What: Time will be of the essence when it comes to the impact Chinese tourists will have on the global economy in 2023.

Why it is important: With rising inflation and concerns in the world, the joyful (and profitable) spirit of Q4 2022 might be well over, and returning Chinese tourists could be a boon for many retailers across the world.

In Thailand, Chinese tourists’ return is highly expected. However, it is challenging to know when to hire more workers and where to find them since many left the tourist region when tourism stopped. The Thai economy is heavily dependent on tourism and has lost out on billions of dollars from Chinese tourists over the past three years.

Tourism Authorities estimate that the city of Chiang Mai for instance will welcome back 600,000 Chinese visitors this year who will spend about $230 million. But real numbers won't start until the second quarter as the Chinese government is not allowing tour operators to restart their businesses until Feb. 6. There has been a shift towards more tech-savvy Chinese travellers taking trips on their own instead of group tours. Over the past decade, group tours have dwindled due to a crackdown on cheap zero-dollar tours. A hotel owner in Phuket believes that big tour groups will come back, but it is uncertain how big they will be.

In London, the Lunar New Year parade in Chinatown saw over 300,000 visitors last week, but few Chinese tourists were present. A restaurant-owner in central London stated he did not expect any travellers from China for the holiday, but is hopeful for their return in a few months. The business is expected to not suffer as 85% of its customers are Chinese students from nearby universities who are not returning to China.

Chinese tourists are returning to Britain and Australia, but their numbers are still far from pre-pandemic levels. The slow growth can be attributed to a lack of flights, higher ticket prices, visa requirements, and expensive COVID-19 tests for Australian travellers. Round-trip flights from China to London are around $1,300 and flights to Australia are between $1,800 and $3,000. Despite the eagerness of travel operators for the return of Chinese tourists, some worry about the industry's ability to keep up with an influx of tourists, as the industry has disappeared for two years and hiring back drivers and tour guides may be difficult. There are concerns about being able to accommodate them properly and provide high-quality service.

Chinese tourists are coming back, but when