(Yicai) July 7 -- Shanghai welcomed 2.6 million inbound foreign travelers in the first half of this year, a 45 percent increase year-on-year, thanks to China’s relaxed visa policies, according to data from border authorities.

Of those travelers, 1.4 million -- more than half -- entered the eastern city using visa-free or 240-hour transit visa policies, a more than threefold increase from the same period last year. In late 2024, China expanded its visa-free entry policy to allow 30-day stays for citizens of 38 countries, including Japan, Denmark, and Finland.

According to data from Tongcheng Travel, top destinations for inbound tourists in the first six months included Shanghai, Beijing, Shenzhen, Guangzhou, and Chengdu. A significant portion of travelers came from Singapore, Malaysia, Thailand, Vietnam, and South Korea, followed by visitors from Russia, based on hotel booking data.

Trip.Com Group, another leading travel agency, reported that international travel bookings to China via its platform doubled in the first quarter compared to the previous year. Meanwhile, bookings for leisure products tripled during the same period.

“Inbound tourism to China has now recovered to about 70 to 80 percent of pre-pandemic levels after two to three years,” The Paper reported yesterday, citing James Liang, co-founder and chairman of Trip.Com. “It’s possible that by the end of this year, inbound tourism could fully recover -- or even exceed -- pre-Covid-19 levels.” Liang noted that China’s recovery has lagged behind Europe and especially the United States, due in part to the lack of visa exemptions and the high cost of European airline tickets.

However, he believes there is still significant growth potential for inbound tourism. The tourism sector in the United States accounts for 1 to 2 percent of GDP, equating to USD1 trillion to USD2 trillion, per Liang. "China can absolutely reach that level as well, so this represents a trillion-yuan-level increase in consumption." If China raises the tourism sector’s contribution to GDP by one or two percentage points, it would translate into a 10 to 20 percent increase in the overall size of the industry, he added.

While many countries would struggle to accommodate such an influx of foreign tourists, China’s large-scale infrastructure and capacity make it uniquely prepared to handle the growth, Liang concluded.

Editor: Emmi Laine