China
Visa-free policies and improved payment services fuel international influx
By Tao Zihui  ·  2024-05-01  ·   Source: NO.18 MAY 2, 2024

 

A visitor learns about dough modeling at the China booth of the ITB Berlin, an annual global travel industry fair held in Berlin, Germany, on March 5 (XINHUA)
During an interview with Beijing Review, Zhou Zhanfeng, who had just seen off a board member from a prominent German automaker and his family, who had traveled to China, in Beijing, disclosed that the visitor had said the following about his first trip to China, "China is so different from what is portrayed in Western media. The Chinese people are friendly and this land is truly awe-inspiring!"

Zhou agreed, saying, "You have to come to China yourself to truly understand what it's like here."

As deputy general manager of CYTS International Travel Co. Ltd. and responsible for inbound tourism from North America, South America, and German-speaking European countries, Zhou underscored the importance of firsthand experience in understanding different countries and cultures, noting that "many people change their stereotypes about China after visiting the country." 

In the post-COVID-19 era, China's inbound tourism market is on the upswing. Zhou, a seasoned industry veteran with over 30 years of experience, has witnessed the fluctuations in the country's inbound tourism sector and persevered through challenging times, with the impact of the pandemic proving particularly detrimental to the tourism sector for three long years. But today, he can see light at the end of the tunnel, expressing his hopes for the country's inbound tourism to return to 2019 levels—or even surpass them.

Foreign tourists visit the Guochao Cultural Festival on the banks of the Liangma River in Beijing’s Chaoyang District (XINHUA)

The situation is indeed gradually improving. According to data from the National Immigration Administration, in Q1 of 2024, immigration authorities nationwide recorded over 141 million entries and exits. Among them, the number of foreign nationals reached 13.07 million.

Beijing, as a major inbound tourism destination, welcomed 469,000 inbound tourists in Q1 of this year, reaching 67.2 percent of the 2019 level, according to official statistics. Shanghai, another leading destination for international tourists, received more than 1.27 million inbound tourists in the January-March period, the city's culture and tourism administration said.

The largest proportion of visitors entering China were tourists, accounting for over 30 percent, followed by business travelers, those visiting friends and relatives, people coming to China for work and students. The countries with the highest number of visitors to China include not only European and North American countries such as the United States, Canada, Germany and the United Kingdom, but also neighboring countries like Russia, Mongolia, the Republic of Korea, Japan, Viet Nam, Myanmar, Laos, Malaysia, Singapore and Thailand.

The inbound passenger traffic at major airports, Shanghai Pudong, Guangzhou Baiyun, Shenzhen Bao'an and Xiamen Gaoqi, among others, had recovered to over 70 percent of their 2019 levels by Q1 of this year.

International cruise companies are also returning to the Chinese market, and cruise ports in cities such as Shanghai, Tianjin, Xiamen and Shenzhen are experiencing a peak in inbound and outbound customs clearance.

China's expanded visa-free policies have greatly fueled the steady recovery of inbound tourism, facilitating people-to-people exchange, promoting tourism, economic and trade cooperation, as well as cultural exchange.

An inbound traveler from India consults how to access to Weixin Pay, a mobile payment service in China, at the Guangzhou Baiyun International Airport in Guangzhou, Guangdong Province, on April 3 (XINHUA)

Facilitating facts 

On July 26, 2023, China resumed its 15-day visa-free entry policy for individuals holding ordinary passports from Singapore and Brunei, allowing them to engage in business, tourism, visiting friends and relatives, and transit in China.

On December 1, 2023, and then on March 14, China also implemented unilateral visa-free policies for individuals holding ordinary passports from France, Germany, Italy, the Netherlands, Spain and Malaysia, as well as Switzerland, Ireland, Hungary, Austria, Belgium, and Luxembourg, as part of a trial program that will run until November 30. As of the end of March, 989,000 foreign nationals from these 15 countries had entered China visa free, accounting for over 60 percent of the total number of visitors from these countries, indicating an overall upward trend.

Luigi Gambardella, President of ChinaEU, a business-led international digital association headquartered in Brussels, capital of Belgium, told Xinhua News Agency that from an economic perspective, China's visa-waiving move is boosting inbound tourism to the country, but can in turn also stimulate investment in the entire tourism-related industry chain.

Gambardella added that the visa-free policy makes it more convenient for European enterprises to participate in, for example, business activities and exhibitions in China. He said considering China's economic scale and strength, this approach can further promote cooperation and understanding between Europe and China, which is especially important in the post-pandemic era. "The recovery of international travel and tourism is essential for global economic recovery and for strengthening international relations," he explained.

The visa-free policy not only encourages people to visit China but also allows them to gain a more comprehensive and in-depth understanding of the country.

Luxembourg's Foreign Minister Jean Asselborn, for instance, has stated that the visa-free policy will encourage more Luxembourgers to visit China, strengthening cultural exchange and trade between the two countries.

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto has told the press that the trial implementation of the visa-free policy by China is good news for Hungarian tourists and businesspeople visiting China. In line with the principle of reciprocity, the Hungarian Government will grant long-term visas to Chinese executives engaged in investment cooperation in Hungary.

The tourism industry is not only a significant driver of economic growth and development but also has the power to enhance understanding and cultural exchange between countries. For tourists, the prospect of "traveling to China without the hassle of applying for a visa" is a promising one.

Romain Pierre, a curator from France, learned about this visa-free policy through his friends in Beijing. "He excitedly told me, 'You no longer need to go through the visa application process to come to China. You can freely visit whenever you want,'" Pierre shared with Beijing Review. "I have traveled to Beijing before, and now I look forward to setting foot in China again. I want to explore more historically rich cities like Nanjing, and go to Guangzhou, and I am excited about taking China's bullet trains and seeing some artificial intelligence at work. I want to enjoy a smart lifestyle!"

Zhou explained that from the industry's perspective, the recovery of inbound tourism has exceeded expectations due to the swift implementation of the visa-free policies. However, he did note that the tourism sector is an industry that requires long-term planning. "Currently, we have begun working on the pricing and overall plan for inbound tourism in 2025, but here's the question to consider: Can the visa-free policy be extended to next year?" he wondered. 

Inbound tourists visit Shanghai's Yuyuan Commercial District on April 6 (XINHUA)

Off to China? 

Though the introduction of various policy measures has contributed to the vitality of the country's inbound tourism market, there are still challenges in the industry's marketing and promotion mechanisms.

In March, Zhou attended the International Tourism Fair in Berlin, capital of Germany, and talked with clients there. "Given the relatively low level of attention the Chinese exhibition booth received, it will be challenging to achieve rapid improvement in the market in a short period," Zhou said.

"Compared to foreign competitors, the marketing and promotion of China's inbound tourism are about a year behind," he added.

Zhou believes that China's inbound tourism market can learn from its peers overseas. This involves government departments providing platforms, while travel agencies, scenic spots, hotels, transportation companies and other tourism-related enterprises all work together to implement coordinated marketing and promotion campaigns.

Zhou further explained that China has traditionally been a long-haul tourist destination for overseas tour operators, with related travel products thus priced higher.

Foreign tourists prepare to board buses to visit some attractions in Beijing and Tianjin on April 7 (XINHUA)

The cost of traveling to China can be a factor affecting people's decisions to visit the country. If travel products and services are priced too high, this may deter some potential travelers who are looking for more affordable options, Zhou continued.

During the pandemic, the airline industry, for one, suffered significant losses with travel halted, leading to unprecedented financial challenges. Global travel has resumed, but airlines are still working to recover from the setbacks. This, combined with higher fuel prices, has resulted in higher airfares—which not every eager traveler can afford.

In addition, with the full implementation of online real-name admission reservation systems at scenic spots, inbound tour operators need to compete for tickets for popular attractions. "For many foreign tourists coming to China, visiting the former imperial palace complex (the Forbidden City) in Beijing is a must, and it is an indispensable product for inbound tourism," Zhou said. Last summer, when overseas tourists flocked to the spot, some of the receiving travel agencies couldn't secure even a single ticket, leading to compensation claims from foreign tour operators and tourists alike.

"This indicates a clear disconnect in the supply chain of inbound tourism. We need to find an feasible and effective solution," he added.

Cash, card or code? 

As Chinese tech giant Alibaba's mobile wallet app Alipay and Tencent's Weixin (WeChat) Pay, a digital wallet service incorporated into the omnipresent Weixin super app, have become the preferred payment methods for many residents across China, the country has evolved into a largely cashless society already. However, this shift toward digital payment has posed challenges for foreign visitors who often rely on cash and bank cards, with many businesses and establishments now preferring, sometimes (unlawfully so) even only accepting mobile payment.

To enhance payment services for foreign travelers in China, the State Council, China's highest state administrative body, issued a guideline in early March focusing on improving bank card services, promoting cash usage, and facilitating mobile payment access for visitors.

In the past month, Chinese authorities have implemented multiple measures to streamline payment processes for international visitors. Leading payment service providers like Alipay and Weixin Pay have also upgraded their services and introduced features tailored to foreign users.

Both platforms now allow foreign visitors to link their international credit cards, such as Visa and Mastercard, enabling them to make convenient and seamless payments at any time and place with just a tap of their mobile screen.

Plus, these payment services now also feature more user languages. For instance, Alipay has expanded its service languages from two, Chinese and English, to 16, including French, German, Spanish, Italian, Portuguese and more. The translation services can be applied to several services within the app, such as ride-hailing, hotel booking, purchasing tickets for scenic spots, public transportation and checking exchange rates.

China has also undertaken efforts to broaden the acceptance of cash in sectors such as transportation, shopping, dining, entertainment, and so on. At the same time, measures are being implemented to ensure that business owners maintain adequate cash reserves to support transactions effectively.

Take Beijing as an example. Numerous merchants in the city are upgrading their POS terminals to accept foreign bank cards in alignment with efforts to promote inbound tourism. Additionally, financial institutions in Beijing's central area have expanded their foreign currency exchange services to better cater to the needs of international visitors.

With the increase in the number of foreign travelers to China, the inbound tourism industry will continue an overall optimistic trend of gradual growth, Zhou concluded.

Printed edition title:Charting a Comeback 

Copyedited by Elsbeth van Paridon 

Comments to taozihui@cicgamericas.com 

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