Industry reshaped in patchy pandemic

Further support has been pledged for China's tourism industry by the central government, with national political advisers and legislators recommending product upgrades and innovation.

The Government Work Report delivered by Premier Li Keqiang during the recently concluded two sessions－the annual meetings of China's top legislative and political advisory bodies－stated that greater policy support will be given to industries including food and beverage, accommodation, retail, culture, tourism and passenger transport, which employ a large number of people and are highly vulnerable to the impact of COVID-19.

"Tax refunds alone for industries including food and beverage, tourism, passenger transport and culture will amount to 180 billion yuan ($28.3 billion)," Li said at a news conference on March 11.

"In addition to fiscal support," Li added, "we encourage financial institutions to provide loan extensions on a seamless basis for promising businesses. We also urge local governments that are financially strong to offer temporary cuts or exemptions on rental and electricity bills to these market entities when needed."

According to figures from the Ministry of Culture and Tourism, the country recorded 3.25 billion domestic trips in 2021, 12.8 percent higher than the previous year, but only 54 percent of 2019 figures.

Some tourism businesses took a turn for the better last year compared with the lows during the peak of the pandemic.

Out of 24 culture and tourism companies listed in the A-share market, 15 reported an increase in net profit or at least a decrease in losses last year compared with their 2020 performances, according to the Guangzhou-based 21st Century Business Herald newspaper.

On March 4, BTG Homeinns Hotels announced that it managed to get back in the black in 2021, achieving 6.15 billion yuan in revenue.

"The hotel industry saw a marked recovery last year as COVID-19 infections receded, despite disruptions caused by regional outbreaks or sporadic flare-ups in the country," BTG Homeinns Hotels said in the announcement.

The company hit a new high in hotel openings last year, with 1,418 new properties added to its portfolio. This was an increase of around 56 percent year-on-year.

For some scenic areas in the country, 2021 remained a tough year.

Out of 12 destination management companies listed in the A-share market, only five pulled themselves out of the red or reported smaller year-on-year losses in 2021, 21st Century Business Herald reported on March 11.

Lijiang Tourism Group, based in Yunnan province, achieved revenue of 358.35 million yuan in 2021, down 16.87 percent year-on-year.

Interprovincial tourist travel was suspended three times in Yunnan in 2021 due to COVID-19, the company said in its annual report.

The suspension period included the peak tourist season in August and the events and exhibitions season from November to December, which "dealt a heavy blow to the company's business".

Travel agencies on the whole performed better than during the depths of the pandemic. Figures cited by 21st Century Business Herald show that domestic travel agencies recorded 92.91 million trips last year, up 24 percent year-on-year.

"COVID-19-induced difficulties will still be around this year," an industry insider told 21st Century Business Herald. "However, in preparing for the changes in consumer demand in a post-pandemic world, we (the culture and tourism industries) also see opportunities for reform and innovation."

Doryang Lhamo, an official with the tourism authority of Chengdu and a national political adviser, suggested that new technologies such as big data, cloud computing, the internet of things and virtual reality be applied to tourist attractions to enhance the tourist experience and increase interaction, China Tourism News reported.

She advised a greater effort toward the independent development of innovative and high-end tourist facilities and equipment, such as amusement facilities, cable cars, and equipment for activities on ice and snow.

Qian Fangli, a national legislator and director-general of the department of electronic commerce and informatization at the Ministry of Commerce, suggested that e-commerce platforms be encouraged to strengthen cooperation with local governments and businesses to develop more tourist offerings.