The Transformation of Foreign Tourism in China: What's Next?

BEIJING – As Joao Esteves, a 25-year-old software engineer from Portugal, navigates through the bustling streets of Beijing's historic alleys, he represents a rare sight among a sea of domestic tourists. With a backpack filled with local treats and a curiosity to explore, Esteves reflects the changing landscape of foreign tourism in China.

"I just came from Azerbaijan and saw great flight options to China, which I hear so much about in Europe. I wanted to experience it for myself," Esteves shared during his visit to Nanluoguxiang on November 8. Notably, his travel plans were significantly eased by the recent introduction of visa exemptions for various countries, including Portugal, which was granted entry without a visa last October.

Despite the strong push by Chinese authorities to revive the inbound tourism sector, the comeback of international travelers has been sluggish. It's been over 18 months since China reopened its borders; however, international tourist numbers have yet to rebound to pre-pandemic levels. This trend is particularly pronounced among American tourists, a key market for China's tourism sector.

Recent analyses suggest that a combination of reduced flight availability and rising geopolitical tensions has hindered the recovery of international tourism. The data shows that during the first nine months of 2024, China welcomed approximately 95 million foreign visitors—around 93.4% of the numbers recorded in the same period back in 2019.

In response to these challenges, the Chinese government has bolstered its efforts to attract foreign tourists. Recent initiatives have simplified payment methods for overseas visitors, allowing access to popular mobile platforms like WeChat and Alipay. Moreover, major tourist sites and hotels have been mandated to accept international bank cards, and the ban on turning away foreign guests has been firmly lifted.

Visa exemptions have been rapidly expanded, now covering over 50 nations, with a significant influx of tourists from key markets like South Korea, received during recent visa-free arrangements. By the first half of 2024, approximately 58% of foreign visitors entered China without the need for a visa, highlighting some success in these outreach initiatives.

Industry players are optimistic—Trip.com, for instance, has reported a revenue increase from inbound travel to China, which now surpasses pre-pandemic figures. General Manager Edmund Ong noted, “Bookings from countries with visa-free access are surging,” pointing to a potential recovery trajectory.

Yet, the Chinese government's motivation extends beyond merely boosting numbers. Observers suggest there is a strategic initiative to enhance China's global reputation and diplomatic stance through tourism. Even as domestic tourism remains the economic backbone—with greater spending recorded on local travel—the push for international visitors reflects a desire for cultural exchange and enhanced international relationships.

The shift in tourism demographics is substantial. Prior to the pandemic, American tourists represented a dominant group. Now, operators like WildChina have witnessed a drastic drop in the American market—from 70% of their business share to about 30%. Cancellations of international flights to China have compounded the issues, leading to financial strain for tourism firms reliant on American clients.

Challenges such as travel advisories issued by the U.S. government warning against travel to China due to risks of wrongful detention have further discouraged American tourists. Additionally, international airlines are responding to low demand, reducing flights, which adds yet another hurdle to restoring vibrant travel links.

However, amid these challenges, tourism companies are optimistic about adapting their offerings. There is a noticeable shift in what travelers seek—experiences that resonate more deeply with local culture, history, and immersive activities. Companies are pivoting to offer unique culinary tours, wellness experiences, and exploration of lesser-known sites, catering to a new breed of discerning travelers eager for meaningful experiences.

Tourism experts believe that the landscape of tourism in China is transforming, and while recovery is underway, the market remains fluid. The future might require a new approach that fosters not only tourist numbers but also enriches the cultural connection between foreign visitors and China. What remains to be seen is how effectively China can navigate its international relations to attract and retain a diverse array of global tourists going forward.