China’s tourism industry has faced significant challenges since the onset of the COVID-19 pandemic. In 2019, China welcomed 97.7 million foreign visitors. But in 2023, this plummeted to 35.5 million, representing less than 40 per cent of pre-pandemic levels.

The sluggish recovery of China’s inbound tourism has prompted widespread concern across government, industry, academia and the media. Leading tourism research journals in China have published dedicated articles discussing the factors influencing China’s inbound tourism recovery.

To address this trend, the Chinese government has implemented several policy measures. In July 2023, China reinstated its 15-day visa-free travel policy for visitors from Singapore and Brunei. In November 2023, this policy was extended to ordinary passport holders from France, Germany, Italy, the Netherlands, Spain and Malaysia. On 7 March 2024, China expanded its 15-day visa-free policy to include six additional European countries — Switzerland, Ireland, Hungary, Austria, Belgium and Luxembourg.

Inbound tourism holds significant importance for China, particularly amid slowing economic growth. Tourism was prioritised during the early stages of China’s reform and opening up era, valued for its potential to generate much-needed foreign exchange. But as China amassed substantial foreign exchange reserves through rapid development and entry into the World Trade Organization, the reliance on inbound tourism for foreign exchange earnings diminished over time.

Amid the challenges confronting China’s economy in 2024, inbound tourism has emerged as an avenue for bolstering economic growth. Drawing international tourists to spend in China translates to a net export of services, injecting added value into the nation’s economic ecosystem. Compared to ordinary goods exports, inbound tourism holds the potential for greater benefits due to its multiplier effect. When international tourists spend money, their consumption creates a chain reaction, stimulating job creation and further expenditure.

Visa-free policies are a practical tool for facilitating tourist flows and trade exchanges between nations. China’s current visa-free policies are anticipated to incentivise more business and leisure travellers to visit China. Still, further efforts are necessary to rejuvenate China’s inbound tourism sector.

Enhancing travel convenience is imperative to address the needs of foreign tourists. While China has made significant strides in developing advanced technologies and transportation infrastructure for domestic travel, foreign visitors often encounter obstacles while navigating in the country.

For instance, booking high-speed train tickets or entry tickets to popular tourist attractions necessitates the use of WeChat’s embedded program. Many establishments exclusively accept WeChat Pay or AliPay, leaving foreign tourists in a predicament if they rely solely on cash or credit cards. Many hotels in China are also not allowed to accommodate foreign tourists.

Eliminating barriers for foreign tourists to travel in China presents enhanced business opportunities for Chinese tourism-related enterprises. While Chinese consumers remain the primary market for most of these businesses, delivering seamless services to foreign clientele could further strengthen their competitive edge. A case in point is the Chinese online travel company Ctrip — which initially emulated Travelocity’s business model but has since expanded its operations globally — establishing itself as a prominent international online travel business.

Technological advancements have the potential to mitigate technical barriers to foreigners’ travel in China without incurring substantial costs. Yet, addressing structural and entrenched ideological barriers may be more challenging. The COVID-19 pandemic may have prompted the Chinese government and tourism operators in China to adopt a more inward-looking approach, prioritising the needs of their citizens.

The shifting geopolitical landscape globally also plays a role in the challenges facing China’s inbound tourism. According to a 2023 survey by the Pew Research Centre, most individuals in Western nations hold unfavourable views towards China. The Chinese government’s tightening grip on societal regulations could potentially cause discomfort for foreign travellers in China. This increased control may lead to unnecessary disruptions in international events like academic conferences and exchanges, due to the formalities and documentation mandated by the government.

The time has come to look beyond national borders when contemplating tourism. The world has reopened, albeit with a transformed landscape compared to before the COVID-19-pandemic. The Chinese government’s implementation of visa-free policies should be applauded — but to meaningfully revitalise its inbound tourism, concerted efforts are required to enhance convenience for foreign visitors before, during and after their travels to China.

To attract more foreign visitors, Chinese businesses must meet the needs of both domestic and international tourists. While transitioning to a cashless society is desirable, it should not exacerbate the digital divide among Chinese citizens or alienate international visitors.

It is imperative to implement more user-friendly alternative payment methods that cater to the preferences of foreign travellers, such as accepting major credit cards or other preferred payment options. The process of passing through transport entry or exit points using passport scanning should be as seamless as tapping a Chinese identification card. Leveraging advancements in AI technology and multiple language mobile apps should also be developed to facilitate international tourists’ travel bookings in China.

China has demonstrated innovation across various technological fronts. This ingenuity should be harnessed to address the needs of international tourists, ultimately reversing the current decline in inbound tourism and bolstering the country’s tourism sector.

Songshan (Sam) Huang is Professor of Tourism and Services Marketing and Head of the Centre for Tourism Research in the School of Business and Law at Edith Cowan University, Australia.