inbound tourism in china

China’s Visa-Waiver Policy Boosts Inbound Tourism: Foreign Visitors Up 152%

Peden Doma Bhutia , Skift

July 9th, 2024 at 5:18 AM EDT

After the pandemic-induced slump, China’s simplification of visa procedures appears to have paid off, with foreign visitors in the first half of the year soaring 152% compared to the year before.

Peden Doma Bhutia

In the first half of the year, 14.64 million foreigners visited China, marking a 152% year-on-year increase, according to the National Immigration Administration.

China, historically a major player in outbound tourism, is now focusing on boosting its inbound arrivals. Recent visa-free policy changes appear to have helped increase the number of foreign visitors to the country.

Over 8.5 million visa-free entries were recorded from the period between January to June this year, making up 58% of inbound travel, reflecting a 190% increase year-on-year.

Despite this growth, current numbers still fall short of the pre-Covid benchmark of 15.53 million foreign visitors in the first half of 2019.

China’s National Immigration Service reported processing 287 million inbound and outbound trips in the first six months of 2024, a 71% year-on-year increase. These included 137 million visits by mainland residents, 121 million by Hong Kong, Macau, and Taiwan residents, and 29.2 million by foreigners.

China’s Visa Waiver Policies

China has simplified visa procedures with more than 40 countries and has mutual visa waiver agreements with more than 20, according to reports . New Zealand, Australia and Poland are the latest countries to join the country’s expanding visa waiver program .

In November,  China introduced a one-year trial for visa-free travel  for citizens of France, Germany, Italy, the Netherlands, Spain, and Malaysia. In March,  this program was expanded to include Ireland, Switzerland, Hungary, Austria, Belgium, and Luxembourg.

China initially announced the visa-free policy for a trial period until November 30 this year, but has now extended it until December 31, 2025.

Travelers with ordinary passports from these countries can enjoy visa-free stays of up to 15 days for business, tourism, family visits, or transit purposes.

The Chinese government has also relaxed entry regulations for tourists arriving via cruise ships. As of May 15, such visitors can stay in China visa-free for up to 15 days.

The expanded visa-free transit policy, effective since last November, now includes citizens from 54 countries. They can stay up to 144 hours without a visa in cities like Beijing and Shanghai, provided they have a valid onward ticket. Cruise ship passengers also benefit from this exemption.

Beijing’s Inbound Growth

Beijing also saw a significant increase in foreign visitors in the first half of 2024, with over one million visiting the capital, a 257% year-on-year increase, according to data from the Beijing General Station of Exit and Entry Frontier Inspection.

Over 159,000 foreign nationals from the 12 visa-exempt countries have entered the city under China’s visa-free policy this year, according to the Beijing exit and entry authority. Foreign nationals coming to Beijing can now also apply for a temporary driving license upon arrival at the airport.

The border inspection office is also helping local travel agencies organize international group tours more efficiently. In the first half of the year, more than 30,000 foreign visitors came to Beijing as part of such tours, a 30-fold increase compared with the same period last year.

During the same period, 33,700 eligible foreign travelers utilized China’s 144-hour visa-free transit policy, a seven-fold increase year-on-year.

Easing of Entry for Hong Kong and Macau Residents

In other related developments, China will also now allow Hong Kong and Macau permanent residents to apply for multiple-entry travel visas to mainland China, each valid for five years.

From July 10, foreign permanent residents of these cities can apply for such visas, though each stay cannot exceed 90 days, as announced by the National Immigration Administration.

The government said the initiative aims, to further facilitate exchanges between mainland Chinese people and those in Hong Kong and Macau, aiding them to “better integrate into the overall national development.”

Non-Chinese residents from these regions traveling for short-term purposes like investment, visiting relatives, tourism, business, and seminars can apply for the permit through authorized services. However, the permit does not allow holders to work, study, or engage in news coverage activities on the mainland. Those intending to do so must apply for other visas or residence permits.

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Nation's inbound tourism sees robust growth in first half of 2024

China experienced a significant surge in inbound trips by foreigners in the first half of the year following the implementation of a series of favorable visa policies, with expectations for continued growth in the second half, the National Immigration Administration said on Friday.

In the first six months of 2024, China received almost 14.64 million inbound trips by foreigners, up 152.7 percent year-on-year. Of these trips, about 8.54 million foreigners visited China visa-free, a year-on-year growth of 190.1 percent.

The 12367 immigration management service platform received a total of 2.72 million global calls, spanning over 100 countries and regions, with an impressive satisfaction rate of 99.1 percent.

Since last year, China has implemented unilateral visa-exemption policies for 15 countries, including France, Germany and Australia. Nationals from these countries holding ordinary passports can enter China visa-free for various purposes such as business, tourism, family visits and transits, with permissible stays of up to 15 days. Furthermore, mutual visa exemption agreements have been established with seven countries, including Singapore and Thailand.

Lin Yongsheng, a spokesman for the NIA, said that these policies have fostered mutual trust between nations, facilitated economic and trade exchanges, and promoted people-to-people interactions.

According to the recently released World Economic Forum's Travel & Tourism Development Index 2024, China ranks eighth globally in promoting tourism development, and stands as the only developing economy in the top 10.

"With the continuous expansion of the 'visa-free circle' and the accelerated implementation of various policies, we anticipate growing enthusiasm among foreigners visiting China in the second half of the year," Lin said.

In February, the NIA expanded the visa-free entry policy for Hai­nan province for passport holders from 59 countries, including Russia, the United Kingdom and France, allowing their residents to enter the province visa-free for a range of purposes with maximum stays of 30 days.

Starting from May 15, China fully implemented the visa-free policy for foreign tourist groups arriving by cruise ships. Additionally, five new measures have been introduced to facilitate the entry of foreigners into China, including streamlining the conditions for applying for port visas, enabling foreigners to transit without inspection at major airports like Beijing Capital International Airport within 24 hours, simplifying visa application materials and streamlining documentation for foreign travelers.

Moreover, the NIA has approved the establishment of 13 new visa and document acceptance points in counties in Zhejiang and Jiangsu provinces and other regions, expanding the coverage of port visa services to 100 ports in 73 cities nationwide.

Yang Jinsong, head of the China Tourism Academy's Institute of International Studies, said that the introduction of favorable inbound policies will attract more tourists to China, laying a robust market foundation for domestic tourism development.

This will not only stimulate the domestic tourism market, but also enhance service quality, more effectively develop niche tourism markets, and improve related facilities and public services, Yang said.

"The increasingly open stance of China is instilling greater confidence in both domestic and international tourists," he added.

Outlook for China tourism in 2022: Trends to watch in uncertain times

Although Chinese consumer confidence is growing, desire for travel has shown a faltering recovery due to sporadic COVID-19 outbreaks. A predictable pattern is emerging where desire for travel recovers roughly two months after a decline and even though international travel is restricted, the desire for travel remains. Furthermore, travelers’ preferences are shifting, with implications for travel companies.

This article updates findings of McKinsey’s Survey of Chinese Tourist Attitudes and compares the results across the five surveys taken in April 2020, May 2020, August 2020, January 2021, and October 2021. It also examines the implications of shifting attitudes toward travel and offers actions that travel companies may consider when planning for the year ahead.

Consumer confidence is growing but desire for travel shows a pattern of spikes and dips

Confidence in China’s recovery is growing—consumer confidence is now at the highest level since the start of the pandemic. In February 2020, consumer confidence was at 43 percent. In October 2021, 67 percent of respondents indicated that they believe the Chinese economy will recover within two to three months (Exhibit 1). 1 McKinsey’s COVID-19 China Consumer Pulse Survey, see “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, December 3, 2021.

As confidence grows, consumer spending is also showing signs of recovery. The latest Survey of Chinese Tourist Attitudes indicates that the majority of respondents, 77 percent of households, expect their income to stay constant in the near future and essential spending and discretionary spending have both increased since March 2021 and are stabilizing.

When it comes to travel sentiment, desire for travel has spiked and dipped as COVID-19 outbreaks continue. Previous McKinsey research indicated that the resurgence of domestic travel would support China’s travel industry recovery. 2 For more, see “ China’s uneven travel recovery: Long road to international travel furthers domestic opportunities ,” McKinsey, August 30, 2021. But, with recent sporadic outbreaks, confidence in domestic travel has been affected. For instance, in October 2021, only 2 percent of people planned to travel in the next two months. But comparing the results of the five tourist attitude surveys, it appears that COVID-19 outbreaks suppress travel desire for up to two months. The good news is that confidence in domestic travel safety quickly rebounds, showing a predictable pattern of recovery (Exhibit 2 and 3). 3 “Survey of Chinese Tourist Attitudes,” McKinsey, April 2020, May 2020, August 2020, January 2021, and October 2021.

Travel patterns echo the fluctuations in travel aspiration. The number of airline passengers increased by 61 percent between August and September 2021, then increased by 8 percent in October, followed by a decrease of 45 percent between October and November. Similarly, the number of rail passengers showed a 47 percent increase, a 9 percent increase, and a 42 percent decrease in the same months. 4 CEIC data: China Passenger Carried, Civil Aviation; and China Passenger Carried, Railway. But despite the fluctuations, the sentiment survey shows that the desire for travel remains. Currently, 42 percent of respondents plan to travel domestically for their next leisure trip, 26 percent of these involve flights of more than three hours of travel time.

International travel remains attractive, but recovery seems to be still a long way off

Chinese travelers express a desire to travel, both domestically and abroad. Even though international travel is restricted and the majority of respondents still perceive international travel as unsafe—and are not planning international travel in the near term—the survey shows continued strong interest in international destinations. Desire for overseas travel has rebounded to pre-pandemic levels with APAC being the top choice (24 percent). Southeast Asia, Europe, Russia, and Japan are named as the most desired overseas destinations.

Various factors affect willingness to travel internationally. As China’s policy announcements continue to delay any international opening, outbound leisure travel will likely be slow to return. To travel internationally, the Chinese consumer wants to see close to zero COVID-19 cases in the destination country (86 percent rated this as a top 3 factor). As the world adjusts to endemic COVID-19 with outbreaks of new variants, this scenario may be unlikely in the near future. Recently it looked as if Hong Kong might be the next destination to open, given its low COVID-19 cases, however, the traffic impact is difficult to predict and the recent outbreaks add an extra layer of complexity to the border reopening. The second most important factor for Chinese travelers is the removal of quarantine in China upon return (84 percent).

Travel patterns to Macau illustrate how COVID19 cases and quarantine requirements have an immediate impact on travel. When the COVID-19 situation stabilized, with no new local breakouts in Macau and no quarantine required for tourists from low-risk areas, the number of tourists recovered to 50 percent of pre-pandemic levels. During a period of COVID-19 outbreaks in Macau in late September and early October 2021, roughly 1,000 tourists traveled to Macau a day. During October, this number reached 20,000 a day and peaked at 30,500 in a single day in late October. 5 Macau Government Tourism Office, Press releases, October 23, 2021, October 29, 2021, November 1, 2021.

The latest findings have implications for travel companies, particularly around product, channel, and loyalty

Even during the current travel restrictions, there are shifts in traveler preferences and behaviors which may endure. Consumers and travelers are adapting to circumstances, and confidence in domestic travel safety tends to rebound quickly after sporadic outbreaks. As international travel is still restricted, domestic travel has revived, albeit in spikes and dips. There are strategies that travel companies could consider in this new landscape, including how they approach product, channel, and loyalty.

Develop travel products to match consumers’ travel aspirations

New domestic travel products have already been developed to substitute for overseas travel. As consumers’ travel aspirations change, companies could consider ways to match product offerings to current desires. The latest wave of the survey shows that travelers are looking forward to visiting new attractions, but due to travel policies, nearly half of respondents said a short trip to a new site is their number one choice. A short-haul trip to see a new attraction is top of mind (49 percent), followed by a long-haul trip to explore a new destination. For revisits, respondents favor longer trips to more interesting sites over shorter trips (Exhibit 4).

Consequently, travelers are planning trips around their hometown cities as a first choice. This preference provides opportunities for tourism companies to attract in-city demand by providing experiences in line with what travelers are looking to do during these trips.

In terms of expectations around what travelers wish to experience on their leisure trips, interest in visiting cultural or historical sites has increased from 39 percent to 44 percent and is now the second most favored activity. This has surpassed beach and resort trips, although these still remain popular. Shopping and “foodie” trips which featured as categories of interest in previous surveys no longer rate in the top five. Outdoor scenic destinations remain the most popular (Exhibit 5).

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Even as people favor trips in their local cities and nearby areas, they are seeking more sophistication and satisfaction beyond buying something new or experiencing new cuisine. Emotional satisfaction is becoming increasingly important. This is in line with the pre-COVID-19 trend of moving away from functional travel, to experiential travel, and ultimately to transformational travel. In other words, travelers wish to learn something new or have a transformative personal experience during their leisure trips.

Accordingly, travel companies could develop products around the major cities as well as culture-trip products inside the cities in response to the desire for short-haul trips exploring new attractions with a preference for culture visits. Companies have begun to act on these trends. For example, Dishui Lake, an hour’s drive from Shanghai witnessed double the number of tourists from 2019 to 2021. 6 “900,000 in 7 days!,” Shanghai Observer , January 28, 2022. In another example, several leading travel-product providers have increased the number of citywalk products for historical sites.

Consider channels: Generation Z and the Silver Generation are different, but not as different as expected

The survey shows that Generation Z and the Silver Generation share many similarities in terms of travel destinations, key travel considerations, how they book their trips, and where they get inspired for their next trip.

Both Generation Z and the Silver Generation have lower income than other groups, but both are important emerging segments for tourism. Generation Z is growing into the future traveler of the tourism market and the Silver Generation is gaining proportion given China’s aging society and this segment’s high travel frequency. The percentage of Chinese citizens above the age of 55 doubled between 1990 and 2020, growing from 12 to 24 percent. 7 United Nations World Population Prospects 2019.

The Silver Generation is now the most active travel segment. The majority of this generation (87 percent) travelled in the past 1-3 months, compared to 60 percent of Generation Z. The average across all age groups for travel in this period is 65 percent. At the time of the survey, a larger portion of Generation Z respondents had traveled in the past two weeks (94 percent). This is the highest for all age groups—with the Silver Generation at 87 percent and the average across age groups at 92 percent.

Digital media as source of travel inspiration is taking the lead, across both generations, but the nuances lie within the digital channels. Both Generation Z and the Silver Generation find inspiration in digital adverts and promotions and are open to digital channels including mobile adds and online travel forums.

The Silver Generation is more inspired by mobile adverts of local agency (11 percent higher than the group average) and less inspired by online videos (9 percent less than the group average). This generation is also inspired by local online travel forums such as Mafengwo, 16 percent higher than the group average.

By comparison, Generation Z is more influenced by online video adverts (13 percent higher than the group average). This generation is less influenced by mobile adverts of local agency (15 percent less than the group average). Across sources of inspiration from related articles and commentaries, Generation Z is more influenced by key opinion leaders or key opinion consumers (6 percent higher than the group average).

Both generations use similar booking channels, with official websites of local online travel companies as their top choice. For instance, 30 percent of Generation Z respondents prefer to book a trip via an official website of a local online travel company, followed by 28 percent via mobile applications of local online travel agencies, and 20 percent via official websites of hotel chains. For the Silver Generation, 40 percent prefer to book a trip via an official website of a local online travel company, followed by 23 percent using stores of traditional travel agencies, and 21 percent booking through customer hotlines of traditional travel agencies. The use of online travel agencies is relatively low (17 percent for official websites of hotel chains and 14 percent for hotlines of hotel chains).

Given that Generation Z and the Silver Generation are emerging as major market segments, with similar demand for product offerings, travel companies can respond to the nuances of how these groups seek inspiration and make bookings. For example, in terms of communication, the Silver Generation seeks inspiration from travel forums, while Generation Z is more likely to respond to short videos. Although the Silver Generation is open to digital channels, they still value human interaction when booking travel.

Cultivate loyalty, beyond loyalty programs

Travel companies may have an opportunity to cultivate loyalty. Brands and loyalty programs may no longer be a defining factor. Instead, satisfaction and uniqueness are becoming increasingly important in making travel choices.

The survey shows that non-branded hotels are generally more popular than branded hotels (56 percent non-branded; 44 percent branded hotels). While branded hotels are still attractive, 40 percent of respondents tend to choose hotels or brands that they have stayed in recently and where they have had a good experience. This highly loyal consumer behavior is more apparent in high-income, middle-aged and senior citizens, and people in tier-1 cities. In the past, loyalty programs have been effective in retaining high-income groups or the Silver Generation, but younger travelers tend to opt for experience rather than brands or loyalty points. Generation Z has higher appetite for local boutique hotels (5 percent more than the group average) but less preference to return to a hotel they have previously visited.

Additionally, there is increasing appetite for local boutique hotels as well as for products that leverage collaboration with other companies to better reach targeted customer groups or offer unique experiences. Among the 56 percent of travellers who prefer to stay in non-branded hotels, 22 percent of these tend to stay in boutique hotels characterized by local or unique features. Across non-branded hotels, the top choice from respondents across all age groups is for boutique hotels and beach resort villas that offer an experience of an exotic culture, or B&B’s and homestays that offer a local experience (Exhibit 6).

When comparing demand in terms of the percentage of respondents interested in branded hotels, there is a disproportional demand for premium hotels and budget hotels. Mid-tier hotels may find it more challenging to capture demand.

Loyalty is now formed around good experiences, unique offerings, or services that make the trip memorable or more convenient, instead of being driven purely by points or discounts. For instance, health and safety concerns such as sanitation and privacy have increased in importance, ranging from 36 percent to 48 percent. But price and promotions still play an important role, particularly with Silver Generation customers. Convenience is a factor: easy-to-go offerings have increased in importance from 25 percent to 39 percent, and door-to-door trip offerings have increased from 26 percent to 35 percent. The only factor that decreased in importance is comfort, from 47 percent to 36 percent.

Accordingly, travel companies can focus on uniqueness or experience to drive loyalty, in tandem with loyalty programs or discounts. They could also consider developing seasonal offerings to satisfy customers’ desire for new attractions and experiences. Branded hotel chains could also expand their offerings by including local experiences.

Actions travel companies can consider

Desire for travel is evident and pent-up demand for outbound travel is accumulating. At the same time, interest in domestic travel is recovering, even though it is temporarily dampened by sporadic COVID-19 outbreaks. In this landscape, travel companies can prepare for surges in demand while taking into account emerging travel preferences. Travel companies may want to tailor their tactics to better serve travelers. In particular, travel companies can be more flexible around customers changing their plans, given rapid changes in policy. They can also focus on local populations within driving distance, differentiate offerings to match shifts in demand, and cultivate loyalty through extra attention to satisfaction and uniqueness. Travel companies can also make use of digital channels to reach customers, and tailor content and format per market segment.

Trends indicate that opportunities are emerging in the domestic market. On the other hand, there are still uncertainties in 2022. Travel companies have the chance to enter the new year with eyes wide open to the changes and manage them closely, while diversifying travel offerings and marketing models to cater to the domestic market—and potentially forging the new domestic operating model into long-term sustainable and inclusive growth.

Jackey Yu and Guang Chen are partners in McKinsey’s Hong Kong Office; Steve Saxon is a partner in McKinsey’s Shenzhen office; and Cherie Zhang is a knowledge expert in the Shanghai office.

The authors wish to thank Glenn Leibowitz, Tairan Xu, Carrie Ma, Zi Chen, and Alex Yang for their contributions to this article.

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Related articles.

China’s uneven travel recovery: Long road to international travel furthers domestic opportunities

Inbound tourism is strategically important for China's economic growth

Matteo Giovannini

A foreign tourist takes part in a Chinese traditional dragon dance in Nanjing, east China's Jiangsu Province, February 13, 2024. /CFP

Editor's note: Matteo Giovannini, a special commentator on current affairs for CGTN, is a finance professional at the Industrial and Commercial Bank of China and a member of the Global Young Leaders Dialogue. The article reflects the author's views, and not necessarily those of CGTN.

China, a nation that is widely known for being the world's oldest continuous civilization, as well as for a rich diversity of landscapes, with the world's tallest mountain and the world's highest and largest plateau, has recently rolled out measures targeted to make the experience of visiting the country more attractive to global travelers.

Starting from March 14, China implemented a visa-free policy for citizens of Switzerland, Ireland, Hungary, Austria, Belgium, and Luxembourg, who are now able to visit the world's second-largest economy for up to 15 days for business, tourism, family visits and transit purposes.

Such decisions once again confirm that China's opening-up policy is not a captivating slogan, but a concrete effort aimed on the one hand at progressively opening the door of its domestic market to the rest of the world and on the other hand, at simplifying the entire journey to China by shortening the preparation time. The announced visa-free policies can also be seen as instrumental in boosting the level of foreign investment, and in promoting economic integration with major European countries. 

In Beijing's quest for economic rejuvenation, a strategic shift has emerged, placing emphasis on two key engines: expanding domestic demand and fostering foreign investment and inbound tourism. This shift signifies a departure from traditional growth models reliant on exports and heavy industry, towards a more balanced and sustainable approach to economic development.

Expanding domestic demand is a prudent move for China, especially amidst a global economic landscape marked by uncertainty and volatility. By encouraging consumption within its own borders, China aims to insulate itself from external shocks while fostering a more resilient and self-sustaining economy. This strategy not only bolsters short-term growth but also lays the groundwork for long-term stability by reducing reliance on export-driven growth.

Furthermore, by prioritizing foreign investment and inbound tourism, China seeks to leverage its unique strengths and attract capital and visitors from around the world. Foreign investment injects much-needed capital into the economy, stimulates innovation, and creates job opportunities for local residents. Meanwhile, inbound tourism not only boosts revenue in the hospitality and service sectors but also promotes cultural exchanges and soft power projection on the global stage.

While the Chinese government is devoted to welcoming overseas tourists to travel to the country, ending major barriers through streamlining visa and customs policies, additional problems remain unsolved.

One of the critical challenges facing foreign travelers in China remains the complexity of domestic payment systems, which drastically limit their consumption potential. This is because people in European and American countries usually use bank cards to pay while China's digital payment systems such as AliPay and WeChat Pay, and mobility apps for taking a taxi such as Didi are primarily designed for Chinese users.

In July of last year, Alipay and WeChat launched the service of linking foreign bank cards of Visa and Mastercard to their apps, opening a "convenient door" for travelers to pay in China. This has made it a whole lot easier for international travelers to visit China, offering the opportunity to make transactions in a near-cashless society where more than 80 percent of the transactions for daily consumption take place on mobile platforms.

However, problems persist as foreign visitors, after entering China, face difficulties such as complicated procedures for purchasing tickets for scenic spots.

Foreign tourists walk along a corridor at an agricultural attraction in Jinhua, east China's Zhejiang Province, May 1, 2023. /CFP

To encourage app developers to expand their service scope and simplify procedures for scenic spots, China should consider implementing several macro-policy measures.

Firstly, the government might contemplate offering incentives such as tax breaks, subsidies, or grants to app developers who expand their services to cover more scenic spots and simplify procedures. In this sense, financial support could help offset the costs associated with development and implementation.

Besides, a simplification in regulations and procedures for app developers could lower barriers to entry and encourage innovation in the tourism sector. Clear guidelines and standardized processes could be an effective solution to expedite the development and deployment of apps for scenic spots.

Furthermore, collaborations between the government and private sector stakeholders could facilitate the creation of comprehensive tourism apps. Through public-private partnerships, the government could provide resources and infrastructure support while leveraging the expertise and creativity of app developers.

Moreover, a promotion of partnerships with international app developers and tourism organizations could bring fresh perspectives and innovative solutions to the Chinese tourism market. Cross-border collaborations would help address the needs of overseas tourists and enhance the quality of services provided by app developers.

As expanding domestic demand and encouraging foreign investment and inbound tourism have become China's engines to stimulate short-term growth, the implementation of targeted measures could foster a more vibrant and competitive tourism industry that better serves the needs of overseas tourists while driving economic growth and development.

(If you want to contribute and have specific expertise, please contact us at [email protected]. Follow @thouse_opinions  on Twitter to discover the latest commentaries in the CGTN Opinion Section.)

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Tourists from New Zealand practice tai chi in Shiyan, Hubei Province. Photo: Xi'an Zhongheng International Travel Agency

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China's inbound tourism market posts positive momentum in 2024

SANYA -- China's inbound tourism market continues to recover this year and is expected to reach as much as 80 percent of the pre-pandemic level in 2019 in terms of the number of foreign tourists, according to the latest industrial report released Tuesday.

The China Tourism Academy released the China inbound tourism development report (2023-2024) in Sanya City, South China's Hainan province.

The number of overseas tourists who search for flights to and accommodation in China has increased significantly, suggesting the growing potential demand for travelling in China, according to the report.

With continuous resumption of international flights, further improvement of entry convenience and inbound tourism supply chain, and active promotion of tourist destinations across China, the prospect of the inbound tourism market is relatively optimistic, said the report.

Chinese culture and high-quality life experiences are the core attractions of the destinations, as more than 60 percent of the surveyed listed experiencing Chinese culture as their top reason for traveling to the country, said the report.

Fascinating experiences such as delicacies, healthcare services, and shopping are also part of their to-do lists during travels, it added.

Statistics released by the National Immigration Administration show that the number of foreigners coming to China recorded a threefold increase year on year in the first quarter of this year. Notably, some 1.98 million foreigners enjoyed visa-free entry into China during the first three months of this year, soaring 266 percent year on year.

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China Unveils New Measures to Boost Tourism and Attract International Travelers

China has revealed a strategy to revitalize its tourism sector and attract a greater number of foreign tourists. This initiative includes the reintroduction of visa-free policies and measures to simplify travel and payment procedures.

China, a country renowned for its diverse landscapes, rich history, and vibrant culture, has been working to overcome a significant challenge in recent years—attracting foreign tourists. The COVID-19 pandemic complicated this endeavor, due to limits on international travel. Now, with the reopening of its borders, China’s government is rolling out measures to make visiting the country more appealing and accessible to global travelers.

On September 29, 2023, the State Council released a Notice on Several Measures to Promote High-Quality Development of the Tourism Industry (hereinafter referred to as the measures) aimed at addressing some of the key barriers that have deterred foreign tourists. These measures target safety concerns, visa complexities, and the country’s unique payment systems that have oft posed challenges for international visitors.

In this article, we present the initiatives by the Chinese government to boost inbound tourism and their potential impact on the country’s economic growth.

The current state of inbound tourism

China’s tourism industry , once a vibrant and essential part of its economy, has been grappling with a myriad obstacles to growth in recent years. These stem from nearly three years of pandemic-induced isolation and sealed borders.

While China’s borders were cautiously reopened earlier this year , foreign travelers have been slow to return to the country. Several factors have contributed to this sluggish recovery, including a cumbersome visa process, limited flight options, and complex digital payment systems primarily designed for Chinese users. In 2019, South Korea, Russia, Japan, the United States, and Australia were among the largest sources of foreign tourists for China, according to data from the Chinese Ministry of Commerce. However, post-pandemic, attracting tourists from these nations has proven challenging.

What’s in China’s plan to attract foreign tourists

1.     optimization of visa and customs policies.

Navigating visa and customs procedures can be a hurdle for foreign travelers. China is fully aware of this challenge and is committed to addressing it. The measures highlight the importance of enhancing visa processing efficiency through different actions, including:

• Digitalization of visa issuance: China is advancing its digital capabilities in visa issuance. This not only improves the convenience for travelers but also aligns with global trends toward digital travel documents.
• Reinstating and expanding visa exemptions: As COVID-19-related travel restrictions are lifted, China is gradually reinstating various visa exemptions. Additionally, the government is actively exploring opportunities to expand the list of countries eligible for visa exemptions .
• Leveraging the key role of port visas and transit visa exemptions: Port visas, transit visa exemptions, and regional entry visa exemptions are key components of the strategy.

The combination of these proposed measures can play a crucial role in facilitating smoother customs clearance, making China a more attractive destination for international travelers.

2.     Resumption of international flights

The limited availability of international flights during the pandemic significantly impacted foreign tourist arrivals. Recognizing this, China is actively working on resuming and increasing international flight connections. The focus is on expanding routes with countries that serve as major sources of inbound tourists and neighboring nations. This initiative is not only essential for attracting tourists but also for boosting business travel and trade connections.

3.     Payment facilitation

One of the critical challenges facing foreign tourists in China has been the complexity of payment systems, particularly digital ones, which are primarily designed for Chinese users. Recognizing the importance of a seamless payment experience for travelers, the measures mention upcoming plans to simplify and enhance payment facilitation.

For instance, WeChat has recently expanded its features to allow foreigners to link their international cards to the app. This development has significantly improved the convenience of digital payments for international visitors, aligning with the government’s objectives. Furthermore, the digital yuan app has introduced a new update that is optimized for foreign bank cards, marking another step towards simplifying payment processes for tourists. These advancements are part of a broader set of initiatives aimed at enhancing the payment experience for foreign travelers.

These initiatives are pivotal in demonstrating China’s commitment to catering to the needs of international tourists and making their visits (and spending) more seamless and enjoyable.

4.     Enhancement of inbound tourism services

To ensure a memorable experience for foreign tourists, China is placing a strong emphasis on improving those services that specifically cater to international visitors. The measures list several examples of services which will be further streamlined, including (but not limited to) areas such as:

• Ticket booking;
• Transportation; and
• Accomodation.

Moreover, there’s a commitment to enhancing foreign language support, with training programs for tour guides and service personnel. Multilingual signage and guidance facilities at tourist sites, airports, hotels, and shopping areas are also on the agenda.

5.     Optimization of departure tax refund services

The measures propose the optimization departure tax refund services to make the departure experience smoother and more rewarding for foreign tourists. As such, the government aims to encourage more businesses to become tax refund shops, thereby broadening the range of goods eligible for tax refunds.

6.     Leveraging tourism platforms

The measures highlight China’s active promotion of tourism trade platforms to facilitate international cooperation and business growth.

Domestic culture and tourism enterprises and organizations are encouraged to participate in various international cultural and tourism exhibitions. In addition, the government is keen on attracting foreign culture and tourism enterprises to invest in China. The construction of high-quality cultural trade bases, as mentioned in the measures, will serve as a service guarantee for such investments.

Inbound tourism revival plan is welcome, but challenges may temper immediate gains

China’s tourism revival plan, with a focus on attracting inbound travelers, could significantly boost the economy and consumption. Yet, it will not be without challenges. Streamlining visa and customs processes through digital visas aligns with global trends but implementation needs to minimize pain points. International flight resumption promises economic growth and cultural exchange, but immediate gains will be shaped by global externalities. Simplifying digital payments will need to be accompanied by strong cybersecurity.

Balancing opportunities and challenges in the evolving global context will be crucial for China’s tourism success. A rebound of the tourism sector is vital for post-COVID recovery, benefiting various allied sectors and fostering global engagement. China’s commitment to reinvigorate tourism is another way of reinforcing its move towards economic openness.

China Briefing is written and produced by  Dezan Shira & Associates . The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at  [email protected] .

Dezan Shira & Associates has offices in  Vietnam ,  Indonesia ,  Singapore ,  United States ,  Germany ,  Italy ,  India , and  Russia , in addition to our trade research facilities along the  Belt & Road Initiative .   We also have partner firms assisting foreign investors in  The Philippines ,  Malaysia ,  Thailand ,  Bangladesh .

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Is China Attracting Foreign Visitors?

Power is traditionally discussed in terms of affecting outcomes within the international system through either threats or coercion. How countries leverage their international image to persuade others to support their interests is equally important. As such, it is crucial to assess the global appeal of China and how the Chinese government seeks to cultivate its soft power. This feature explores the attractiveness of China by examining trends in inbound tourism, the impact of Chinese tourists on the economies and perceptions of the countries they visit, and how the Chinese government utilizes tourism as a political tool to further Chinese interests.

China as a Global Tourist Destination

Tourism is becoming increasingly important to China as both a source of revenue and a means of enhancing its international image. In 2018, nearly 159 million “visitors” traveled to China. This figure includes all non-residents traveling to China for any length of time or purpose. That same year, China received 62.9 million “tourists” – travelers staying in the country for at least one night.

These numbers, however, are somewhat misleading. Visitors coming from Hong Kong, Macau, and Taiwan account for 69.8 percent of China’s total. When adjusted to exclude these locations, the number of visitors is closer to 48 million. In 2018, Myanmar, Vietnam, South Korea, Japan, and the United States led the way as top sources of visitors into China. That year, China was the fourth most popular tourist destination behind France, Spain, and the United States.

The economic benefits of tourism are enormous for China. In 2018, China  ranked  second in the world for the contribution of travel and tourism to GDP ($1.5 trillion) and first in the world among top earners for the contribution to employment (79.9 million jobs). That same year, China invested $155 billion into its tourism infrastructure, a figure second only to that of the United States ($176.3 billion). Overall, tourism and travel accounted for 11 percent of China’s total GDP in 2018. The World Travel and Tourism Council projects that by 2028, China’s economy will  benefit  from travel and tourism more than any other country, at $2.7 trillion in contributions to GDP.

Unexpected events and circumstances can significantly impact tourism rates. The outbreak of a new coronavirus originating in the Chinese city of Wuhan, for example, is likely to significantly impact tourism around the world and especially in China. As the number of infected people skyrocketed in the first several weeks of 2020, Beijing banned outgoing tourist groups. Several countries and airlines also began restricting travel to and from China.

Diplomatic and political tensions can also impact tourism to China. Strained ties between Japan and China contributed in part to a steady decline in Japanese visitors from 3.7 million in 2010 to 2.5 million in 2015. The steepest one-year fall in recent years saw Japanese tourism to China drop 7.8 percent between 2012 to 2013 in the wake of Sino-Japanese territorial disputes in the East China Sea. Beginning in 2016, however, tourism from Japan increased for three consecutive years, coinciding with thawing ties between the two East Asian countries.

Conversely, China’s inbound tourism from some countries has overcome political difficulties. Between 2013 and 2018, visitors from the Philippines rose  by 21 percent and travel from Vietnam swelled by more than five-fold, despite contentious territorial disputes between the two Southeast Asian nations and China.

The Chinese government has made a concerted effort to attract foreigners to China. Since securing the bid to host the 2008 Olympics in Beijing, China has continued to emphasize tourism as a national priority. Beijing also won the bid to host the 2022 Winter Olympics and established a  committee  to ensure that permanent tourist destinations and public facilities are created. Securing the 2022 Winter Olympics bid was aligned with the State Council’s five-year plan for tourism development, released in 2016, which listed winter sports tourism as an important part of the country’s ambition to raise tourism revenues to RMB 7 trillion (about $1 trillion) by 2020.

As the number of foreign visitors to China continues to increase, China’s investment in domestic tourism is likely to expand. By 2028, it is estimated that China will invest nearly $310 billion in tourism and travel, more than doubling what it spent in 2017 and surpassing projected US spending of $303 billion. It is further estimated that the contribution of inbound travel and tourism to China’s GDP will  increase  by 6.5 percent annually from 2018 to 2028.

China as a Source of Tourists

The uptick in foreign visitors traveling to China is paralleled by an increased rate of Chinese tourists traveling abroad. China’s expanding middle class, with increasing disposable income, has facilitated a dramatic increase in outbound tourism. 1 Chinese citizens traveled outside of the mainland nearly 149 million times in 2018, a 4.7 percent increase over the previous year. Of those tourists, a large majority traveled to destinations in Asia. Aside from Hong Kong, Macau, and Taiwan – which are among the top destinations for Chinese tourists – large numbers of Chinese also visited Japan, Thailand, and South Korea.

The US is also a top destination for Chinese tourists. According to the US International Trade Administration , about three million Chinese visitors traveled to the US in 2018. This made China the fifth-largest source of tourists to the US that year – behind Canada (21.5 million), Mexico (18.4 million), the UK (4.7 million), and Japan (3.5 million). However, tourism from China declined nearly 6 percent from 2017 to 2018, and is projected to have declined another 5 percent in 2019. Prolonged economic and political tensions between Washington and Beijing is likely to blame, but China’s economic slowdown may also be weighing down Chinese tourists.

In 2018, Chinese visitors spent an average of more than $11,500 per person in the US, compared with a combined average of just under $2,900 per person from all other countries. 2 In total, Chinese tourists spent $34.6 billion in the US in 2018, contributing 13.5 percent of all tourism spending in the country that year.

Much of this money is spent on high-end luxury goods, as Chinese tourists on average spend 10 percent more of their travel budget on  shopping  than non-Chinese tourists. Chinese tourists in France flock to retailers of brands like Louis Vuitton, Chanel, and Dior. The world-renowned Galleries Lafayette in Paris reported that in 2009, the average Chinese tourist spent around 1,000 euros. Fashion items constituted 87 percent of this spending. 3

While China has emerged as a major player in the international luxury goods market as outbound tourism increased, many analysts believe that this trend may be changing. McKinsey found in a  2018 survey  that, while 19 percent of Chinese travelers prefer to shop while on holiday, an even higher percentage of Chinese travelers, 20 percent, place sightseeing as their top priority.

Tourists leave an indelible impact on the places they travel, which can have long-lasting consequences for how China is perceived worldwide. In recent years, there have been some high-profile cases of local residents disapproving of Chinese tourists’ behavior while visiting their countries. In 2013, a young Chinese tourist stirred an international controversy by carving  graffiti  onto an ancient Egyptian relic at Luxor. Incidents of Chinese parents allowing their children to defecate in public have sparked outrage in both Hong Kong and  Taiwan .

Perceptions play an indelible role in international politics. Learn more about how China is viewed regionally and globally, as well as how Chinese people view their own country.

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While there are bound to be isolated examples of tourists from any country behaving inappropriately on foreign soil, in 2006, the Chinese government launched a nationwide advertising campaign to educate Chinese tourists on suitable behavior when abroad. These guidelines included a “civilized tourist behavior guidebook” that outlined clear guidelines for acceptable behavior, such as dressing appropriately and eating quietly. In addition, the China National Tourist Administration issued guidelines  in 2013 reminding Chinese tourists to “be civilized.” 

In 2016, the Chinese government publicly banned twenty tourists from future travel due to “uncivilized” behavior. By September 2018, this  blacklist  had grown to 35 people. The government’s approach reveals a clear desire for Chinese nationals to be perceived positively across the globe, thereby improving China’s international image.

It is unclear if the government’s initiative to cultivate this positive image is paying off. Over 18 million Chinese tourists visited Hong Kong in 2017, amounting to nearly 32 percent of all tourists into the  autonomous territory . However, a University of Hong Kong study found that negative feelings toward mainland Chinese were increasing exponentially  from year to year. In response to the study, over 50 percent of the respondents  cited  “ill-behaved tourists” as the reason for their negative opinion, when the Hong Kong newspaper The South China Morning Post conducted an online survey asking “What makes some Hongkongers dislike mainland China and its people?”

China’s Use of Tourism to Influence International Politics

China’s increasing stake in international tourism and the financial impact of Chinese tourists have afforded the Chinese government an opportunity to indirectly affect international politics. As noted above, the Chinese government has actively sought to influence the behavior of tourists in an effort to improve perceptions of China. The government has also used tourism as a mechanism for exerting political pressure by restricting or threatening to restrict Chinese tourists’ access to certain countries.

The Ministry of Culture and Tourism absorbed the China National Tourist Administration in March 2018 and is now charged with controlling China’s outbound tourism through the Approved Destination Status (ADS) policy. The policy restricts overseas travel by Chinese nationals to an approved list of countries and forces Chinese citizens to travel in tightly  controlled groups .

Typically, ADS agreements enable Chinese travel agencies to reduce the cost of obtaining a visa by submitting visa applications for an entire group at once and providing packaged tours. While these agreements have facilitated greater overseas travel for Chinese tourists, the ADS scheme also affords the Chinese government with the means to  direct such travel . In 1995, the first year of the policy, only six countries were granted ADS agreements. By July 2019, 131 countries had ADS agreements with China.

The Chinese government has a demonstrated history of using its tightly controlled tourism scheme to strategically promote its political agenda. In an effort to boost cross-strait relations and bolster Taiwan’s sagging economy, the Chinese government actively encouraged Chinese tourists to visit Taiwan when the Kuomintang returned to power in 2008. However, this trend reversed when Democratic Progress Party leader Tsai Ing-wen became president in 2016. During the first five months of her administration, tourism from mainland China to Taiwan plummeted 48 percent .

All countries that maintain formal diplomatic ties with Taiwan have been banned from  ADS agreements.  Between 2016 and 2019, Taiwan lost diplomatic ties with seven countries. Panama broke from Taiwan in 2017 in favor of establishing ties with mainland China and was granted an ADS agreement shortly thereafter. In 2018 and 2019, the Dominican Republic and the Solomon Islands switched diplomatic recognition from Taiwan to mainland China and were quickly recognized by Beijing as tourist destinations for Chinese citizens.

China attracts more international students than any other Asian power. Over 440,000 foreigners studied in China in 2016, a 35 percent increase from 2012. Learn more about why foreign students are studying in China, and how this impacts China’s image.

Additionally, it was reported that Fiji, which generates more than a third of its gross domestic product through its  tourism industry , was only granted an ADS agreement by China in return for denying diplomatic recognition to Taiwan. China used similar tactics in its efforts to lure Grenada and Dominica into breaking ties with Taiwan.

China has also demonstrated a willingness to suspend or threaten to suspend leisure travel to approved ADS locations as a means of applying political pressure. The Philippines was granted ADS status in 1992. In 2017, Chinese tourism to the Philippines surged to over 968,000 tourists – up 43 percent from 2016. However, increasing bilateral tensions between China and the Philippines over territorial disputes such as Scarborough Shoal in the South China Sea has led to a disruption of outbound Chinese tourism.

When tensions between China and the Philippines in the South China Sea flared in 2012, China suspended tour groups from visiting the Philippines. The Chinese government took additional economic measures during the crisis, reportedly quarantining hundreds of containers of Philippine bananas and other tropical fruits, claiming the shipments were contaminated.

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• Inbound eco-tourism brings 2.6 mln USD to Belarus economy in 2023

MINSK, Sept. 4 (Xinhua) -- Inbound eco-tourism accounted for a significant part of Belarus' tourism services, contributing 2.6 million U.S. dollars to the country's economy last year, Director of Tourism Department of the Ministry of Sports and Tourism of Belarus Irina Voronovich said at a press conference on eco-tourism in Belarus on Wednesday.

According to her, in 2023, inbound eco-tourism was worth 2.6 million dollars to the country's economy, up 31.4 percent over 2022. In January-May 2024, a growth of 49.2 percent was made in comparison with the same period a year ago. The figures indicate an increasing demand for eco-tourism.

September has been declared the month of eco-tourism in the country, Voronovich said, and much has been done to give a boost to eco-tourism, which provides foreign visitors with the best picture of Belarus boasting an abundance of unique natural wonders.

"This type of tourism covers different social and age groups. We follow the global trend set by the World Tourism Organization and pay much attention to the principle of inclusion. Our eco-trails are equipped for people with disabilities," she added. Enditem

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China handles 110 mln entry-exit trips during summer vacation

Source: Xinhua

Editor: huaxia

2024-09-03 12:26:00

BEIJING, Sept. 3 (Xinhua) -- Chinese border ports saw a whopping 110 million inbound and outbound trips during July and August, averaging nearly 1.78 million per day, the country's National Immigration Administration (NIA) said Tuesday.

The highest daily number of inbound and outbound travelers reached nearly 2.24 million on Aug. 24, accounting for 97.2 percent of the historical peak.

A total of 10.89 million trips were made by foreigners, marking a 52.8 percent increase from last year. In addition, visa-free inbound trips by foreign visitors (excluding residents of border regions) surged to about 1.96 million, up 117 percent compared to the same period last year.

The surge in travelers is due to China's mutual visa exemption agreements with other countries, the 144-hour visa-free transit policy and other favorable policies, which has attracted visitors for summer vacations.

The NIA noted that border ports nationwide took proactive measures to forecast entry-exit traffic, operate sufficient checkpoints for travelers and effectively mitigate the impact of extreme weather on the customs clearance process. ■