Two countries, two travel recoveries: Japan's success contrasts China's efforts to attract tourists.

In 2024, Japan is expected to attract a record number of tourists, as it consistently ranks highly on "Best Places to Travel" lists.

International visitors are returning to China at a much slower pace.

Both Japan and China lifted Covid-related border restrictions later in the pandemic, with Japan doing so in October 2022 and China in January 2023. However, their post-pandemic recovery paths have diverged since then.

Demand rises for both countries

The number of foreign visitors to China has increased by 130% year-on-year from January to July, according to the National Immigration Administration.

Since last summer, inbound bookings for summer trips have doubled on the travel website Trip.com, according to a representative who spoke to CNBC Travel.

Despite the increase in foreign arrivals, China's welcoming of travelers is still far below pre-pandemic levels.

Japan is facing challenges, not because of external factors, but due to its own popularity.

Since March, over 3 million international travelers have been visiting each month, which is significantly higher than the 2019 numbers.

The Japanese government's initiatives have contributed to the country's current "it" status, according to Joydeep Chakraborty, chief strategy and investment officer at the Southeast Asian travel app Traveloka.

He stated that the government has been concentrating on transforming Japan into a premier travel destination by implementing pro-tourism initiatives, including improving traveler experiences and streamlining the travel procedure for international tourists.

The depreciation of the yen accelerated these efforts, he said.

"From January 2024 to July 2024, the USD/JPY exchange rate shifted from around 140 to over 160, making Japan more affordable, as stated by Chakraborty," said Chakraborty.

Japan's overtourism is once again making headlines, with Kyoto's renowned temples being packed by crowds during peak cherry blossom season.

The labor market in Japan, which was previously one of the tightest in the world, is now struggling to keep up due to the pandemic. According to the Japan Federation of Service & Tourism Industries Workers' Unions, 85% of travel and hospitality operators had to limit their operating hours this year due to labor shortages.

Why interest to visit China is down

The airline analytics company Cirium reports that flight capacity from many countries, including the United States (-77%), into China is still below pre-pandemic levels.

According to the policy network East Asia Forum, geopolitical tensions are also affecting the region.

"An article on the Chinese government's website warns that tightening societal regulations could make foreign travellers uncomfortable in China, despite visa-free policies."

The expansion of visa-free policies in China is driving demand for travel. In the first half of 2024, 58% of arriving travelers originated from countries with such arrangements, as stated by the National Immigration Administration.

A Pew Research Center report indicates that over half of the 35 surveyed countries have unfavorable views of China. The July report reveals that major travel spenders, including those from the US, Germany, the UK, and France, mostly hold negative views of China.

The report shows that China's favorability views are highest in sub-Saharan Africa and Asia, but opinions are mixed in the latter.

The report states that views in the Asia-Pacific region tend to be among the most positive and negative, with middle-income countries like Malaysia and Thailand having more positive views and high-income countries like Australia, Japan, and South Korea having more negative views.

Difficulties getting around

Problems navigating around China may be keeping some at home too.

Due to the pandemic, China has increasingly relied on online payment and booking systems, which can be challenging for foreign travelers who are not familiar with popular Chinese software.

To attract foreign travelers back, it is crucial to address the issues, asserts Professor Songshan Huang of Edith Cowan University in East Asian Forum.

"To book high-speed train tickets or entry tickets to popular tourist attractions, it is necessary to use WeChat's built-in program. However, many establishments only accept WeChat Pay or AliPay, which can be a problem for foreign tourists who rely solely on cash or credit cards."