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Beyond Group Think

Aside from increased government support, China’s travel industry needs to leave behind the outdated model of mass tours to major sites, and start offering a more bespoke experience that leans into the country’s culture, say industry experts

By Meng Qian Updated Oct.1

International tourists take a bike tour organized by guide Liu Lichao to explore the streets of Shanghai (Photo courtesy of the interviewee)

If you want to make perfect xiaolongbao, you should choose pork shoulder, because it’s the freshest and most tender of all,” said Huang Huazhong as he led a party of foreign clients on a tour of Shanghai’s Guangyuan Food Market, explaining how to make Shanghai’s most famous delicacy, a type of steamed dumpling with a meat and broth filling that oozes out when you bite into it. 

Huang started the Chinese Food Workshop which teaches tourists the secrets of Chinese cuisine. Having been closed for three years due to the Covid-19 pandemic, he started up again at the end of 2023. His guests that Sunday were four flight attendants from Austrian Airlines, who during their layover, booked a day tour. Business is looking up, said Huang, who is busy with groups again this summer, all eager to explore Shanghainese culture and food. 

The pandemic dealt an almost four-year blow to inbound tourism. Since late 2023, aware that the industry needed a kickstart, the government has revealed multiple policies, including visa-free policies and measures to help tourists navigate the country, particularly as China has become a digital country, with Chinese apps needed for payments, entrance tickets and transportation. 

The measures are starting to work. The first half of the year has seen a conspicuous surge in inbound tourism. Overseas, TikTok and YouTube are flooded with videos about travel and sightseeing in China, and clips with the hashtag “China Travel” have reached over one billion views. 

But many agree that the industry should not just go back to what it was before, with large groups of tourists being shuffled around big sites in big cities. As tourists become more discerning, the travel industry needs to adapt to more bespoke travel and local and cultural experiences, say travel insiders.

Inbound Tourism Surge 
Beijinger Liu Lei gambled on opening a hotpot restaurant in Shichahai, a touristy area of the old city of Beijing famous for lakeside bars and eateries. His restaurant is inside the quaint Huixiantang Hall, a private mansion that belonged to a high-ranking official of the Qing Dynasty (1644-1911). 

Business was so poor that at first, he doubted he would survive. To his surprise, at the beginning of March he saw a surge in foreign clientele, many of whom were overseas students. He found they came from countries like Germany, France and Spain, often with friends or relatives who were visiting them. 

Getting into China is much easier since passport-holders of 15 countries have been allowed to enter visa-free for periods of 15 days for business, tourism and visiting relatives and friends, including Australia, New Zealand, Poland, Hungary and Ireland. There are also reciprocal visa arrangements with another seven nations, including Singapore and Thailand, which allows stays of up to 30 days. 

By July 15, 2024, China expanded its 72 or 144-hour visa-free policy to 37 entry ports for foreign nationals from 54 countries including the US, Canada and the UK, which allows layovers between flights to a third country or region, restricted to the region the flights land in. 

“I never thought I’d get so many foreign guests, we get a few groups every day,” Liu said. 

Peng Ran, who has run a bar for eight years not far from Liu’s restaurant, feels differently. “There were far more overseas tourists in the past. This year saw a slight recovery, but you still can’t compare it to the good old days,” Peng told NewsChina. 

The bar owner argued that to reboot inbound tourism, issuing more visa-free policies is far from enough – retaining tourists and encouraging them to spend more is crucial. 

According to the China Tourism Academy, in Q1 2024, the numbers of overseas visitors received by China’s top four cities – Beijing, Shanghai, Guangzhou and Shenzhen – have already exceeded every quarter of 2023. But the statistics are incomparable to those in the same period of 2019, respectively accounting for 67.2 percent (Beijing), 64 percent (Shanghai), 53.2 percent (Guangzhou) and 83 percent (Shenzhen). The latter benefits due to its proximity to China’s Hong Kong SAR. 

However, there was still not much tourism in 2023, as China continued to recover from the impact of the pandemic, and international flights only started ramping up from the summer. 

Eastern China’s Yangtze River Delta Region, mainly covering Shanghai and provinces of Zhejiang, Jiangsu and Anhui, is popular with overseas tourists. Statistics from leading tourism platform Trip.com show that in the first quarter of 2024, bookings for inbound tourism in this region rose 350 percent compared with the year earlier. 

Li Xinfang is deputy director-general of the Zhejiang Provincial Department of Culture, Radio, Television and Tourism. She told NewsChina that instead of merely visiting regular attractions, global tourists have developed a stronger interest in experiencing authentic Chinese culture and lifestyles. 

“Many foreign visitors now like visiting popular food markets in Hangzhou, Ningbo and Quzhou, or going to the ancient towns of Hangzhou to have an authentic breakfast like a real local,” Li told NewsChina. 

In Hangzhou, the ancient capital of the Southern Song Dynasty (1127- 1279), popular activities for foreign tourists include learning about Chinese traditional instruments and costumes, flower arranging and the rituals of the Chinese tea ceremony. 

Another conspicuous change lies in the mode of traveling, Li said. Besides traditional group tours arranged by overseas tour operators, more international tourists prefer independent travel or small group short tours. 

“We’ve particularly found that international content creators and influencers on YouTube and TikTok are influential among China’s inbound tourists. Their vlogs about traveling in China have increasingly affected overseas people’s understanding about China, and influenced their ways of traveling and consuming,” Li said.

Foreign tourists learn to make xiaolongbao dumplings at the Chinese Food Workshop in Shanghai (Photo courtesy of Huang Huazhong)

Overseas tourists learn how to process green tea at a plantation in Southwest China’s Yunnan Province (Photo courtesy of the interviewee)

A foreign tourist wearing a Chinese hanfu costume makes a tuanshan, a round moon-shaped fan popular in ancient China, in a museum in Nanxun District, Huzhou, Zhejiang Province, August 6, 2023 (Photo by VCG)

Stale Product
A veteran bilingual tour guide who has been in the overseas tourism industry for over two decades, Dou Junjie disbanded his team in June 2020. They used to provide services for tour groups from overseas agencies. 

In 2021, Dou founded Beijing Cycle Culture, a firm that combines cycling and cultural tourism. Over the past three years, he has developed seven cycling routes revolving around Beijing’s historical and cultural areas including a central axis tour, Peking Opera tour and an old town tour. 

Dou now offers guide services in 15 languages. From his perspective, a half-day or full-day cycle tour provides an immersive experience of exploring “the capillaries of the city.” 

While bike tours or culinary walking tours are common elsewhere, Dou said this was unimaginable in the mainstream guided-group tourism culture of the past. The 1990s and 2000s was a golden era for inbound tourism, with large groups on multiweek tours crisscrossing the country. 

The inbound tourism industry at the time followed only one business model: overseas tour operators facilitated large tour groups to China and collaborated with a local agency which provided local services. “Over time, local agencies in China gradually lost both initiative and the capability to design and innovate products,” Dou told NewsChina. 

“China’s inbound tourism began similarly to its processing and manufacturing industry – focusing on processing materials supplied by foreign clients. But unlike our manufacturing sector, which has developed ‘made in China’ and ‘innovated in China’ brands, our inbound tourism has not yet reached this stage,” Dou said. 

He stressed that domestic agencies or inbound tourism professionals should not be only satisfied with providing services, but should be product innovators too. 

“If we only make money by offering simple services as we did in the past, then we are doing little more than breaking even. Only by innovating creative, diverse and fun tours by ourselves can we make more profits from higher-value products,” Dou said. 

Guo Yuyang, founder of Shanghai Destination International Travel Service (“Destination”), is such an innovator. He obtained the only operating license from Gray Line to provide bus tours in Shanghai. Founded in 1910, Gray Line is one of the world’s largest providers of sightseeing tours in more than 700 locations worldwide. 

Destination provides half- or full-day special tours, and in 2024, the agency has received some 1,000 guests from overseas every month. 

“Our business model is like giving our clients a menu and letting them order anything they want. For example, when hairy crab season (September to December) comes, we’ll do a hairy-crab route to guide our guests to walk the city tasting this famous delicacy in Shanghai,” Guo told NewsChina. 

Guo’s agency has been collaborating with Huang Huazheng’s Chinese Food Workshop on culinary tours. Now, he is trying to launch other products, like a calligraphy tour.

Are We Prepared? 
Yu Garden, nestled in the heart of what used to be the old part of Shanghai, is always on the itinerary for foreign tour groups. Nowadays, most of the groups you see in this classical Ming Dynasty (1368-1644) garden are guided by what are definitely “veteran” guides. 

“Many foreign-language tour guides have left the industry. Those who stay are mostly around my age. I don’t often see the faces of younger ones,” Shanghai-based tour guide Zhang Wei, who is in his 40s, told NewsChina. He has been an English-language guide for 23 years. 

“For veterans like us, guiding foreign tourists is effortless. Take Yu Garden for example. I can do a quick tour in 45 minutes, but I can of course also do a longer in-depth tour, explaining its history, culture, background stories and architectural aesthetics. For a new foreign-language guide, you can’t achieve that level of proficiency without several years of practice,” Zhang said.
 
Dou said that before 2020, there were more than 650,000 Chinese-language guides and 40,000 bilingual guides in China. In order to guide in the country and enter sites like the garden in Shanghai, guides need to sit tests and obtain a license. But with the shut-down of inbound tourism due to the pandemic, many foreign-language guides quit. “The number of us in this profession is dwindling. We are facing an inevitable aging problem,” he said. 

Since early 2024, Dou has been training young people for the next tour guide exam in November. But he stressed that obtaining a guide license is just the first step. 

“It’s like learning to drive a car. Do you dare hit the road as soon as you get your license? If a novice guide wants to lead inbound tours in 2026, they have to start preparing right now,” Dou said. 

Another big issue has simply been paying for goods and services. Since China all but transitioned to a cashless society during the pandemic, it has come as a shock for many visitors to discover that cash is rarely used. Even street vendors displaying QR codes for use with China’s most prevalent platforms, WeChat Pay under the WeChat app by tech company Tencent, and Alipay, run by tech company Alibaba. 

Signing up for basic functions on these apps can be hard without a Chinese telephone number. Outside major cities and large shops or hotels, foreign debit and credit cards are rarely accepted. It makes simple things like traveling on public transport difficult. 

This is an area where the government acted in early 2024. In March, the State Council issued a guideline aimed at providing higher-quality, more effective and more convenient payment services for senior citizens (many of whom do not have a smartphone) and foreign visitors. It said large business districts, tourist attractions, hotels, hospitals and other key locations are required to support multiple payment options, including mobile, bank card and cash payments. The guideline also called for efforts to make mobile payments more user-friendly for foreign visitors with further simplified payment processes. 

Jin Yaoyan, Alipay’s product lead for its app’s international version, told NewsChina that in the first half of 2024, the amount of consumption from overseas tourists using Alipay rose eight times from the previous year. The number of local businesses that accepted foreign card transactions via Alipay had a threefold increase year on year, though it did not supply figures, and tourism in 2023 was still slow. 

Another hurdle lies in the hotel industry. Many foreign tourists complained that hotels, particularly smaller ones or those in more remote locations, refused to allow them to stay, as the accommodation was not licensed by local police. In China, all hotels must register foreign guests through a system linked to the public security bureau, and many smaller places complained they did not have the equipment. 

On July 25, 2024, the government announced that local authorities and online platforms should not refuse accommodation providers from hosting overseas guests based on whether it is licensed. It also said the hotel industry should improve foreign-related reception service capabilities and enhance the service level of employees. 

From the perspective of Ge Lei, deputy director of the China Tourism Marketing Association, China still cannot provide satisfying public services that completely meet the needs of international tourists in aspects such as language support, international payments and accommodation. 

“If China truly intends to boost inbound tourism, the country should invest more resources in it,” Ge said. “It is reinvention that China’s inbound tourism truly needs, not just recovery,” he told NewsChina.

A group of tourists from South Korea visit Zhangjiajie National Forest Park, Hunan Province, May 30, 2024 (Photo by VCG)

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