Covid-19 Effect on China's Travel and Tourism Industry

The Travel Industry Overview

The travel industry is a broad sector that encompasses major service areas such as tourism products, travel agents, destination marketing, suppliers, and more (Knowles & Westcott, n.d.). There is no universal definition for tourism; however, Britannica describes tourism as the ability to travel away from home to find relaxation, pleasure, engage in a service, or for recreational purposes (Walton, n.d.). Examples of tourism sectors include hotels, restaurants, attractions, events and conferences, and adventure activities. The travel and tourism industry have a symbiotic relationship where both sectors rely on each other for success (Travel and Tourism Industry, n.d.).

Every industry has a product or service that is being sold. Unlike many other industries, travel and tourism products and services are intangible, meaning they cannot be touched. The success of a tourism product relies on whether or not it makes the customer feel good. People may love trying new things, but may need some motivation to purchase the intangible tourism product being sold, and this is where marketing plays a crucial role. In travel and tourism, marketing involves the use of strategic planning and developing techniques to promote a destination or tourism-related product/service. Like travel and tourism, sales and marketing share a symbiotic relationship. Sales involves direct efforts to sell tourism products. Both sales and marketing work together to create and develop strategies to help the tourism product grow and generate revenue.

In order to market successfully, marketers are required to conduct thorough research. They must determine both their target market and potential market. Like every other industry, there are some avoidable and unavoidable challenges. One of the biggest problems the travel and tourism industry faces is disease outbreaks.

COVID-19 Effect on China's Travel and Tourism Industry

China is located on the continent of Asia, covering 9,596,961 square kilometers of both land and water, making it the 4th largest nation in the world. China consists of 26 provinces, with Beijing as its capital. The overall population of China is 1.386 billion people. As of 2018, Beijing accounts for 21.54 million of the people living in China. The currency of China is the Yuan Renminbi (CNY), more commonly known as Chinese money, which equates to 0.14 of the U.S. Dollar.

China is a country rich with history dating back over 3,000 years, making it famous for landmarks that reflect its rich history. From the infamous Great Wall of China located on the northern borders, to the Forbidden City, home to thousands of historical antiques located in the country’s capital, China boasts 55 World Heritage Sites (China’s Top 6 Landmarks, 2019). According to Statista, the tourism industry is one of the industries that makes a substantial contribution to the global economy (Global Travel and Tourism Industry, 2018). Over the years, China has recognized the profitability of the industry and used its resources to contribute to and benefit from the growing industry. Chinese people are making more money, allowing them to increase their spending and travel habits. As of 2019, China has been ranked 4th in their inbound tourist statistics, bringing in 60.7 million dollars in revenue (Mike, 2020).

Sadly, disease outbreaks have a negative effect on marketing for China’s travel and tourism because they disrupt markets and patterned traveling behavior, resulting in the decline of global travel, causing Chinese tourism-related businesses to lose revenue. The Democratic Republic of Congo experienced an Ebola outbreak in 2014, and the United Republic of Tanzania was affected by cholera in 2016. China has been the center of several disease outbreaks including the flu pandemic of 1968, Asian flu (1956), and SARS (2003). Now, the world is at a standstill as we watch China battle the coronavirus, COVID-19.

China's response to these challenges has included significant investments in healthcare infrastructure and public awareness campaigns, aiming to restore confidence in travel safety. This effort is essential for reviving the travel and tourism sector, which remains a critical pillar of China's economic landscape.