China’s Outbound Tourism as a lever for China’s international politics

In a recently published research paper, Dr Tony Tse of the School of Hotel and Tourism Management (SHTM) at The Hong Kong Polytechnic University assimilates Chinese outbound tourism policy to a form of soft diplomacy, to a strong ‘political tool’ that allows China to have a great influence on international relations and extend its soft power (PolyU Study Finds Chinese Outbound Tourism Policy a Form of Diplomacy). China concentrates around 1.4 billion of potential overseas travellers on its territory, needless to say what it represents in terms of revenue for destinations that welcome them, or better said ‘that are lucky enough to have the right to welcome Chinese tourists’ .

In other words, China, using its tourism policy, and mainly the Approved Destination Status Agreement (see our post on ADS policy) , can direct its flow of tourists and thus support a country’s tourism sector by encouraging its citizens to visit it, or on the contrary undermine it by reducing access to it. As of the end of 2013, 146 countries had signed a bilateral agreement with China and were on the ADS list, a real boon as it gives them the right not only to welcome Chinese tourists groups (independent travellers are not included in the ADS policy) but also to advertise their destination in China via approved travel agencies. The UK signed the agreement in January 2004 and has since seen a good increase in the number of Chinese Tourists arrivals to almost 200,000 last year. 

Being granted a spot on the list is not a not at all a straightforward matter. Any political or economic disagreement with China, any critics directed to the country, any public act that can be considered as an offense (such as meeting the Dalai Lama) emanating from a country not yet enlisted and obtaining the precious pass can be delayed for several months or years. For instance, it is only after it extradited a Chinese national charged for corruption in China, that Canada was granted the ADS. In his study Dr Tse, highlights that China is prepared to “manipulate ADS to add clout to its soft power and advance diplomatic discussions”.

Even if a country benefits from the ADS, the Chinese government can still use tourism flows as a mechanism to show support or as a reprisal method with any countries it has some disagreements with. Dr Tse illustrates that China encouraged its citizens to travel to Thailand after the tsunami in 2004, and on this occasion, Air China opened new airlines routes between the two countries. On the other hand, Dr Tse underlines that ‘during the territorial dispute with Japan over the Diaoyu Islands, many of China’s leading travel operators stopped promoting Japan. Others cancelled trips and refunded their customers. This led to an estimated 70% fall in Chinese tourist receipts in the country during 2012.’

On the same topic, Roy Graff, ChinaContact MD, pointed out in a previous article (Nationalism rises ahead of National Day) that “ The precarious nature of the Chinese outbound tourism sector is something that is important to understand. Before Japan, other countries have experienced similar boycotts. The Philippines saw a drastic drop in the number of Chinese arrivals when it got into a dispute over islands. […] Norway became an undesirable destination after the Nobel Prize Committee awarded the Nobel Peace Prize to Liu Xiao Bo. Even France saw a glut in tourism arrivals following the Paris Mayor meeting with the Dalai Lama.”

Outbound tourism is a strong political tool that allows China to not only control the global tourism sector today but also to shape international relations at its liking. Any destination wishing to dip into in these “walking wallets’ will need to adapt to China’s standards, and will have to remember that its international politics will influence the flux of Chinese tourists on its territory.

Roy concludes that “There is no prescription for this. In China economics and politics are always interwoven and anyone that does business there must be aware and be vigilant. As an observer of the industry since 1998 I at least find comfort in the knowledge that the long term trend is for more people from China to travel abroad, get to know other cultures and make friends in other countries. International travel can build bridges that over time, may lessen the ability of governments or media to influence the masses to such a degree.”