Yunnan Travel – How COVID-19 pandemic affect Yunnan tourism

The COVID-19 pandemic has had a significant impact on Yunnan’s tourism industry. The number of tourists has sharply declined, and tourism-related businesses are facing operational difficulties. Numerous travel agencies, hotels, and businesses around scenic areas have suspended operations or closed down. The upstream and downstream sectors of the industry chain, such as transportation, shopping, and entertainment, have also been severely affected, with inbound and outbound tourism nearly coming to a standstill. However, the pandemic has also accelerated the transformation of Yunnan’s tourism industry, promoting the advancement of smart tourism.

Negative Impacts

Sharp Decline in Tourist Numbers and Revenue

Overall Decline: In 2020, under the severe impact of the COVID-19 pandemic, Yunnan Province (云南) is expected to receive over 530 million domestic and international tourists throughout the year, recovering about 65% compared to the previous year. The total tourism revenue is projected to reach 678 billion yuan, recovering about 60% compared to the previous year.

Localized Impact: After the outbreak of the Ruili (瑞丽) pandemic in 2021, the tourism-related industries in Xishuangbanna (西双版纳) were significantly affected. The number of team tours and scenic area visits decreased, and tourism industry revenue dropped by nearly 30%.

Operational Difficulties for Tourism Enterprises

Closures and Suspensions: A large number of tourism enterprises, such as travel agencies, hotels, and restaurants and retail shops around scenic areas, faced operational difficulties due to pandemic control measures and a sharp decline in tourist numbers. Many small businesses and individual entrepreneurs could not withstand the long-term operational pressure and had to suspend operations or even close down.

Financial Pressure: With a sharp decline in revenue but ongoing operational costs, companies faced tight cash flows, struggling to pay rent, employee salaries, loan principal, and interest. Some companies found it difficult to recover quickly even after the pandemic eased.

Setbacks in the Upstream and Downstream Industry Chain

Transportation: Passenger traffic related to tourism, including aviation, railways, and highways, dropped significantly. Tourist buses were idle, airlines reduced flights, and railway departments’ tourist train services were also greatly affected.

Shopping: Tourist shopping venues saw a significant drop in foot traffic. Sales of tourism goods such as jewelry, jade, and specialty handicrafts plummeted, leading to the closure of many tourist shopping stores.

Entertainment: Tourist performance venues, such as “Impression Lijiang” (印象丽江), faced restrictions on audience numbers or were unable to perform during the pandemic. Performers faced reduced income or even unemployment, and the development of related industries was hindered.

Stagnation in Inbound and Outbound Tourism

Inbound Tourism: International travel restrictions and pandemic control requirements made it difficult for foreign tourists to enter Yunnan (云南). The rich tourism resources of Yunnan could not attract international tourists, and the inbound tourism market was essentially at a standstill.

Outbound Tourism: Outbound tourism for Yunnan residents was also strictly restricted, suppressing the demand for outbound travel and severely impacting travel agencies and other businesses engaged in outbound tourism.

Positive Impacts

Accelerated Industry Transformation

The pandemic has prompted Yunnan’s tourism industry to accelerate its transformation and upgrading, shifting from traditional sightseeing to diversified formats such as leisure vacations, residential tourism, cultural exploration, and wellness tourism. This has given rise to new products and experiences such as high-end mountain hotels, wellness resorts, outdoor sports, and self-driving camping.

Promotion of Smart Tourism Development

To reduce human contact and improve tourism service efficiency, smart tourism platforms like “One Mobile Phone Travels Yunnan” (一部手机游云南) have been more widely applied and promoted. Smart tour guides, smart restrooms, and facial recognition entry systems have become more prevalent in scenic areas.

Improved Industry Governance

During the pandemic, the government strengthened the supervision and governance of the tourism market, further standardizing market order and improving the tourism complaint handling mechanism. This has created a better environment for the long-term development of the tourism industry.

Growth in Local Tourism

Under the normalization of pandemic prevention, local and regional tourism markets such as “Yunnan People Traveling Yunnan” (云南人游云南) have seen some development. Residents have gained more understanding and experience of local tourism resources, prompting tourism enterprises to pay more attention to local market demands and develop tourism products and routes suitable for local tourists.

Summary

Under the impact of the pandemic, Yunnan’s tourism industry has suffered a severe blow. The number of tourists has sharply declined, with the number of visitors and revenue in 2020-2021 far below that of 2019. Many tourism enterprises faced operational difficulties, and some even went bankrupt. The upstream and downstream industry chains, such as transportation, shopping, and entertainment, were also severely affected, with inbound and outbound tourism nearly coming to a halt. However, the pandemic has also forced the industry to transform, accelerating the development of smart tourism and promoting the rise of local tourism.