The recovery of inbound tourists has been delayed significantly

• The number of domestic tourists in Beijing has exceeded the figures from the same period in 2019. According to the Beijing Municipal Bureau of Culture and Tourism, domestic tourists in Beijing reached 250 million, an increase of 2.1% compared to the same period in 2019. Domestic tourism income amounted to RMB 430 billion, a decrease of 1.2% compared to the same period in 2019. 
• In contrast to domestic tourist numbers, the recovery of inbound tourist numbers has been relatively slow. As of 3Q23, the number of inbound tourists in Beijing was 751,000, representing only 26.6% of the same period in 2019.

The market maintains a relatively limited new supply

• In 2023, there was no new supply of upscale hotels in Beijing for the entire year. It is projected that the Renaissance Beijing Haidian Hotel will open in the first quarter of 2024, making it the third Renaissance-brand hotel established by Marriott International in Beijing. 
• Stock in the Chinese hotel market is gaining prominence, and in Beijing, the slow pace of new supply is particularly evident. The key concerns for hotel owners are revitalising their existing assets, upgrading and renovating their properties, and finding new ways to utilise them effectively.

Beijing market recovers to 88.3% of pre-pandemic levels

• As of YTD December 2023, the occupancy rate in Beijing’s upscale hotel market reached 66.5%, with an average daily rate (ADR) of RMB 1,110 and a revenue per available room (RevPAR) of RMB 738. The ADR has reached the same level as the same period in 2019, while the occupancy level and RevPAR are at 88.1% and 88.3%, respectively.
• In 2023, the Beijing market witnessed the highest RevPAR during the summer vacation, exceeding the 2019 levels. However, there was a slight drop in the last three months of the year.

Outlook: Visa policies are expected to boost inbound tourism

• In December, six countries, including France, Germany and Italy, were granted unilateral visa-free entry, leading to a significant increase in tourist arrivals from these countries. The number of incoming tourists per day has seen an increase of about 40% since the implementation of the visa-free policy.
• On 7 December, Singapore announced a 30-day visa-free arrangement with China to strengthen personnel exchanges, based on increasing flights between the two countries. Russia also plans to establish a new visa-free group-tourism agreement with China. The expectation of gradually relaxed visa policies should further boost China’s inbound tourism market.