The Australian Government has restarted the visa process for Chinese group travellers - a move expected to provide a significant boost to the country's tourism industry.
Full recovery expected
Tourism Minister Don Farrell predicts a full recovery of travel from China by Christmas this year, however, concerns still loom over the aviation sector's capacity to meet the anticipated surge in demand.
Before the COVID-19 pandemic, China was Australia's largest source of tourist income, contributing approximately A$12 billion to the economy.
Chinese group tours alone accounted for around A$580 million in 2019.
The resumption of the Approved Destination Status (ADS) visa for Chinese tourists comes after China lifted its ban on group tours to Australia in August.
Recent data from the Australian Bureau of Statistics indicates a 111% month-on-month increase in Chinese tourist arrivals, making China the second largest source of international visitors, after New Zealand.
Can we service the demand?
Despite the promising trends, industry experts express reservations about the ability of Australian aviation to cater to the increased traffic.
Tourism Australia data shows that flights from China are currently at 73% of pre-pandemic levels and are expected to reach 79% by year's end.
Margy Osmond, a leading figure in the tourism sector, suggested to the ABC that airlines might struggle to provide sufficient seats for incoming tourists.
Added to the concern about air capacity is a shift in the market. Many companies that catered to Chinese tourists have pivoted to other sectors due to the pandemic.
Consequently, there could be a shortage of cultural services for the returning visitors.
Geoffrey Thomas, an aviation analyst, also highlighted rising airfares due to fuel price hikes and shortages of aircraft spare parts.
The developments occur amid tensions in bilateral relations between Australia and China, rooted in disputes over trade, COVID-19 origins, human rights and national security.
The government hopes that a scheduled visit by Prime Minister Albanese to Beijing will help to thaw relations.