Decline in China’s Tourism Industry: Sanya Faces Challenges Amid Tourist Exploitation
China’s tourism industry, particularly in Sanya, is facing significant challenges this year. The unexpected decline in visitors has caused hotel and homestay prices to drop and bookings remain low. The ongoing economic downturn and incidents of tourist exploitation have contributed to this issue, leading some netizens to lament that China’s tourism industry has ruined itself.
The global economic downturn has had a profound effect on China’s tourism market. According to the National Bureau of Statistics of China, the country’s GDP growth rate slowed to 3.5% in 2024, compared to 6% in 2023. This economic slowdown has made people more cautious about spending, leading to fewer trips or no travel at all. A survey conducted by the China Tourism Academy revealed that domestic tourism revenue fell by 12.3% in the first half of 2024 compared to the same period in 2023. The decrease in disposable income has made travel a lower priority for many households.
In addition to the economic downturn, the tourism industry itself has contributed to the decline in visitors. Incidents of tourist exploitation in cities like Sanya have made visitors hesitant to return. Sanya, known for its beautiful beaches and tropical climate, has faced numerous incidents of overcharging and forced spending, tarnishing its reputation as a tourist destination.
A tourist visited Sanya last month and was struck by the noticeably low number of tourists. She pointed out the irony that Sanya aims to promote itself as an international free trade island, yet its reputation for overcharging is scaring tourists away. When people think of Sanya now, they often recall incidents where tourists were threatened underwater. According to a report by the local media, some divers had their masks removed by staff underwater, who then pressured them to pay for photos, leaving them terrified and with no choice but to agree.
At the end of November 2023, a woman and her family visited Sanya and encountered a distressing incident. Renting a villa, they were pressured into an underwater photography service costing 300 Yuan per person, despite declining it. During the dive, the staff removed their diving masks underwater, coercing them into paying for photos. Fearing for their safety, they reluctantly agreed. After paying, they complained to the villa owner and received a refund only on the condition they remain silent about the incident. This episode exemplifies the rampant exploitation tarnishing Sanya’s reputation.
A blogger shared that she was also scammed in Sanya and compiled tips to help future tourists avoid falling into these traps. Some tips include flying to Haikou first and then taking an intercity train to Sanya, avoiding buying island clothing, and using ride-hailing apps instead of following drivers or hawkers. According to a survey conducted by the Hainan Provincial Tourism Bureau, over 60% of tourists reported experiencing some form of exploitation during their visit to Sanya.
Forced spending incidents plague China’s scenic spots. This month, tourists on a Sichuan tour faced pressure to shop in sub-minus 10°C temperatures. Refusing to comply, their bus was left stranded in a remote area for almost 30 minutes, with threats from the tour guide to abandon them. The incident sparked public outrage and widespread coverage by Chengdu Business Daily.
Sanya continues to suffer from similar disturbing incidents. On March 16th, 2023, a female tour guide furiously berated tourists for spending only 1,000 Yuan at a duty-free shop. A tourist captured the outburst and shared it online, forcing authorities to intervene. Despite investigations, dishonest businesses and travel agencies persist. Since early 2024, over 50 travel agencies have faced penalties for unethical practices, yet the problem remains rampant and unresolved.
The decline in China’s tourism industry, especially in popular spots like Sanya, highlights the urgent need for reforms. The government’s delayed response has only recently led to steps aimed at addressing the deteriorating tourism experience. The Ministry of Culture and Tourism’s new regulations, designed to protect tourists’ rights and prevent exploitation, seem like a desperate move. These measures, including stricter oversight of travel agencies and mandatory fee disclosure, may be too little, too late, to repair the industry’s tarnished reputation.
Furthermore, the government is pouring resources into marketing campaigns to salvage the tarnished image of tourist destinations like Sanya. The “Rediscover China” campaign is a desperate attempt to highlight cultural and natural beauty while glossing over the exploitation issues. The projected 5% revenue increase by the end of 2025 seems overly optimistic given the industry’s current state.
China’s tourism industry is plagued by multifaceted challenges, including economic woes and rampant tourist exploitation. Sanya, once a top destination, now suffers from a severely tarnished reputation. The government’s inadequate response, combined with industry stakeholders’ negligence, leaves little hope for recovery. The industry’s prospects are bleak, and without drastic reforms, the situation may continue to deteriorate.
