The number of Chinese visitors to the US has fallen for the first time in 15 years, after more than a decade of rapid growth, but friction between the two countries is just one reason for the slowdown, according to travel industry insiders. Travel from China to the US fell 5.7 per cent in 2018 to 2.9 million visitors, according to the National Travel and Tourism Office, which collects data from US Customs forms. It was the first time since 2003 that Chinese travel to the US slipped from the previous year. But because China commands some of the highest tourism traffic to the US, any fall-off will be felt by destinations that have come to rely on Chinese spending power. In 2017, the country had the fifth highest number of US-bound tourists, behind Canada, Mexico, Britain and Japan. China did not crack the top 10 list until 2011 and has been climbing ever since. Spending by Chinese visitors – which does not include students – ballooned more than 600 per cent between 2008 and 2016, to nearly $18.9 billion. In 2017, that fell by 1 per cent to $18.8 billion, or about 12 per cent of overall tourism spending. To hold on to those dollars, experts say the tourism industry must do more to keep up with Chinese travellers and their changing needs. Last summer, China issued a travel warning for the US, telling its citizens to beware of shootings, robberies and high costs for medical care. The US shot back with its own warning about travel to China. Wang Haixia, who works at an international trade company in Beijing, travelled to the US in May for her sister’s graduation. She and her family planned to spend 10 days in Illinois and New York. Wang says she might have stayed longer but did not want to contribute to the US economy amid the trade war. “I cannot cancel this trip because I promised my sister I would go to her commencement,” she said. “My relatives will contribute more than 100,000 yuan (US$14,500) to America just staying for 10 days, and that’s enough,” she said. Chinese tourists are shunning US amid trade war Another reason for the fall in Chinese visitors to the US is economic uncertainty in China which has led travellers at the lower end of the market to holiday closer to home, according to Wolfgang Georg Arlt, director of the Chinese Outbound Tourism Research Institute. A study by the institute found that 56 per cent of travellers leaving China in the last three months of 2018 went to Hong Kong, Macau or Taiwan compared with 50 per cent in 2017. Those who do travel further are seeking out more exotic destinations like Croatia, Morocco and Nepal. Chinese travel to the US had already been moderating from its breakneck pace earlier this decade. In 2000, 249,000 Chinese visited the US. That tripled to 802,000 by 2010, then tripled again by 2015, in part because of higher incomes, better long-haul flight connections and an easing of visa restrictions, according to US consulting firm McKinsey. The US welcomed more than 3 million Chinese visitors in 2016 and 2017. But year-over-year growth edged up just 4 per cent in 2017, the slowest pace in more than a decade. A huge Venice-themed ship, just for Chinese tourists Most industry-watchers agree that any downturn is temporary, since China’s middle class will only continue to expand. The US government forecasts Chinese tourism will grow 2 per cent this year to 3.3 million visitors, and will reach 4.1 million visitors in 2023. “Even if the Chinese economy cools, it’s still going to continue to be a very good source of growth for the travel industry,” said David Huether, senior vice-president of research for the US Travel Association. In general, international travel to the US has been declining. Overall data for 2018 has not yet been released, but international travel fell 2 per cent in 2016 and was flat in 2017. Larry Yu, a professor of hospitality management at George Washington University, notes that Chinese tourists – particularly younger ones – are increasingly planning trips using social media apps like WeChat and are less likely to book through big tour groups. They have also rapidly adopted smartphone-based payment systems. Older Chinese tourists drive mobile payments on holiday overseas Destinations should invest in those technologies now if they want to continue attracting Chinese tourists, says David Becker, former CEO of Attract China, a New York-based travel consultancy. “A lot of companies looked at the Chinese market as easy money, but we have to be relevant to the Chinese,” Becker said. Attract China, for instance, has helped luxury stores in Manhattan incorporate Jeenie, a live translation app, and add Alipay and WeChat Pay for mobile payments. Alipay is owned by Alibaba, which also owns the South China Morning Post. Others have also been stepping up their efforts. The Beverly Centre mall in Los Angeles used to cater to busloads of Chinese tourists. Now, it is focusing on small groups of less than 10 VIP shoppers, says Susan Vance, the mall’s marketing and sponsorship director. The mall has also pushed stores to offer China UnionPay, a digital payment service. More than 100 stores now have it, Vance says, up from three in 2014. Tourism officials are also catching on to WeChat. In late 2017, Washington DC became the first US city to launch an interactive guide in the app. Chinese travellers can use it to get directions to attractions, access audio tours in Mandarin and find dining and shopping outlets. The city’s marketing office has one staff member dedicated to WeChat. Washington also recently launched a Welcome China program that teaches hotels, restaurants and other venues about Chinese customs and encourages them to offer things like Chinese-language menus or in-room slippers. So far 44 hotels and a handful of restaurants have signed on.
