Chinese tourists in Germany are expected to decrease. This will have a profound impact on the industry. Not only economic conditions, but also changing travelling habits are influencing the situation.
In recent months, a trend has developed among young Chinese people: so-called ‘revenge saving’. This term describes the reaction of many young people in China to economic uncertainties and fears about the future by drastically reducing their spending and saving more. This need to save could have a significant impact on global tourism, especially in countries such as Germany, which traditionally benefit from Chinese tourists.
What is ‘revenge saving’?
Originally, it was expected that after the strict COVID-19 measures in China, a phenomenon of ‘revenge consumption’ would occur, with people using their pent-up purchasing power to consume and travel more. Instead, we are now seeing the opposite: young Chinese people are making a conscious decision to minimise their spending and build up financial reserves. The reasons for this include
- Economic uncertainty: the Chinese economy is slowing down and many young people are worried about their professional future.
- High youth unemployment: The unemployment rate among young people has risen, which increases the need for financial security.
Changing values: A cultural shift is taking place where frugality and long-term financial planning are becoming more important.
Impact on tourism to Germany, Austria?
Before the pandemic, China was one of the fastest-growing source markets for international tourism. In 2019, around 1.6 million Chinese tourists visited Germany. The majority of these travellers belonged to the younger generation under the age of 40, who were known for their propensity to travel and consume.
However, with the rise of ‘revenge saving’, we could see a significant drop in these numbers in the coming months to two years:
- Less travel bookings: Tour operators are already reporting a drop in demand for overseas travel among young Chinese men and women.
- Changed travel behaviour: Those who are still travelling may prefer cheaper alternatives or shorten their length of stay.
- Lack of spending: Chinese tourists are known for their high per capita spending, especially in the luxury segment. A decline could have a direct impact on the retail and catering sectors.
Focus on specific sectors
Certain sectors in Germany could be particularly affected:
- Retail: luxury brands and shopping centres traditionally frequented by Chinese tourists could see a drop in sales.
- Hotels and restaurants: Hotels and restaurants that specialise in Chinese guests may have to adjust to fewer bookings.
- Tourism services: Tour guides, translation services and cultural facilities could see a drop in demand.
Long-term prospects
While short-term effects may already be noticeable, the question is what the long-term effects will be:
- Adjustment of strategies: tourism companies will have to rethink their marketing strategies and possibly turn to new target groups.
- Diversification of markets: A stronger focus on other growth markets may be necessary to compensate for losses.
- Innovation: Developing offers that meet the changing needs and budget-consciousness of travellers.
Conclusion
The trend of ‘revenge saving’ among young Chinese is a signal of a profound change in consumer behaviour. For Germany as an attractive travel destination and important trading nation, it is essential to monitor these developments closely and respond proactively. By adapting and innovating, companies and sectors can meet the challenges and capitalise on new opportunities.
Sources and further information:
-n-tv.de: Revenge saving: New trend makes China’s youth save extremely
-Statista: Statistics on tourism from China to Germany.
-South China Morning Post: Reports on the changing consumer behaviour of young Chinese.
-German Tourism Association: Current developments and forecasts in tourism to Germany.
This article was published by Dittlmann & Partner 🔥🔥🔥ICC to provide insights into current global trends and their impact on Germany. We keep our finger on the pulse for you.
