The Impact of Declining Chinese Tourism on U.S. Hotels

The U.S. travel sector is facing challenges as the expected rebound in Chinese tourism is delayed. Experts suggest it could take at least two more years to reach pre-pandemic levels. This delay, caused by slow economic growth and high travel costs in China, has significant implications for U.S. hotels, affecting revenue and profitability.

AAHOA, representing about 20,000 U.S. hoteliers, emphasizes the impact of this downturn. In a recent Reuters article, AAHOA stated, "The decline in Chinese tourism has decreased revenue and profitability, leading to job losses and financial strain for employees and related workers who rely on international tourism for their livelihoods."

• In 2019, Chinese tourists spent $15 billion in the U.S., with each visitor spending an average of $4,137, well above the average for other overseas tourists. However, in 2023, the number of Chinese visitors to the U.S. remains 60% below 2019 levels.
• The decline in Chinese tourism is not only due to economic factors but also influenced by geopolitical tensions and the high cost of flights between the U.S. and China.
• Meanwhile, other countries in Southeast Asia have capitalized on this trend by offering incentives to Chinese tourists, with Thailand and Singapore seeing significant increases in Chinese arrivals in 2023.

While the outlook for Chinese tourism to the U.S. is expected to improve in 2024, it is unlikely to reach pre-pandemic levels until 2026. As the hospitality industry navigates these challenges, AAHOA is advocating for policies that support recovery while working to mitigate the financial strain on hotel operators and their employees.

Read the Reuters article