Inbound tourism calls for better coordination

China has largely cleared the primary hurdles to reviving its inbound tourism. Through a steady expansion of visa-free policies, optimized payment solutions, and streamlined tax refund procedures, China has made it easier than ever for foreign visitors to enter and travel.

However, as arrivals surge, the focus of policymakers and industry business leaders is shifting. The challenge is no longer just getting visitors through the door. It is ensuring they can stay longer, travel to more places and leave with experiences worth sharing.

The shift reflects Beijing's broader push to promote high-quality service sector development and strengthen the service sector as a new driver of economic growth.

Xu Guangjian, a professor at Renmin University of China's School of Public Administration and Policy, said expanding exports of travel services is an integral part of China's drive toward high-standard opening-up.

Developing inbound tourism has emerged as a new growth driver for China to expand its travel service exports and boost inbound consumption. While fueling domestic consumer spending, it will effectively optimize the country's trade structure and help accelerate the narrowing of the services trade deficit.

Data from the Ministry of Commerce underscore that momentum. China's travel service exports surged 32.3 percent year-on-year to 105.35 billion yuan ($15.5 billion) in the first quarter of 2026, the fastest growth among all service export categories.

In 2025, China recorded 82.04 million foreign arrivals, a 26.4 percent year-on-year increase, data from the National Immigration Administration show. Visa-free entries surged nearly 50 percent to 30.08 million, highlighting the impact of relaxed entry policies.

Spending by inbound tourists on dining, accommodation, transport, sightseeing, shopping and entertainment all counts toward China's travel service exports. The category reached 393.98 billion yuan in 2025, a 49.5 percent year-on-year increase and 1.6 times the 2019 level, according to the Ministry of Commerce.

The policy push continues to widen. In March, nine government departments including the Ministry of Commerce, jointly released measures to promote travel service exports and expand inbound travel and consumption. The policy package covers tourism, business travel, education, healthcare, culture and sports, reflecting a growing effort to integrate inbound tourism into China's broader services-trade strategy.

More recently, six ministries unveiled upgraded departure tax refund rules aimed at reducing processing times, expanding refund outlets and digitizing procedures. Beginning Wednesday, tax refund processing for most eligible purchases becomes largely paperless, while the authorities will expand nationwide recognition of "buy now, refund now" programs.

"We used to sell Chinese products to the world. Now it is time to sell China's services and experiences to the world," said Liang Jianzhang, co-founder and executive chairman of the board at Trip.com Group, China's largest online travel agency.

The company recently announced plans to invest 15 billion yuan over five years to market China as a travel destination globally with large-scale overseas marketing campaigns, influencer partnerships and destination promotion initiatives, while targeting to bring as many as 200 million inbound visitors to China over the same period.