China's Economy Has a Tourism Problem

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While more foreign nationals traveled to China this year, the country remains far from reclaiming its pre-pandemic tourism levels, which could provide a much-needed economic boost.

The country has rolled out a series of measures to attract more travelers and bolster tourism as it grapples with sluggish domestic consumption, mounting local government debt, and a faltering housing market.

What To Know

Last month, China extended visa exemptions to nine countries—eight European nations plus Japan—bringing the total to 38 nationalities that have yet to reciprocate. This year, the country also added Singapore, Thailand, and the Solomon Islands to its growing list of mutual visa-exemption partners.

Last week, transit policies were relaxed for 54 countries, including the United States, United Kingdom, and Canada. Travelers from eligible nations can now transit visa-free through 60 ports across 24 provinces and regions for up to 10 days—a sharp increase from the previous three- or six-day transit limits.

The relaxed policies appear to be yielding results. In the first half of 2024, China recorded 14.64 million foreign national arrivals, marking a 152.7 percent year-on-year increase, according to China's National Immigration Administration. However, this figure still represents a 70-percent decline from pre-pandemic levels in 2019, a year that generated $131.3 billion in tourism revenue.

Among these arrivals, 11 million were tourists, reflecting a 70-percent year-on-year increase but only reaching 70 percent of H1 2019 levels. China's immigration agency reported 8.2 million foreigner entries in the third quarter, a 48.8 percent rise from the second quarter. More than half of these entries, both in H1 and Q3, were visa-free.

What People Are Saying

World Politics Review: "Since reopening its borders in late 2022, the country has not even come close to reaching pre-pandemic tourism levels, even as other popular destinations around the world reached new peaks due to pent-up demand once travel restrictions were lifted. The lack of spending by tourists only worsens the problems facing China's economy."

Mao Ning, Chinese Foreign Ministry spokesperson: "With China opening its door wider and adding more countries to its visa waiver program, there is no doubt that this China travel boom will continue," Mao told reporters earlier this month.

"As Confucius famously said, 'it is delightful to have friends coming from afar.' We Chinese are a warm and hospitable people, and China will always embrace the world with open arms. We welcome more international friends to come and see, experience, and understand China."

What's Next

China's immigration agency forecasts that foreign arrivals will continue to rise in the second half of the year, with the China Tourism Association predicting tourism will account for at least 9 percent of GDP by the year's end.

However, winning back tourists from Western countries may prove difficult, as China has increasingly been perceived as unwelcoming in recent years, analysts say.

"Beijing's draconian COVID-19 lockdown measures, which lasted nearly three years, exacerbated a growing perception—tied to geopolitical tensions in Western countries—of China as uninviting," World Politics Review wrote. "Meanwhile, crackdowns on political dissent, the further tightening of space for free speech, and high-profile arrests of foreign nationals in China have only compounded that view."

The U.S. State Department continues to maintain a Level 2 travel advisory for China—"exercise increased caution"—citing risks of arbitrary enforcement of local laws, including exit bans.

Newsweek reached out to the Chinese Tourism Association by email with a written request for comment.

Tourist Takes Selfie in Harbin, China
Tourists take photos on the snow sculptures at Harbin Ice and Snow World on December 21 in Harbin, Heilongjiang Province, China. International arrivals in China have been steadily recovering but are still far below pre-pandemic... Weitao Tian/Getty Images
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