Why more Chinese tourism means more capital flight
Many billions of dollars escape under the cover of holidays
A railway tour of Laos, a trip to the far corner of Russia to see the Northern Lights, or a polar cruise in the Arctic. These are some of the adventurous options being marketed in China as the country reopens. The urge to travel seems strong: Ctrip, a travel agent, has reported a quadrupling of inquiries in the space of a month; students are searching more for study-abroad opportunities, too. In Macau, a gambling centre, two of the fanciest hotels are fully booked this month. If pre-pandemic patterns reassert themselves, China’s travel spending could increase by $160bn this year, according to Natixis, a bank.
This article appeared in the Finance & economics section of the print edition under the headline “In full flight”
Finance & economics February 18th 2023
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