China’s tourism sector recovery has slowed since mid-2021 and will remain volatile in 2022 as a result of travel restrictions amid a resurgence of Covid-19 cases, Fitch Ratings said in its latest China Corporates Snapshot report on Friday. According to Fitch Ratings, domestic tourist numbers and revenue in 2021 declined to around 50pc of pre-pandemic levels from over 60pc in 1H21 and remained weak entering into 2022. Fitch believes the government’s Covid-19 policies are largely driving the sector’s recovery path and an escalation in virus cases could weigh on tourism activities, putting a drag on China’s economic recovery. Tourism – which contributed 11pc of China’s total GDP in 2019 – has been fuelling China’s economic growth. The pace of tourism growth has outperformed total GDP since 2014, except in 2020. The report said that still, China’s tourism sector recovery is uneven. Leisure travel has recovered rapidly as travel preferences shifted towards short-distance, high-quality vacations and family entertainment, such as theme parks.