Singaporean media Lianhe Zaobao published an article on the 14th stating, 'Economic slowdown impacting consumer sentiment, Chinese outbound (overseas) travel in the second half of the year is expected to fall below previous forecasts.'

According to the article, citing a Bloomberg report, marketing and travel data company China Trading Desk revised down its forecast for Chinese outbound travelers in 2026 by about 3% from its June estimate, to approximately 179 million people in total. Spending at destinations is expected to reach about $258 billion (approximately 41 trillion yen).

A representative from the company pointed out that 'Chinese consumers have not lost their desire to travel, but they are becoming more cautious in judging whether a trip is worth it.' While those who actually travel largely maintain the same budget as before, the weakness is seen in the frequency of travel.

Regarding this, the report analyzes that 'economic difficulties due to the slump in China's real estate market are causing consumers to curb non-essential spending, weakening demand for outbound (overseas) travel.' Additionally, turmoil from conflicts in the Middle East is also suppressing long-distance travel.

The article also stated that 'geopolitical tensions and security concerns are reshaping the regional travel landscape,' reporting that 'Chinese airlines have reduced flights to Japan due to diplomatic friction over the Taiwan issue' and 'Thailand's attractiveness as a travel destination has declined due to security concerns.'

However, despite the downward revision in forecasts, Chinese outbound (overseas) travel continues to increase year-on-year, with the number of travelers expected to exceed 2025 by 7%.

Meanwhile, as destinations are re-evaluated, relatively nearby regions tend to be preferred. Hong Kong and Macau take the lead, accounting for about 40% of the outbound market combined. Furthermore, South Korea has become the biggest winner amid changing travel destinations, expecting to welcome 7 million Chinese tourists and generate approximately $13 billion (approximately 2 trillion yen) in spending this year. (Translation/Editing: Noya)