World awaits return of Chinese tourists

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Good evening.

Today is a red-letter day for global airlines, hotels and luxury businesses: the Chinese are back.

For the past three years, the world’s largest tourist population has been cut off from the rest of the world by Beijing’s strict “zero Covid” policy, which quarantines arrivals but allows Chinese citizens to travel again. without fear of isolation upon return.

Hong Kong is one of the first places to benefit. Thousands of people flowed back and forth between the city and the mainland as internal borders opened yesterday.

While the move will allow families to reunite, Hong Kong’s luxury goods stores, the lifeblood of its retail sector, lost its position as the world’s most expensive shopping district to New York last year. The 353-billion-euro global luxury market could see a 6-8 percent gain in sales this year, with Japan in particular poised for early growth, according to consulting firm Bain.

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While limited commercial flights and a backlog of visa applications mean the rest of the world will have to wait a little longer to feel the benefits of China’s reopening, the rewards are significant: 155 million Chinese traveled abroad in 2019 and spent $255 billion before the pandemic. , according to Citi. According to the China Foreign Tourism Research Institute, there will be 18 million international trips in the first half of the year, followed by 40 million in the second half.

Asian airlines, boosted by the reopening of Japan in October, are clear beneficiaries. The Asia-Pacific region saw the biggest growth in passenger traffic last year, despite being slower than the rest of the world to ease restrictions.

Also set to benefit from the lifting of travel restrictions are Macau’s casinos, which have missed out on Chinese high rollers who previously accounted for half of gaming revenue in the city, the only place in China where casino gambling is legal.

Asia business editor Leo Lewis noted that the return of the “titan of the collective world” is not only important economically, but also helps to restore negative views about the country that took root during the pandemic.

“It’s no coincidence that the narrative of China’s breakup with the West seems more plausible than it does in 2019, when Chinese business leaders, mid-level executives and shopaholic middle classes are traversing the planet by the tens of millions,” Lewis said. writes.

It will also help change the narrative that Beijing has silenced global business, he says. “The resurgence of China’s overseas travel is not a panacea for the onset of disengagement and deglobalization,” he concluded, “but it could reinvigorate the voices of those who want it to slow down.”

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Must know: UK and European economy

The UK government is exaggerating recent benefits financial reforms and being “silly” in arguing that they had a Brexit dividend, according to the Conservative chairman of the main parliamentary committee.

IrelandThe residential investment scheme is a big hit for wealthy Chinese. Since its inception in 2012, Chinese investors, including Hong Kong investors, have made up more than 90 percent of successful applicants, with a total of €1.18 billion invested.

Must Know: World Economy

If investors want to avoid last year’s mistake, they will count on growth global inflation would be short and shallow, they need to understand that the slowdown in China, the EU and the US is happening for different reasons, says investment expert Mohamed El-Erian.

survey on foreign policy experts Russia has become a failed state, China has attacked Taiwan, and at least one more country has predicted it will acquire nuclear weapons, drawing attention to a decade of political turmoil.

Europe was the world’s largest importer liquefied natural gas In 2022, it tried to replace pipelines from Russia, bypassing Japan and China. With Europe’s need to refill storage facilities, the global LNG market remains tight, which could raise prices for gas users around the world.

Bar chart (million tonnes) showing EU outpacing competitors in LNG imports

Governor of the Central Bank of India Shaktikanta Das The FT said it was concerned about debt levels among its regional trading partners, but optimistic about its country’s growth prospects.

Must know: business

As Wall Street banks prepare to report their fourth-quarter earnings, the FT revealed Goldman Sachs could begin cutting up to 3,200 jobs in a day in an effort to curb costs. The cuts are the deepest Goldman has made in its recent history and steeper than the plans of its peers. The Lex column (for premium subscribers) shows the revenue forecast European companies overly optimistic.

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Despite the “significant” blow from the end of sales to Russia, Rolls-Royce Last year, the US, the largest market, sold more cars than ever before, driven by demand. Meanwhile, in China, the world’s largest electric car market, Tesla owners were unhappy with the company’s price cuts and complained that their cars had lost a lot of value.

The last fell technical stocks There was good news for at least one group: short sellers. Until recently, they have been squeezed by low interest rates and the rapid recovery of stocks from the pandemic.

Billion dollar column showing the biggest gains and losses for US short sellers in 2022

South Korea’s leading vaccine maker stands for “national pride.” China Even as the country faces its worst outbreak of the pandemic, its less effective home-grown Covid strikes may continue. Several Chinese manufacturers are testing messenger RNA shots.

Lloyd’s of London underwriter Beazley has launched the first cyber catastrophe bond, allowing investors to participate in the fast-growing business of protecting organizations from ransomware attacks.

The world of work

As the balance of power at work shifts to employees, how can managers still defends its power? Good management is a balancing act between strong leadership and support, writes business psychotherapist Naomi Shragai.

Competitive European cities are ahead London when it comes to resuming activity in offices and hotels after the pandemic, according to a survey that measures the use of elevators in buildings.

Columnist Emma Jacobs says companies should turn to e-commerce platform Shopify’s solution to clean up pointless and time-consuming appointments.

Some good news

US animal health company Dalan says it has received regulatory approval for the world’s first vaccine to protect honeybees from reproductive diseases.

Honey bee

A new vaccine protects honeybees from an infectious bacterial disease that can destroy colonies © AFP/Getty Images

It is working — Discover the big ideas shaping today’s jobs with Jobs & Careers Editor Isabelle Berwick’s weekly newsletter. Register here

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