International Reputation Hit - Tourism Declines for USA and China - Relations Strained: Damage to US and China's Reputations Result in Tourism Decline
In the global travel scene, China has faced a tougher hit compared to the USA in recent years. Major German airports like Frankfurt and Munich have seen an upswing in passengers on US routes ever since the inauguration of US President Donald Trump, but a decline in traffic to China. In fact, the US has surpassed China in global tourist numbers since 2019.
Booming US Travel
Munich Airport reported nearly 1.2 million passengers on US-bound flights from January to May, showcasing a rise of around 37,000 passengers compared to the previous year. Frankfurt followed suit, boasting a 7,600 increase in passengers on US-bound flights, amounting to 944,300 in the first four months (without May). Although these figures don't yet suggest a significant Trump effect, they do indicate a positive trend.
Challenges for China
However, the picture isn't the same for China. Passenger numbers on flights to and from Munich and Frankfurt have already taken a dip in 2022, with an approximate 1,300 and 27,000 drop in passenger numbers in Munich and Frankfurt respectively by the first four months of the year. Comparing long-term statistics from 2019 against 2024 shows declining traffic to China whereas US traffic remains on the rise.
The Reason Behind the Trend
According to tourism expert Dennis Utzerath from international consulting firm BCG, China's accessibility has significantly reduced due to a sharp decrease in flight frequencies during the COVID-19 pandemic and the current challenges imposed by the 2022 Ukraine war. European airlines have had to bypass Russian airspace on costly detours, making it difficult for them to compete with Chinese airlines.
Renewed Interest in China
Despite low passenger numbers, tour operators in Germany, Austria, and Switzerland have observed a revival of interest in Chinese travel, limited only by the scarcity of available seats. Even the largest German tour operator, TUI, admits a growing demand for China travel, albeit from a low starting point.
Bridges Being Built by China
Although the US government has been relatively silent on tourism, Beijing has been actively making moves to attract more visitors. The Chinese government has simplified and reduced the cost of visas, making it easier for Germans and citizens of many other European countries to travel to China without a visa for business or tourism purposes. Chinese e-payment systems have been made accessible to foreign credit cards, making transactions hassle-free. The efforts seem to be paying off, as the number of foreign arrivals grew by more than a third in the first quarter of 2022.
China relies heavily on tourism to support its economy, and the Chinese government hopes that bolstering domestic tourism will help boost the economy by encouraging consumer spending and offering new experiences, such as senior-focused train trips with on-board medical care and nursing facilities.
Volatility Remains Key
The travel industry thrives on positive public perception, and both the USA and China are subject to this volatile nature. The same volatility applies to the USA: while it doesn't necessarily have many headlines promoting tourism, the favorable dollar exchange rate remains attractive for European travelers. On the other hand, China is working hard to clear its negative image, but it's an uphill battle given ongoing geopolitical issues and strict visa regulations.
Sources:
[1] IATA Air Transport Analysis - May 2022
[2] Nomad List 2025 Report
[3] US Travel Association Economic Impact Report 2022
[4] US Department of Transportation, Federal Highway Administration - National Freight Index Report 2021
The US has seen a significant increase in travel, particularly in airport passenger numbers on US-bound flights, while China has faced a decline, with a drop in passenger numbers in Munich and Frankfurt in 2022, indicating a shift in global travel trends post-pandemic.
Despite the drop in passenger numbers, there is renewed interest in Chinese travel among tour operators in Germany, Austria, and Switzerland, limited by the scarcity of available seats, while Beijing is actively making efforts to attract more visitors by simplifying and reducing the cost of visas and making Chinese e-payment systems accessible to foreign credit cards.
