thursday, a move that is set to boost global tourism after three years of pandemic restrictions.

China’s Ministry of Culture and Tourism added almost 80 new destinations to a list of countries approved for group travel on Thursday, with immediate effect. The countries were the third batch of places that group tours led by travel operators can now visit, including some in East Asia that are among the most popular destinations for Chinese holiday makers.

With Thursday’s announcement, Chinese tourists can now travel in groups to almost 140 countries around the world. A few dozen nations remain excluded, including Canada, Ukraine, as well as some countries in South America and Africa. China didn’t restrict individuals from traveling abroad during the pandemic, but getting the proper paperwork was difficult and Covid-prevention measures made the return to China onerous.

While global travel and tourism largely resumed last year, mainland China remained a major outlier until Beijing began lifting pandemic-era border restrictions in December. Tour groups make overseas travel more accessible for many in mainland China, especially those who don’t speak foreign languages.

Before the Covid-19 pandemic, China had become the largest and most valuable source of visitors for many travel destinations around the world. Then, for three years, many of these countries’ tourism sectors were left wondering when Chinese international travel would be allowed again, and how long it would take to return to prepandemic levels.

Japan, for instance, saw tourist arrivals in June return to 72% of 2019 levels, though the figure for Chinese travelers was only 24%, the government said.

It is possible that Chinese traveler numbers won’t return to pre-Covid levels for some time, if ever. Many households in China have seen their household finances strained amid concerns about the economy. Airlines have yet to resume their full slate of flights, while visa and passport backlogs remain a problem. More people in China have shifted toward spending their holidays within China, rather than abroad, analysts say.

Even so, any rebound in Chinese outbound tourism is likely to have intangible effects in addition to financial ones.

When considered alongside a sharp drop in inbound tourism to China, the number of opportunities for Chinese citizens to interact with foreigners and other countries has fallen precipitously since prepandemic days—a contributing factor to geopolitical tensions, experts say.

Chinese tourists were the world’s biggest travel spenders before the pandemic, spending $255 billion overseas in 2019, according to International Monetary Fund data. U.S. tourists, in second place, spent a little more than half that amount.

In Australia, Chinese tour groups accounted for more than one quarter of the $1.4 billion that Chinese tourists spent in the country in 2019. In June, Australia stepped up efforts to lure them back by resuming its global advertising campaign in China.

The return of Chinese tourists will represent “a substantial leap” in the recovery of Sydney tourism, said Deb Zimmer, head of BridgeClimb, which offers group tours to the top of Sydney’s Harbour Bridge.

Trade and diplomatic ties between the two countries were strained during the pandemic, with Beijing angered by then-Prime Minister Scott Morrison’s call for an investigation into the origins of Covid-19, which was first identified in China. A new Australian government elected last year has promoted an improvement in relations. The return of Chinese tour groups would also help stabilize the nation’s relationship with China, said Australian Minister for Trade and Tourism

In South Korea, hopes for a revival in Chinese group tours have been especially pronounced. Chinese group tours to South Korea were already in a deep freeze for several years before Covid-19, after China blocked its tour groups from traveling to the country, in apparent retaliation for Seoul’s decision to install a U.S. missile-defense system that Beijing strongly opposed.

On Thursday, shares in Hankook Cosmetics and tour agency Lotte Tour Development, two expected beneficiaries of increased Chinese tourism, each soared by around 30%. Grand Korea Leisure, a state-run casino operator, jumped more than 20%.

According to South Korean government data, Chinese travelers spent an average of about $1,600 per visit to the country in 2019, more than double that of visitors from Japan and roughly one-third more than those from the U.S.

Retail and travel stocks in Japan were similarly buoyed by the news from Beijing. Isetan Mitsukoshi Holdings, which operates Tokyo department stores popular among tourists, rose 4.6% on Thursday, while Japan Airlines

A Japanese government spokesman praised the Chinese move at a regular press conference on Thursday. Japanese officials have welcomed this year’s tourism resurgence for the economic boost it provides, despite concerns about overtourism.

Write to Selina Cheng at [email protected]