After completing a recent six-day tour of Shanghai, Chengdu and Jiuzhaigou, Phuong Hoa of Hanoi said traveling to China was more convenient than she had expected.

“The visa, payment and language barriers my friends experienced before Covid no longer exist.

“I only needed an ID card and a portrait photo to apply for a visa. Once in China, I just carried my phone and passport to visit and shop through mobile apps.”

According to the World Travel and Tourism Council, China’s tourism industry contributed US$1.67 trillion to the country’s economy in 2024, a 23% increase from 2023 and generating over 82 million jobs.

Domestic travelers accounted for 85% of total tourism spending, but the international segment is becoming a key driver of growth.

Foreign visitor spending was estimated at $139 billion, up 66% from 2023 and 10% from pre-Covid levels. In the first quarter of this year China received more than 35 million international arrivals, up 19.6% year-on-year, according to its Ministry of Culture and Tourism.

What’s behind the surge in foreign spending?

Industry experts credited the growth to a combination of open and convenient visa policies, technological innovation and China’s rich cultural and natural attractions.

The country has visa exemption agreements with 25 countries and offers unilateral exemptions to travelers from 38 others.

It has also extended the visa-free transit period to 240 hours (10 days) for visitors from 54 countries.

The Immigration Department reported that more than 70% of the 9.2 million foreign visitors in the first three months of 2025 entered under a visa-free policy.

During the recent Labor Day holiday 380,000 foreigners entered the country under visa-waiver arrangements, an increase of 72.7% year-on-year.

Over the three-day period mobile payment giant Alipay reported a 180% surge in spending by international tourists.

Since mid-2023 foreign visitors have been allowed to use Alipay and Weixin Pay e-wallets with their passports and international credit cards. In cities like Beijing, travelers can also use all-in-one tourist cards to pay for public transport and entrance fees at major attractions.

“I took 1,000 yuan just in case I couldn’t use my e-wallet, but I didn’t even have to use cash once,” Hoa said.

Shopping is encouraged by a more favorable tax refund policy. China has lowered the minimum purchase requirement, raised the cap for cash refunds, and expanded the list of eligible products.

Liu Jia of the National Immigration Administration told news agency Xinhua that international visitors have significantly increased spending in sectors such as hospitality and retail, fueling investment.

Julia Simpson of the WTTC called the expanded tax refund and visa waiver policies “smart and globally minded strategies.”

“This is long-term thinking focused on competitiveness, visitor experience and restoring China’s position as a world-class destination.”

In Shanghai, authorities have established tourist information centers, installed multilingual signs, and enabled international card payments at popular destinations for the convenience of foreign visitors.

Connie Cheng, deputy director of the Shanghai Culture and Tourism Bureau, said the city welcomed 1.26 million international visitors in the first quarter of 2024, a 61.9% increase from the previous year.

On Trip.com, service bookings in Shanghai surged 130% during the May Day holidays, making it the top travel destination in China.

Across the country, particularly at museums and heritage sites, smart tour guides are becoming more widespread.

These devices use a combination of virtual reality (VR), augmented reality and 3D technologies to bring history to life, allowing visitors to interact with artifacts, animate ancient paintings and even converse with historical figures.

At the Chengdu Museum in Sichuan, for example, visitors can use VR headsets for enhanced, interactive experiences.

According to the WTTC, China’s strength lies not only in its vast domestic market but also in its strategic reopening to global tourism.

Infrastructure investment, streamlined visa processes and efforts to elevate China’s global brand are paving the way for a broader, more sustainable recovery.

“All signs point to China’s travel and tourism industry being on the right track,” Simpson said, predicting that foreign visitor spending would remain “very positive” throughout 2025.