Inbound tourism to China has surged, driven by relaxed visa policies and growing interest from foreign visitors. Zhang Miao, who is preparing to host her husband’s family from France, has noticed a flood of travel advertisements on social media platforms. She is overwhelmed by the wide range of travel services and activities available, with prices ranging from 300 yuan ($41) to several thousand yuan per day, offered by both major platforms like Trip.com and Fliggy, and smaller operators.
The boost in inbound tourism can be attributed to favorable policies like the 240-hour visa-free transit option, which has significantly revitalized the tourism sector. According to the latest data from the National Immigration Administration, the number of foreign visits to China via this visa-free policy reached 20.115 million in 2024, marking a 112.3% year-on-year increase. Among these, the number of individuals eligible for the transit visa-free policy rose by 113.5%.
In line with this growth, financial services provider Morgan Stanley estimates that inbound tourism could generate between $1.7 trillion and $4.5 trillion for China over the next decade, contributing up to 2-4% to the country’s GDP.
Tourism Platforms Respond to Influx
To cater to the increased demand, online travel platforms have launched new initiatives. Trip.com has created a platform for inbound tourism services, including hotel bookings, tourist attraction reservations, mobile payment options, and communication services. Fliggy, in partnership with Alipay, has introduced programs like the “China Travel Flight Plan,” offering discounts and conveniences for foreign visitors.
At the same time, the demand for bilingual tour guides has surged. In Fujian province, for example, the number of applicants for foreign language tour guides increased by over 180% last year, according to local government data. However, the country is facing a shortage of foreign language guides, particularly those skilled in less commonly spoken languages. Sun Guizhen, head of the China Association of Travel Services’ tour guide committee, noted that of the 660,000 licensed tour guides in China, only 8.4% are fluent in foreign languages.
Foreign Tourists Seek Authentic Experiences
Zhang’s husband’s family, which includes more than 10 members, is planning a short trip to China, attracted by the country’s new visa policies. Zhang, after researching on social media, decided to book a travel startup team, despite the high cost — over 1,000 yuan per day for a guide, plus additional expenses for transportation and overtime charges. She chose this team for its comprehensive services, which addressed her concerns about language barriers and payment issues, while offering customized itineraries tailored to her foreign in-laws.
The team leader, Zhang Yang, a graduate in arts management with studies in the UK, said that foreign visitors tend to be drawn to “authentic experiences” and “cultural tours.” As a result, his services often include activities like hutong (alley) tours and intangible cultural heritage experiences. Zhang Yang reported a surge in demand, with his order volume increasing by more than 50% in December and earnings hitting new highs.
Young Entrepreneurs Fuel Growth
The surge in inbound tourism has also attracted young entrepreneurs. Zhang Yang, who previously worked in advertising, recognized the potential of inbound tourism when he came across the trending “Travel in China” topic on Douyin (TikTok). After seeing the growing number of foreign visitors, he left his previous job and joined a travel startup. His first video showcasing Zhangjiajie, a scenic location in Hunan province, quickly gained over a million views on TikTok and sparked hundreds of inquiries.
The Chinese New Year holiday, which ran from January 28 to February 4, saw another peak in foreign visitors traveling to China. Zhou Huijie, a researcher at Trip.com, explained that cities near the 25th parallel north have become popular destinations for Spring Festival travel due to their favorable temperatures and rich cultural heritage.
China’s Tourism Sector Expands
The growing inbound tourism market has led to an increase in the number of related businesses. Data from Qichacha shows that China now has around 78,700 inbound tourism-related companies, with the highest concentration in Beijing, Guangdong, and Hebei provinces. In Beijing alone, there are 5,760 companies catering to inbound tourism.
Local governments are supporting the expansion of this sector. In Changsha, Hunan province, a new overseas service center focused on cultural tourism is planned for 2025. Meanwhile, Beijing Customs has introduced 10 measures to promote inbound tourism and consumption. Zhangjiajie has also launched a “money pouch” service, allowing inbound tourists to exchange foreign cash in small denominations.
Challenges for Newcomers
While opportunities abound, new entrepreneurs in the tourism sector are facing challenges. Li, the founder of a travel startup, noted that foreign tourists tend to have lower travel budgets than expected and prefer semi-free private tours over large group tours. These tourists also prefer independent travel, even if they don’t understand Chinese, making it difficult to control the quality of private tours.
Ge Tian, a former educational entrepreneur, also shared her difficulties transitioning into the inbound tourism market. Despite her background in English translation and studying in the UK, she found that the preferences of foreign tourists vary greatly, making it hard to design personalized itineraries. She is also concerned about the potential risks involved, such as accidents during tours, and the high costs of insurance, legal support, and accounting.
As the inbound tourism market continues to expand, new businesses and entrepreneurs are learning to navigate a competitive and fast-changing landscape. While challenges remain, the potential for growth in China’s tourism sector is undeniable.
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