How China’s Tourism Industry Generates Billions from International Visitors

China’s tourism industry has recently experienced a surge in foreign spending, with billions of dollars being generated from international visitors. This remarkable growth can be attributed to a combination of factors, including the country’s evolving visa policies, significant advancements in technology, and the continued allure of China’s rich cultural and natural offerings.

Strengthening Visa Policies and Technological Innovations

One of the main factors behind the growth of foreign visitor spending is China’s relaxed visa policies. Foreign travelers, particularly those from 25 countries with visa exemption agreements, have benefited from easier access to the country. In addition to these agreements, China offers unilateral visa exemptions to 38 other countries. For those traveling through the country on a layover, the visa-free transit period has been extended to 240 hours, or ten days, for visitors from 54 countries.

These changes have made it simpler and more convenient for international tourists to visit China, with the country now offering a more seamless entry process. In the first quarter of 2025, over 70% of the 9.2 million foreign visitors to China entered the country under these visa-free policies. For instance, during the recent Labor Day holiday, 380,000 foreign visitors entered China under these visa-waiver arrangements, marking a year-on-year increase of 72.7%.

This increase in international tourism spending has been made possible through not just visa policies but also technological advancements. In particular, mobile payment services have played a significant role in making travel easier for foreign visitors. Since mid-2023, international travelers have been able to use Alipay and Weixin Pay e-wallets for purchases throughout China. The adoption of mobile payments has made the country much more accessible for travelers, especially in major cities like Beijing, where tourists can use all-in-one tourist cards to pay for public transportation and major attractions.

For visitors like Phuong Hoa from Hanoi, the experience of traveling through China has been significantly improved with these technological advancements. Hoa shared that she was able to carry only her phone and passport to visit and shop, without needing cash. This ease of payment has made the country even more attractive to international visitors.

Shopping and Tax Refund Policies

Shopping is one of the primary drivers of foreign spending in China, and this is bolstered by the country’s favorable tax refund policy. In an effort to encourage foreign shoppers, China has lowered the minimum purchase requirement for tax refunds, raised the cap for cash refunds, and expanded the list of eligible products. These efforts are designed to make shopping in China even more appealing for international tourists.

The country’s retail sector has already seen the positive effects of these changes. According to Liu Jia from the National Immigration Administration, international visitors have significantly boosted spending in sectors such as hospitality and retail, creating a strong demand for investment. Shopping, in particular, has been one of the key areas where international tourists contribute to China’s growing tourism revenue.

Julia Simpson, the President and CEO of the World Travel & Tourism Council (WTTC), lauded the expanded tax refund and visa waiver policies as “smart and globally-minded strategies.” She noted that these measures focus on enhancing the visitor experience and improving the competitiveness of China as a tourism destination. Simpson emphasized that this is a long-term strategy aimed at elevating China’s position as a world-class travel destination.

Technological and Infrastructure Improvements

Beyond the convenience of payments and visa policies, technological innovations have also played a significant role in attracting foreign tourists. Smart technologies are being used across China to enhance the tourism experience. At various museums and heritage sites, interactive tour guides that use a combination of virtual reality (VR), augmented reality (AR), and 3D technologies have become more widespread. These devices bring history to life by allowing visitors to interact with artifacts, animate ancient paintings, and even converse with historical figures.

For example, at the Chengdu Museum in Sichuan, tourists can wear VR headsets for an immersive and interactive experience that brings the past into the present. This combination of high-tech innovations and China’s cultural heritage provides a unique and enriching experience for travelers, helping to make the country more appealing to international visitors.

In addition to technological innovations, major cities like Shanghai have made significant investments in infrastructure to cater to foreign tourists. The local government in Shanghai, for example, has established tourist information centers, installed multilingual signs, and enabled international credit card payments at major attractions to enhance the visitor experience. The city also introduced all-in-one tourist cards that simplify access to public transport and attractions, making it easier for foreign visitors to navigate the city.

Connie Cheng, the Deputy Director of the Shanghai Culture and Tourism Bureau, reported that the city saw a 61.9% increase in international visitors during the first quarter of 2024, with 1.26 million foreign visitors. During the May Day holidays, service bookings in Shanghai surged by 130%, cementing the city’s status as one of China’s top travel destinations.

Strategic Reopening to Global Tourism

China’s strategy to elevate its global standing as a top tourism destination is not limited to technological innovations and visa policy changes. The country’s reopening to global tourism, following the COVID-19 pandemic, has been instrumental in revitalizing its tourism industry. This strategic reopening has been guided by a desire to position China as a leading destination on the world stage, capable of competing with other countries like France, the United States, and Italy.

According to the WTTC, China’s strength lies in its vast domestic market, which continues to account for the majority of tourism spending. However, the international segment is becoming increasingly important in driving growth. As foreign visitors return to China, the country is focusing on creating an environment that encourages increased spending and longer stays.

Smart investments in infrastructure, streamlined visa processes, and efforts to elevate China’s global brand have created the foundation for a broad and sustainable recovery in the tourism sector. The country’s ability to offer both modern conveniences and cultural richness has made it a desirable destination for tourists worldwide.

Looking Ahead: Positive Growth for 2025 and Beyond

As the global tourism landscape continues to evolve, China’s tourism industry is expected to maintain a positive growth trajectory. According to Julia Simpson of the WTTC, foreign visitor spending is expected to remain strong throughout 2025. The country’s commitment to enhancing the visitor experience through innovative technologies, favorable visa policies, and strategic investments in infrastructure are expected to continue driving growth in the sector.

Simpson further noted that China is on the right track to fully recover its tourism industry and attract even more international visitors in the years to come. The positive trend in foreign visitor spending reflects China’s successful efforts to create a competitive and appealing destination for travelers from around the world.

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