After the zero-Covid and entry policy were eased, Chinese outbound tourists have increased their search for foreign destinations. Then what should we do in order to attract visitors from Vietnam’s pre-pandemic largest inbound market? Learn about the sentiment as well as liking and behaviors of Chinese tourists to come up with right decisions and policies.

More than half will travel outside of China within a year of reopening

According to research by Dragon Trail, a marketing solutions company based in China, more than half of travelers (52%) plan to travel outside of mainland China within a year. 84% will plan a trip abroad within two years of reopening. 16% said that they wouldn’t travel overseas. The study results also showed gender differences. Specifically, women are more likely to plan travel as soon as restrictions are eased than men.

Nature tourism remains the top priority, followed by theme parks and road trips

The trip to discover nature is the top choice of Chinese people. Amusement parks, water parks and zoos are tied for 2nd place, followed by self-guided road trips. In addition, sports tourism is increasingly popular, possibly thanks to the FIFA World Cup in Qatar. Meanwhile, cultural tourism drops sharply, probably because the need for relaxation among Chinese tourists is higher than the need to learn about culture after prolonged restrictions. Interest in island tourism also decreases.

Online source is still the top information source

Social media platforms, websites and OTAs (Online Travel Agent) continue to be the top channels for Chinese to access information about destinations. This highlights the importance of using digital channels to reach potential visitors. Travel bloggers are also preferred by nearly half of mainland tourists.

Prioritize price, safety and convenience when choosing travel products

When it comes to travel products, price and safety are still decisive factors. Moreover, convenience should be emphasized in tourism products to motivate travel. Businesses and destinations need to focus on these factors if they want to please Chinese visitors.

Why Chinese tourists travel abroad

Trying local cuisine and lifestyle is the main purpose of Chinese tourists for their next overseas trips. Beaches and seaside destinations are also on the wish lists of more than half of respondents. Additionally, visiting iconic museums and architecture still ranks high.

Lately, China announced it would welcome international visitors back from January 8, 2023. In particular, the country will drop quarantine requirements to travelers. The information makes both domestic and foreign travelers happy. After the prolonged zero-COVID policy, the world’s top travel market is finally open.

As forecasts, China remains to be a desirable outbound market worth hundreds of billions US dollars.

The pre-pandemic biggest travel market

Before the COVID-19 pandemic, China was the market spending most for outbound travel in the globe. According to the World Tourism Organization (UNWTO), Chinese travelers spent 254.6 billion USD for outbound tourism in 2019, accounting for nearly one-fifth of global tourism spending. China’s number of outbound tourists also increased by an average of 12.8% a year between 2009 and 2019. It was more than double the world average growth rate of 5.1%.

Statistics released by the National Bureau of Statistics of China (NBS) showed that the total number of people’s trips abroad steadily increased from 57.4 million in 2010 to 169 million in 2019.

Nevertheless, the growth momentum has been hit hard by the pandemic in the past 3 years, from 2020.

Chinese travelers feel eager after the announcement

Following the announcement to stop quarantine for inbound visitors, Trip.com announced a 254% increase in foreign bookings compared to the previous day.

Searches for popular cross-border destinations increased tenfold within half an hour of the news, according to data from Chinese travel platform, Ctrip.

Some current barriers

VariFlight data shows that international flights to and from China are now just 8% of pre-pandemic levels. Meanwhile, carriers require confirmation of traffic rights and airport locations when they seek to increase capacity.

The fares are still high. Aside from that, other travel barriers include an expected backlog of passport and visa application renewals, and new screening requirements for Chinese visitors by countries including the US, Japan, India and Italy, said Steve Saxon, McKinsey’s lead of transportation, infrastructure and logistics in China.

Predictions

Saxon hopes international capacity to and from China to increase to about 20-30% of pre-pandemic levels in March 2023 and possibly to 50% by summer 2023.

The annual growth of China’s outbound tourism is forecast to be 14.1% from opening time to 2032. Growth in the market is attributed to the growing expansion of the travel industry in China. According to the study, demand in the China outbound tourism market is predicted to surpass US$ 690,7 billion by 2032.

The year 2022 marks a strong revival of the tourism industry after being walloped by the two-year pandemic. According to previous assertions from The Outbox Company, the outbound tourism market of Vietnamese tourists has not decreased. It has been pent up and temporarily “frozen” due to external factors such as travel regulations, health risks, pandemic or travel costs, etc.

According to the report “How Vietnamese are reconnecting with outbound travel?” from The Outbox Company, in the first nine months of 2022, 88.5% of Vietnamese outbound travelers took both domestic and outbound trips. This proves that the outbound tourism market does not negatively affect the domestic tourism market. On the other hand, these two markets develop independently and in parallel depending on the needs and affordability of Vietnamese tourists. Although the tourism situation still has certain limitations, the outbound travel demand of Vietnamese tourists is still increasing, especially in leisure travel.

 

Due to the pent-up travel demand in the past two years, the number of Vietnamese tourists traveling abroad began to increase when Vietnam and the world loosened travel restrictions and opened the border in March 2022. According to a survey by Outbox, the main motivation for making overseas trips right after the pandemic is not only for relaxation and vacation. But it is also the desire to reconnect with outbound travel after a long lockdown.

29.25% of Vietnamese tourists surveyed said traveling abroad is a regular activity that helps them reconnect with their passion for travel and arouses their passion to explore the world.

It can be seen that the pent-up demand for overseas trips during the two years of border closure has motivated Vietnamese people to take leisure outbound trips. 

In addition, the opening of the border has also put foreign service tourism back on the right track. However, only over 30% of survey respondents said that they travel abroad to do business or to attend conferences and exhibitions.

In January 2022, the “Vietnamese Travel Sentiment Report” showed that concerns about loved ones’ safety (both the elderly & children) were among the major barriers to travel. Nevertheless, until now, when concerns about safety have been significantly reduced, the desire to reconnect with family and friends of Vietnamese tourists after a long time of separation has also been revived.

The pent-up demand for outbound travel is one of the reasons for the explosion of the new trend of “revenge tourism”. According to the report of the World Tourism Organization (UNWTO), by 2030, resort tourism will also be the most popular form of tourism.

Besides the demand for overseas trips in general and outbound leisure ones in particular, Vietnamese tourists are willing to pay more to experience and relieve stress. 65% of survey respondents spent more on their trips in 2022 than they did on trips in 2019. While 22% spent the same and only 13% spent less on their first outbound after COVID-19.

The increasing number of foreign tourists and the high affordability are signs of a positive recovery for Vietnam’s outbound market after the pandemic. All research and outstanding information will be found in the Vietnam Outbound Travel report.

The Outbox Company

India’s outbound tourism market is already huge and showing no signs of slowing down. It’s time for the global tourism industry and businesses to pay attention in the hope of capturing market share from the second largest market (Skift).

In the last few years, all eyes in the tourism industry are on China’s outbound tourism market. But now, India is proving that it will be the next one to watch. With the world’s second-largest population, India boasts one of the fastest-growing major economies in the globe. We’ve seen signs of the power of this market, as well as signs that real growth is yet to come.

Indian outbound tourism will surpass US$42 billion in 2024 (Nangia Andersen LLP & FICCI).

The pandemic period aside, India’s outbound tourism market has been one of the fastest growing in the world over the past few years, following only China. Before the pandemic, the Indian outbound tourism market was expected to grow at a compound annual growth rate of 7.2% from 2016 to 2028.

In 2021, Indians spent about US$14.3 billion for traveling overseas, compared with US$22.9 billion in 2019 (UNWTO). While the drop in spending could be due to the pandemic, these figures show the enormous value from Indian outbound travelers.

Overall economic growth, a large and increasingly affluent middle class, along with the increasing convenience and connectivity of air transport have fueled an increase in outbound travel from India. In addition, the needs of niche markets in tourism such as medical tourism, wellness and adventure tourism also contribute to this growth. The increasing usage of smartphones and the internet has contributed to the rise of online bookings. Barriers remain as the tourism industry is recovering, but there are optimistic signs of a strong return of the Indian outbound tourism market in the next few years.

Support from government regulations is also one of the levers for the development of this market. In particular, to facilitate business activities and promote the participation of Indian companies in outbound tourism, the government may consider steps such as increasing direct connections to popular and emerging destinations, allowing foreign cruise ships in Indian waters, or trying to coordinate with stakeholders to boost the outbound tourism market.

With its growing economy, young population and increasing middle class, India is ideally positioned to be one of the potential outbound tourism markets, and bring a great revenue to many destinations around the world.

 

With the world gradually coming out of the restrictions, it’s true to say that Vietnamese are hungry to be free to travel again after more than two years of being trapped within the borders, now is a necessary time to assess how the last years have impacted Vietnamese outbound travelers’ reference in choosing destinations. The answer will be complex, like the COVID-19 crisis, blending both fact and emotion.

A survey on travel sentiment in October 2021 showed that while most Vietnamese travelers were confident about the positive movement toward the endemic, they continued to be wary of safety and new virus variants as their most significant concerns when planning their trips. In particular, traveling abroad received the highest level of caution, involving the risk of gathering large numbers on an airplane, strict travel restrictions, and quarantine requirements from different countries. However, these have been easing over time as countries worldwide are shifting to normalcy. 

Research conducted by Outbox in September as part of the Vietnam Outbound Travel series reveals that in-region destinations still entice Vietnamese tourists.

Thailand, Singapore, and Korea are the top three go-to destinations once they resume outbound travel.

Considering what influences Vietnamese tourists’ decision to choose an outbound destination, cost and accessibility (visa requirement) have been consistently the two most important factors. Firstly, short-haul destinations, with a relatively low cost of traveling, are consistently among the top destinations that attract many Vietnamese tourists. Secondly, as the proportion of young travelers of Millennials and Gen Z is dominating the market, the trend of self-planned overseas trips also becomes increasingly popular; therefore, destinations with simple visa procedures will easily be the choice of Vietnamese tourists. These explained the popularity of nearby destinations within the Southeast Asian region, such as Thailand, Cambodia, Singapore, and Malaysia, in the choice of Vietnamese outbound travel in the last few years. 

However, while there is reason to be optimistic for a robust recovery in traveler spending once the COVID-19 virus is controlled due to pent-up demand, with 65% of outbound tourists spending more for their trips in 2022 and 22% keeping their travel budget at the level of 2019, the post-pandemic period upended many changes with the appearance of unprecedented factors, including the element of fear and concern of ongoing uncertainty. Traveling to any destination involves risk and uncertainty; therefore, tourists evaluate the characteristics of a destination, possible negative consequences, and various factors such as necessity and values. In this case, it is about the hygiene and safety of destinations. 

Another characteristic of Vietnamese outbound tourists that reflects on their choice of destination is their spending priority.  Most Vietnamese tourists choose social and shareable experiences such as sightseeing and exploring local cuisines as their primary reason for traveling. Shopping in malls comes third on the list of must-do activities.

In addition, Vietnamese travelers are particularly drawn to experiences they can participate in socially and then share via common social media platforms. Contents on social channels and the popularity of travel vlogging among the young Vietnamese community also contribute to the flow of outbound travel.

With these elements in place, not surprising that Asia destinations with a harmonized combination of landscapes, activities, and shopping have always attracted Vietnamese tourists. 

In the initial phase of reconnecting with international travel, Vietnamese tourists tend to prioritize familiar destinations with easy-to-plan itineraries to satisfy travel demand that has been locked up. However, this trend may only partially reflect the characteristics of Vietnamese outbound tourists. Uncertainty is a new certainty; in recovering to the pre-pandemic level, new references and behavior of Vietnamese tourists are expected to emerge. Like other consumer habits, leisure travel, especially outbound travel, will also be affected by economic factors and how the industry operates as the pandemic left lasting marks.

The Outbox Company