China cautiously opens up domestic tourism to unleash pent up spending power and bolster the sagging economy
- China’s Ministry of Culture and Tourism says travel agencies can now operate group tours across provincial borders and has lifted the capacity of tourist attractions
- Shares of mainland travel companies get a boost, with many surging by the daily 10 per cent limit
The Ministry of Culture and Tourism’s move on Tuesday night to allow travel agencies to operate group tours across provincial borders also provided a boost to the shares of mainland travel companies.
The ministry also eased restrictions on tourist attractions, allowing them to operate at 50 per cent of their capacity, raising the limit from 30 per cent imposed in April.
“The loosened policies will throw a lifeline to the country’s 40,000 travel agencies,” said Li Wenjie, chief executive of Shanghai Yaheng International Travel. “Most of the small agencies have been on the brink of collapse with zero sales over the past few months.”
01:19
Dressed in costumes, tourists ‘fly’ into the sky to experience real life kung fu world
Since overseas group tours are still banned as the Covid-19 disease has yet to be contained in a number of countries globally, China is keen to direct that tourist spending domestically and boost the slowing economy. Chinese authorities have taken this move before the next big travel season in October after having missed the May Day holiday.