Chinese tourists returning, but slower than expected

Friday, 23 February 2024

New Zealand is seeing gradual growth in the number of visitors coming over from Asia. (File photo)

Chinese tourist numbers are unlikely to reach pre-Covid levels this year, despite it being the first Lunar New Year since Beijing lifted its travel ban.

New Zealand is experiencing a “positively building” number of visitors from Asia , especially the Chinese visitors who once dominated overseas arrivals and are keen on unique Kiwi experiences, tourism operators say.

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Tourism New Zealand chief executive René de Monchy said tourism recovery had been gradual, and “we’ve seen positive signs of that recovery out of China”.

The number of tourists from China in December was about 52% of what it was in December 2019.

Due to Beijing's ban on non-essential travel, “we didn't really have many visitors last year for the Chinese New Year”, but this year’s Lunar New Year holiday (which ends today) had been “pretty good”, de Monchy said.

Tourism New Zealand chief executive René de Monchy says the industry is seeing “positive signs” of recovery from China.

China Travel Service chief executive Lisa Li, who has been in the tourism industry for over 30 years, said she felt “very optimistic”.

Her company had been really busy since the end of December, and February was “usually the busiest month of the year”.

China Travel Service chief executive Lisa Li says February is 'usually the busiest month of the year' for businesses like hers.

Her business had to put off many inquiries and bookings from China because its capacity was “quite constrained”, she said.

“It’s very hard to actually confirm hotels, transportation, tour guides, and even attractions for the peak season… [The demand] is beyond our capacity,” Li said.

A group of 30 Chinese tourists dine at a restaurant in Lake Tekapo on February 16.

Established in 2000, the New Zealand branch of China Travel Service brought about 35,000 Chinese to New Zealand each year.

On February 6 last year, China resumed outbound group tours to 20 selected countries, including New Zealand.

The first Chinese tour group to New Zealand in three years arrived on March 10, 2023, including 76-year-old traveller Jiang Weizu, who livestreamed his trip to his social media followes.

But the type of travel tourists now wanted had changed “quite significantly”, Li said.

“More Chinese tourists are seeking an authentic, immersive experience here.

“They want to go beyond the beaten tracks and hotspots, visit the hidden gems and discover the real New Zealand by themselves. They want to travel like a Kiwi.”

Lake Tekapo restaurant owner Ansun Zhong says his eatery has been serving Chinese tour groups every day since the end of December.

Middle to high-income Chinese expected value for money and were “getting more and more picky on the quality” of their experiences.

Pricing was an issue for all visitors, she said.

RealNZ Eastern Sales Manager Li Li says Chinese tourists visiting Queenstown this summer have wanted experiences.

“For many younger Chinese tourists, New Zealand definitely stays at the top of their bucket list. But we're an expensive offering, and they may not be able to afford it.”

Mountains launch from the sea into the clouds. Thunderous waterfalls descend from the heavens. And not another soul in sight (video published May 2021).

De Monchy said competition for Chinese visitors was fierce, and New Zealand needed to make sure it was marketing to them through all the various local channels available.

“They are interested in getting in touch with nature, wanting to learn and explore new things. They like trying exotic cuisine, visiting beaches and coastlines, and experiencing local life.”

Covid had a huge effect on tourism. Chinese visitor arrivals in Christchurch reached 20,202 in January 2020, but slid to 5711 in February 2020, and just 1322 in January 2023. This January, the number jumped back up, to 8714.

Since China Southern resumed direct flight to Christchurch in November 2023, Chinese visitor arrivals had more than doubled, according to Christchurch International Airport.

Doubtful Sound has become popular with visitors from China.

“In February, loads on our China Southern flights were very high as we got close to the Chinese New Year. Chinese tourists also fly to Christchurch on our Australian flights in the peak season,” a spokesperson said.

Nationally, New Zealand had 2.96 million overseas visitors in December 2023, up 254% compared to December 2022, according to Stats NZ.

The biggest changes were in arrivals from Australia (up 194% to 1.26 million), the United States (up 48% to 337,000), and China (up 12.7% to 151,000).

China was New Zealand’s second-largest international market in 2019 with 407,000 visitors, according to Tourism NZ’s visitor snapshot. On average, each visitor spent $476 a day in 2019. Most visited during Lunar New Year and about half stayed for more than a week.

RealNZ eastern sales manager Li Li said Chinese tourists visiting Queenstown this summer were seeking “more experience-based trips”, and were willing to spend more on them.

“Their new favourites are Doubtful Sound Wilderness Cruise and Doubtful Sound Overnight Cruise.

“Compared to Milford Sound, Doubtful Sound is much larger, but it offers more enjoyment and is more expensive,” she said.

February bookings had been full, but there was “still some way to go” to reach pre-Covid levels, she said.

The Lunar New Year celebrations began on February 10 and ended on the fifteenth day of the first month in the Lunar calendar.

This day, called Shangyuan in Chinese, is the first full moon after the Lunar New Year, and this year falls on Saturday, February 24.