Chinese tourism, both inbound and outbound, has been significantly impacted by the Covid-19 pandemic, with numbers remaining below pre-pandemic levels. Despite recent gains, China still has a long way to go in recovering its travel sector. In 2023, China brought in over 17.25 million foreign tourists from January to July, marking a 130% increase compared to the previous year. This influx is expected to generate over CNY 100 billion in consumer spending. However, these numbers are still far below the 2019 numbers when China had over 49 million overseas visitors and international tourism revenue reached $131.3 billion.
The surge in inbound tourism in China this year has been largely driven by the rollout and expansion of visa-exemption policies. The 144-hour visa-free transit policy now covers 37 ports and applies to citizens from 54 countries, including the U.S., Canada, and the UK. Additionally, region-specific visa-free entry policies have been implemented, such as a 144-hour visa-free entry for foreign tour groups from Hong Kong and Macao into South China’s Guangdong Province, among others. China has also introduced a new 144-hour visa-free entry policy into Hainan for foreign tourist groups registered in Hong Kong and Macao.
In addition to visa exemptions, China has made it easier for foreigners to apply for port visas at various visa offices across the country. Between January and July, China issued around 846,000 port visas to foreign nationals, marking a significant increase from the previous year. The ease of entry has resulted in a surge in searches and inbound travel to China, with companies like Trip.com noting a 400% growth in inbound travel to China in the first quarter of 2024. However, this rapid growth has also posed challenges in the sector, particularly in terms of hotel services, with many foreign visitors expressing concerns about the quality of lodging.
The shift towards a cashless economy in China has presented a new challenge for foreign travelers as digital payments have become the standard for transactions. Traditional cash transactions are increasingly rare, with platforms like Alipay and WeChat Pay dominating in various aspects of daily life, including dining and transportation. Alipay recently announced support for 16 languages on its app, allowing international tourists to navigate China with ease using a familiar language. This digital payment switch has become an essential aspect of travel in China, requiring visitors to adapt to the cashless society.
Despite the various measures taken to boost inbound tourism in China, including visa exemptions and improvements in digital payments, the country did not make it to the top 10 list of countries for international arrivals in 2023, according to Skift Research. Since the Covid-19 pandemic, Chinese tourism has been on a path to recovery, but there is still significant ground to cover to reach pre-pandemic levels. The challenges facing the sector, such as concerns about hotel services and adapting to a cashless economy, will need to be addressed to further stimulate growth in inbound tourism.
