China Market Has Changed — And So Should Our Tourism Strategy

Over coffee recently, someone said to me:

“Back then, the marina was full of coaches. Now you hardly see any buses. Has the China market disappeared?”

It’s a fair question — especially in Cairns.

For many operators, the old visual indicator of Chinese tourism was simple: big coaches, large group tours, fixed itineraries, and visible trade movement.

Today, that picture looks very different.

But different does not mean gone.

In fact, the China market is recovering strongly — just not in the same way as before.

The Numbers Tell the Story

According to Tourism Australia, arrivals from China crossed the 1 million mark in the year ending December 2025, marking a 17% increase compared to 2024. Chinese travellers also spent a record A$12.3 billion on their Australian trips, up 29% year-on-year. (tourism.australia.com)

This is significant.

It tells us something important:

China may not yet be fully back to 2019 visitor volume, but visitor spend has already returned as one of Australia’s most valuable inbound markets.

In simple terms:

Fewer people, but higher value.

And for luxury hotels, premium experiences, reef operators, and high-yield tourism products — that matters far more than headcount.

NSW Is Leading the Recovery

Destination NSW data shows that in the year ending March 2025, NSW welcomed 493,600 Chinese visitors, who stayed 19.1 million nights and spent A$4.3 billion. (Destination NSW)

By the year ending September 2025, Chinese visitor expenditure in NSW had reached a record A$5 billion, with 520,600 visitors and China becoming the state’s largest international source market. (Destination NSW)

China was also the highest contributor to visitor growth in NSW during 2025. (Destination NSW)

This is not a market in decline.

It is a market in transition.

Why You Don’t See the Coaches Anymore

Because the old model has changed.

The large, fixed-series group tours that once dominated inbound travel are no longer the main story.

Today, we are seeing:

• small family groups

• private FIT bookings

• mini-groups

• high-value leisure travellers

• luxury independent travellers

• customized itineraries booked through travel advisors

• domestic Chinese residents already living in Australia travelling interstate

Many of these travellers still use travel agents in China.

But they are not joining 40-seat coach tours.

They are booking private airport transfers, premium day tours, luxury stays, reef experiences, and curated itineraries.

Some stay at nearby hotels and simply walk to the marina.

That is why the buses are gone.

Not because demand disappeared — but because traveller behavior changed.

Cairns: The Opportunity Is Different Now

Cairns has traditionally relied heavily on traditional trade channels and large group series business.

That model worked well.

But today, relying only on that model means missing where the market is actually moving.

Recovery in Cairns may feel slower than Sydney or Melbourne, partly because the visitor profile has shifted faster than many operators expected.

Today’s Chinese traveller is influenced by:

• Xiaohongshu

• WeChat ecosystem recommendations

• trusted KOL and peer reviews

• niche travel planners

• boutique travel agencies

• high-conversion trade partners

This means both B2C and B2B matter.

Not one or the other.

Both.

Digital Alone Is Not Enough

Many operators now ask:

“Should we just focus on Xiaohongshu?”

The answer is: no.

Digital visibility is critical — but digital alone is difficult to measure directly.

You may gain awareness, visibility, and stronger conversion intent, but attribution is not always simple.

At the same time, B2B trade relationships remain highly measurable:

Who brought the booking?

Which market converted?

Which trade partner is still producing?

That visibility matters.

Especially for hotels, luxury operators, and destination partners.

The smartest strategy is not replacing trade with digital.

It is integrating both.

The Real Shift

The China market is no longer about waiting for the old buses to return.

It is about understanding where the new demand is already coming from.

The question is no longer:

“How do we get the old market back?”

The better question is:

“How do we capture the new one?”

That requires:

• smarter market representation

• stronger trade continuity

• China-specific digital visibility

• luxury and FIT-focused positioning

• practical execution, not just campaigns

Because the market has already changed.

The strategy needs to catch up.

And for destinations like Cairns, that opportunity is still very much alive.

Sometimes, it just arrives on foot instead of by coach.