Tourist Avalanche in Region Popular with Taiwanese! 'Visitor Numbers Drop 60%, Accommodation Prices Slashed to 10% but Still No Demand' — Travel Industry Reveals the Reasons Behind

China's summer travel market in 2025 has witnessed an extremely rare phenomenon. Although railway summer transport is expected to carry 1.01 billion passengers, with overall ridership up from last year, many traditional scenic spots and guesthouses are facing severe challenges, creating a unique situation where 'crowds do not equal revenue.'

Once a popular tourist destination, Xiamen's Gulangyu Island has suffered a serious tourism downturn this summer. According to the public account 'Ziwen Shuo Keji,' foot traffic at the ferry terminal in June dropped significantly. Chen Jie, a local guesthouse operator, said that in previous years, rooms were fully booked a month before peak season, with prices starting at over 1,000 RMB per night. This year, despite slashing prices to 180 RMB and offering free ferry terminal transfers, many rooms remain vacant. Chen admitted, 'Island-wide visitor numbers are only 40% of 2019 levels.'

Overall tourist numbers in Xiamen have dropped about 30% year-on-year, and sea-view guesthouse prices on Gulangyu have plummeted from over 1,000 RMB to just over 100 RMB. Contributing factors include summer heat with perceived temperatures exceeding 40°C, reducing travel willingness, and the rise of nearby cities like Quanzhou, Fuzhou, and Chaoshan, which offer better value and local culture, diverting visitors. Additionally, the island's business model has long lacked innovation, with goods sold being no different from other ancient towns, significantly reducing repeat visit intentions. As a result, some guesthouse operators have converted rooms into daily rentals or ceased operations.

The number of guesthouses has more than doubled over the past decade, triggering a market elimination race due to oversupply. The famous tourist destination Dali has also sparked discussions, with online rumors spreading about 'Dali's guesthouse downturn' and '50 RMB beds going unoccupied.' Statistics show that Dali Prefecture welcomed over 120 million domestic and international tourists in 2025, a 10.41% year-on-year increase, with tourism spending exceeding 100 billion RMB for the first time. However, by the end of 2025, the number of legally operating guesthouses in the area reached 7,007, a more than 220% increase from 2,179 in 2016. The growth in tourist numbers has failed to keep pace with the expansion of guesthouses, leading to extremely fierce market competition.

According to the Urban Times, Chen Yongsheng, president of the Dali City Travel Agency Industry Association, pointed out, 'It's not that tourists are decreasing; there are simply too many choices.' Current travel consumption patterns are changing. Platform data shows that long-stay 'lǚjū' bookings in cities like Kunming and Dali, lasting over 15 days, have increased by 22%, while orders for large family-friendly guesthouses have grown by over 25%. Family and senior-focused trips account for over 65% of Yunnan's travel bookings, and private small-group tours make up 41%. More travelers are abandoning rushed itinerary-based sightseeing and instead choosing to stay longer to experience local intangible cultural heritage such as tie-dyeing and woodblock printing.

Traditional scenic spots and travel agencies are also facing operational challenges. Statistics show that in the first four months of this year, over 2,000 travel agency branches across the country were either deregistered or suspended, with nearly 10,000 branches listed for transfer. In the first quarter of 2026, 56.8% of 25 listed cultural tourism companies reported negative revenue growth, with industry leader CYTS Tours reporting a net loss of approximately 36.9 million RMB.

High ticket prices and additional fees are a major factor affecting visitor willingness. Currently, many 5A-level scenic spots charge 150–200 RMB during peak season, and with added costs for cable cars and sightseeing buses, individual expenses often reach 500 RMB. In contrast, Hangzhou's West Lake has been free of admission fees since 2002, and its total tourism revenue has grown from 29.4 billion RMB to 345.03 billion RMB in 2024, demonstrating a different operational model.

Moreover, the number of characteristic towns nationwide has exceeded 4,500, with about 2,800 being ancient towns, leading to severe homogenization. Some projects, such as the Aimitu Scenic Town in Yuanping, Shanxi, which cost 98.32 million RMB, are located in remote villages with only around 30 permanent residents, lacking natural and cultural conditions, and face operational challenges.