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China has cancelled all domestic and outbound group tours until further notice, spelling another hit to tourist spending in Australia.

In what is traditionally China's busiest travel season, the China Travel Service Association (CTSA) has announced the temporary suspension of all group tours and package trips.

It described these as “hotel and air ticket services,” both within China and abroad.

CTSA advised trips already underway are allowed to continue to completion, as are any scheduled before January 27. 

CTSA’s statement followed an order from the Ministry of Culture and Tourism on January 24 to halt sales of group tours and travel packages.

The move is aimed at containing cases of novel coronavirus by halting non-essential travel activities, meaning retailers could lose out on what is traditionally a lucrative trading period.

Tourism Research Australia reported that more than 1.3 million Chinese — excluding children — visited Australia in 2018 and spent $11.5 billion.

Chinese tourists account for more than 15% of the total inbound market.

The move adds another blow to Australian retail and tourism spending, as the national bushfire disaster takes its toll.

Earlier this month, the Federal Government announced a $76 million recovery package focusing on rebuilding Australia’s tourism industry in light of the bushfire crisis.

Morrison said Australian tourism was facing “its biggest challenge in living memory” after the fires made international headlines.

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