stic travel volume is now 90 per cent of 2019 figures, and spending has bounced back to around 70 per cent of pre-pandemic levels. According to the World Tourism Organisation, before the pandemic,  mainland China had the largest outbound travel market in the world, both in number of trips and total spend. In 2019, mainland Chinese tourists took 155 million outbound trips, totaling US$255 billion (A$383.6 billion) in travel spending.  China is an important source market for some major destinations. For instance, Chinese travellers made up 28 per cent of inbound tourism in Thailand, 30 per cent in Japan, and 16 per cent of non-EU visitors to Germany. A recent McKinsey & Co survey showed that the top three overseas travel destinations for Chinese tourists, beyond Hong Kong and Macau, were Australia and New Zealand, Southeast Asia and Japan.  Nonetheless, the firm noted that international airline seating capacity has only recovered to around 37 per cent of pre-pandemic levels, so travellers may be faced with elevated ticket prices in the coming months.  A positive sign According to Xiaofeng Wang, principal analyst at Forrester, the relaxation of travel restrictions will accelerate the recovery of both Chinese outbound and inbound travel.  “In China, it will particularly benefit two sectors: duty free shops in airports as Chinese outbound travellers are the primary buyers and souvenir shops that offer tea and silk in China as inbound travellers are the primary buyers,” she told Inside Retail. Wang said the return of Chinese tourists is good news for overseas retailers as well. Nonetheless, she feels that a challenge for retailers will be in catering to digitally savvy Chinese consumers. “Chinese consumers are used to discovering and buying products on their phones. When they travel, they’d prefer the same convenient experience. If they can place the order online beforehand, it would save them time,” she noted. Data is important She also feels that retailers need to start leveraging data and insights to provide a better shopping experience. Monitoring trending items and real-time inventory to make sure popular items are available is also a good move. “Maybe leverage loyalty programs or membership, use digital channels or incorporate contextual data (such as weather) to understand customer needs and provide more personalised and relevant offerings and services,” she added. Wang also believes that the tourism industry and hospitality services will experience a recovery as domestic tourism will remain one of the main growth drivers, while inbound (international tourists to China) will slowly recover. Highly optimistic According to Glenn Cross, chairman of EZZ Life Science, which sells vitamins, dietary supplements, skincare and other health products in Australia, New Zealand and China through its brands EZZ and Eaoron, the recovery of Chinese tourism will have a positive impact on the Australian retail industry. “Prior to the pandemic, Chinese tourism retail contributed billions of dollars to Australia’s economy, highlighting the significant potential for growth with the relaxation of travel restrictions,” he told Inside Retail. To capitalise on the travel rebound, he thinks Australian retailers should focus on key areas such as staff training, updating signage, optimising product selection, and ensuring availability to cater to the evolving needs and preferences of Chinese tourists. “The travel rebound presents numerous opportunities for retailers in Australia. The pandemic has prompted a heightened focus on health among the Chinese population, making healthcare products a popular category even prior to Covid,” he said. Holistic strategies Cross believes that retailers in Australia need to take strategic steps to maximise their appeal to Chinese visitors as they resume travel. It is crucial for them to restock products that were popular among Chinese tourists in pre-pandemic times, due to the anticipated surge in demand. “There may be an increased demand for luxury goods, cosmetics, fashion items, and unique cultural experiences. Chinese visitors have also generally become very exploratory and tend to seek out more unique experiences and products,” he said. In his opinion, retailers should prioritise providing personalised and tailored experiences to enhance customer satisfaction. Leveraging technology and digital platforms to enhance and facilitate convenient transactions will further contribute to their success. Key trends Cross feels that several key trends will define the Chinese tourism industry this year. These include a heightened emphasis on sustainable and eco-friendly travel options, and a growing interest in experiential and immersive travel experiences. “There will also be an increased integration of technology and digital solutions in travel services, and a rising demand for off-the-beaten-path destinations and unique cultural experiences,” he stated. He believes that Chinese tourists present abundant opportunities for retailers, as access to a large and continuously growing market of visitors with increasing disposable incomes could open doors for substantial business growth.  Additionally, Cross thinks there is a chance to tap into the demand for unique and authentic products that reflect Australian culture and heritage catering to the preferences of Chinese visitors.  “Leveraging digital platforms and social media channels will also enable retailers to reach and engage with Chinese travellers effectively,” he concluded.