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Travel
05 January 2025

Chinese New Year Travel Revival Boosts Economy

Relaxed visa policies attract higher international tourist numbers, enhancing commercial opportunities across China.

With the dawn of 2025, China is witnessing a significant uptick in travel and commerce as the Chinese New Year approaches. According to the National Immigration Administration, the country has enhanced its transit visa policies, extending stay durations from 72 and 144 hours to 10 days, allowing travelers from 21 new entry and exit points. This has led to an explosive growth in international visitors, with online searches for hotels and flights to China soaring by 87% just one hour after the announcement.

This renewed interest is reflected in the overall statistics of inbound tourism, which experienced over 2.9 million foreign arrivals from January to November 2024, marking an 86.2% year-on-year increase. Particularly notable is the 123.3% jump among travelers using the visa-free scheme, translating to approximately 3,600 foreign visitors entering China every hour.

The charm of Chinese cities like Shanghai and Guangzhou has beckoned international tourists, many of whom are drawn by recent visa exemptions aimed at Korean citizens, which allow for stays of up to 30 days. The implementation of this policy spurred excitement among South Koreans, with social media campaigns like #FridayGoToChina trending, encouraging young travelers to explore the vibrant culture and affordable travel options.

On New Year’s weekend, popular tourist locations such as Shanghai expressed their capacity to welcome large numbers of visitors. Local establishments, particularly the ice cream chain Dinara, noted surges during weekends, attributed mostly to youthful Korean tourists. Flights from cities like Jeju and Busan to Shanghai are seeing fares drop, rendering them very accessible for weekend getaways.

Guangzhou also remains heavily favored among tourists, boasting more than 4.3 million foreign travelers during the holidays, of whom many benefited from the visa-exempt entry. This port city reported a daily average of about 310 flights coming and going, showcasing its status as a key international gateway.

The trend of international tourism is not just confined to major cities. Areas such as the Zhangjiajie National Forest Park, renowned for its stunning natural vistas, have also become popular with tourists eager to explore beyond traditional urban centers. The focus on unique local experiences enhances the tourism industry's appeal, providing foreign visitors with authentic Chinese cultural encounters amid the increasing pace of globalization.

With countries urging for economic recovery, local businesses have begun adopting measures to grab their share of the incoming tourist dollars. Most restaurants, for example, are updating their menus to feature internationally recognized names for traditional dishes, like translating “ma po tofu” directly from its Chinese name to its phonetic equivalent which is more recognizable for visitors. Despite this, some critics observe the necessity for improved translation not just on menus but within various aspects of the tourism experience itself.

China's challenge lies not only in attracting visitors but also providing them with convenience and comfort. While improved visa policies have been met with enthusiasm, potential visitors face hurdles like misunderstandings with mobile payments, which tend primarily to cater to local nationals. The leap to full integration requires increased awareness of foreign payment practices and potentially reworking payment schemes to encourage easier access for international tourists.

The government appears aware of these challenges; significant strides have been made to facilitate foreign card acceptance, and apps like WeChat and Alipay have undergone upgrades to ease the onboarding process for international users. These moves signal acknowledgment of varied customer expectations.

Meanwhile, the demand for well-versed English-speaking tour guides is sharply rising. Local tourism associations report a concerning decline of skilled, multilingual guides, leading to calls for immediate action to bolster staffing as touristic interest surges. Many experienced guides had drifted away from the profession during COVID-19 lockdowns, and their return is necessary for ensuring high-quality services for the incoming wave of visitors.

2025’s prospective influx of tourists holds promising economic potential for Chinese markets. Prior assessments indicated China's inbound tourism revenues may reach between $1.7 and 4.5 trillion over the next decade, as improved conditions make it easier for foreign visitors to engage with the local economy

Experts predict the upcoming Chinese New Year celebrations will serve as both reflection and precursor to broader trends affecting the travel and tourism sector. With Chinese authorities optimistic about tourism's recovery, clarity remains around practicality and efficiency balancing the welcoming nature of their upcoming celebrations. Authorities foresee increased foreign footfall dramatically reshaping the commercial landscapes throughout 2025 and beyond.