Political tensions, economic shifts hinder China’s tourism boom

Proceeding from a recent analysis, Bloomberg unveils that China has taken significant steps to reopen its borders and revive its tourism sector by easing visa requirements for citizens of numerous countries. 

In 2024, China made an unprecedented move by easing visa requirements for numerous countries, aiming to attract 1.9 billion potential visitors. However, only a small portion of this expected influx materialized.

A Bloomberg analysis reveals that the anticipated surge in foreign tourists and the billions of dollars they were expected to spend did not come to fruition. Visitors from the US and much of Western Europe, amid ongoing political and trade tensions with Beijing, largely stayed away. Instead, the majority of tourists came from nearby Asian countries and less developed regions.

According to the latest government data, foreign visitor entries to China reached just under 23 million in the first three quarters of the year. While this figure is about double the low numbers seen in 2023, it remains only 63 per cent of the same period in 2019 and falls far short of the full recovery China had hoped for when it streamlined its visa process.

There are several reasons behind the disappointing results, including a significant reduction in international flights from overseas airlines, shifting economic and political relationships, and a growing negative perception of China in the West. For Beijing, these factors limit its ability to stimulate a struggling economy and attract investment, while also representing a missed opportunity to improve its image internationally before further tensions arise, particularly with the return of President-elect Donald Trump to the White House.

Tim Bacchus, senior aviation analyst at Bloomberg Intelligence, noted, "China’s overall appeal as both a tourist and business destination has been hurt by COVID, Beijing’s policies, and geopolitics. The visa-free policy offers some help, but it’s not enough to counter the trend of people turning away from China."

The steep decline in foreign visitors post-pandemic led China to launch its largest-ever tourism campaign. Over the two years since reopening its borders, Beijing has gradually eased visa restrictions for an increasing number of countries, despite traditionally favoring reciprocal visa-free arrangements.

China has recently expanded visa-free entry to citizens from 38 countries, a move that was previously limited to citizens of Singapore, Japan, and Brunei before the pandemic. Additionally, Beijing has extended its visa-free policy to transit travelers planning stays of 10 days or less, now applicable to 54 countries.

Tim Bacchus commented, "The fact that China is offering visa waivers to citizens of certain countries without reciprocal agreements indicates a level of desperation."

China’s Ministry of Culture and Tourism did not respond to requests for comment. 

With a potential US trade war threatening its exports, attracting foreign spending has become a crucial element of President Xi Jinping’s broader strategy to rejuvenate China’s economy. The country is currently facing its longest period of deflation since 1999, while domestic brands struggle with price wars and Chinese consumers maintain one of the highest household savings rates globally.

By Naila Huseynova