Chinese flights surge, just not overseas yet – and that keeps travellers’ money in China’s economy

Even with infection numbers on the rise across China, its domestic travel sector is enjoying a strong pickup in line with a recent easing of Covid restrictions, and analysts expect that the eventual full reopening will benefit regional economies. Over the past weekend, the number of flights at Beijing’s two international airports more than doubled compared with the same period last year, the official Xinhua reported on Monday. The numbers have recovered to around 70% of the levels seen in 2019 before the pandemic, the report said, as the country has removed testing requirements and cross-provincial travel restrictions. China’s mobility index also increased by 11.9 % last week compared with the week prior, according to Everbright Securities. Flight tracker VariFlight said the number of domestic flights across the country surpassed 5,800 on Friday, after increasing for six consecutive days. The improvement came after China pivoted in its zero-Covid policy, which had been in place for the past three years, with a total of 30 announced measures, including a long-awaited easing of quarantine requirements. “It’s just a matter of time before China reopens and allows domestic residents to travel overseas [unrestricted], and that will be a major positive development for many countries,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management, with the likes of Japan, South Korea and those in Southeast Asia set to benefit. “But timing-wise, there’s uncertainty. The government’s priority is to boost domestic demand, so if they allow Chinese to travel overseas without limit, money might be spent overseas rather than in China. So, I wonder whether the government will open immediately.”<br/>