Travel players count on China for revival

Hard-hit sector in US wants improved ties to hasten rebound from pandemic

The US tourism industry wants the government to improve relations with China to speed up the recovery of one of the sectors hit hardest by the COVID-19 pandemic.

Business travel is forecast to take about three years to recover, and international inbound travel is projected to take about four years to get back to 2019 levels of spending and employment, said Erik Hansen, vice-president of government affairs at the US Travel Association.

"That's far too long to wait," Hansen told a recent forum hosted by the US-Asia Institute, a United Nations-associated organization. One step the government can do is to make it a priority to restore international travel, particularly between the US and China, he said.

International travel is the largest service export and the second-largest industry export for the US. Tourist economic activity supports 1.2 million jobs in the US directly, without counting the secondary economic impacts, Hansen said.

"When you look at that big picture, China is a cornerstone of the economic activity that takes place for international travel and international exports," he said, adding that for more than a decade, "a significant cornerstone" of the industry association's advocacy has been focused on increasing travel between the US and China.

In 2019 Chinese visitors were the fifth-largest inbound market by volume, and the largest market in terms of spending. More than $33 billion in export spending was generated by Chinese visitors that year, more than any other country, said Hansen. In doing so, the Chinese market eclipsed those of Canada and the United Kingdom for the first time.

"So, the Chinese market before the pandemic was growing at an exponential rate. It had become a foundational cornerstone," he said.

Mary Beth Sewald, president and CEO of the Las Vegas Chamber of Commerce, said that in 2019 almost 3 million Chinese tourists visited the US, and they spent about $6,700 each per trip, higher than for any other international visitors to the US.

Beneficial relationship

"Tourism trade between the US and China has really grown significantly over the past 10 to 15 years. It's become a very beneficial trade relationship for the US travel industry, with Chinese tourism and trade shows contributing billions of dollars to the US economy," she said.

Noting the pandemic's "incredibly hard" impact on the hospitality and tourism industry, Bill Miller, president and CEO of the American Gaming Association, said: "Chinese visitation continues to be something that is missing, and it's a hole in our industry."

In 2019, 205,000 Chinese visitors visited Las Vegas, and that was nearly double the number from 2010, Miller said. "The international visitors to Las Vegas are critical, so we need to get that back as quickly as possible," he said.

Not only major metropolitan areas such as Las Vegas, but the whole country has enjoyed the economic benefits from Chinese visitors, including rural communities, Hansen said.

Calling the tourism industry "a bright spot" in the US-China relationship, Hansen said the people-to-people exchanges promoted by the industry will help bolster bilateral relations.

"When an American visitor goes to China or a Chinese visitor comes to the United States, that deeper cultural appreciation that we have for the daily lives of other people is really strengthened," he said.

"Multiple surveys have shown that once you visit a country and you return home, you're more likely to want to support policies that promote greater economic cooperation between the two countries, and you're more likely to want to do business in that country."