Cost-conscious Chinese tourists skip Australia for visa-free countries in Southeast Asia

“Given China’s economic outlook is not so certain and Chinese tourists are rather price conscious, this means they would prefer somewhere that is easier to get to and the travelling experience … is not too bad either,” said Nee, whose company also provides group tours for Chinese.

Costs for travellers, including some flights and accommodation, had risen 20 per cent over pre-Covid levels, he added.

“The visa-free policies from Thailand and Singapore are quite appealing and I personally do think it has helped divert some Chinese tourists away from Australia.”

A sluggish economy, property sector debt crisis and volatile financial markets have weighed on Chinese consumer demand, which in turn has crimped how much they splurge in countries that have traditionally banked on Chinese spending to boost tourism.

Chinese holidaymakers made up around 26 per cent of visitors over the Lunar New Year period to Australia, compared with more than 50 per cent in pre-Covid 2019, the Australian Tourism Export Council (ATEC) said.

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Inbound tour operators were reporting turnover is less than 50 Covid of 2019 revenues, it added.

“The Chinese holiday travel segment, which makes a significant contribution to the Australian economy, has been slow to shake off the effects of the pandemic,” ATEC managing director Peter Shelley said.