How China is Boosting Inbound Tourism with New Visa Policies and Tax Refund Reforms?

China’s tourism industry is experiencing a remarkable surge in inbound visitors, with the country’s recent visa relaxations and tax refund system upgrades playing a key role in this boom. As the global travel landscape begins to recover, China has positioned itself as an appealing destination for international tourists, blending rich cultural heritage with shopping opportunities and an increasingly streamlined travel experience. These changes have significantly boosted China’s appeal, with travelers eager to experience both modernity and tradition.

A Surge in Inbound Tourism: Early 2025 Trends

In the first quarter of 2025, China saw a 19.6 percent increase in inbound tourist visits, recording 35.02 million arrivals, according to official data. This impressive rise demonstrates the growing allure of the country as a travel destination. International tourists are flocking to China not just for its historic sites but also for modern shopping experiences, thanks to relaxed visa rules and more convenient tax refund processes. The influx of visitors is also driven by the country’s evolving approach to tourism, which combines commerce and culture seamlessly.

Yiwu, a trade hub in Zhejiang Province, is often referred to as a shopper’s paradise. This bustling city has increasingly become a destination where tourists blend sightseeing with shopping, taking part in a “travel-and-order” model that allows them to purchase goods directly from trade markets while exploring the local culture. This model is gaining popularity, with Yiwu recording approximately 250,000 inbound visits between January and May of 2025, reflecting an 18.6 percent year-on-year increase. The city’s ability to merge tourism and trade is just one example of how China is reshaping its tourism offerings to attract international visitors.

Tax Refund System: A Game-Changer for Inbound Tourism

One of the most significant reforms to impact inbound tourism in China is the adjustment of the country’s tax refund system. The introduction of a “refund-upon-purchase” system allows foreign visitors to claim value-added tax (VAT) refunds directly at the point of sale. This streamlined process has made shopping in China more attractive, encouraging international tourists to spend more while also simplifying the experience. Previously, tourists would need to visit designated refund counters after making purchases, a process that often added unnecessary complexity. Now, this immediate tax refund system incentivizes spending and enhances the overall shopping experience, making China a more attractive destination for those interested in both tourism and retail.

This reform aligns with China’s broader strategy to attract high-spending tourists, particularly those from countries with a strong interest in shopping, such as Japan, South Korea, and Western nations. The ease of claiming VAT refunds enhances the appeal of China as a shopping hub and encourages visitors to spend more on Chinese-made goods and souvenirs.

Regional Success Stories: Jiangsu and Yiwu

Beyond the national improvements, certain regions within China have seen remarkable growth in inbound tourism. Jiangsu Province, for example, recorded approximately 1.15 million inbound visits in the first five months of 2025, reflecting a 37.8 percent increase from the previous year. This surge can be attributed to both the tax reforms and enhanced marketing efforts that showcase the province’s rich cultural heritage and modern attractions.

In particular, the ancient water town of Tongli in Jiangsu has seen a surge in inbound tourism. The number of inbound tour groups visiting Tongli has increased by 85 percent compared to the same period in 2024. The town, with its traditional canals, centuries-old stone bridges, and cultural festivals, has become a major draw for tourists seeking an authentic taste of Chinese culture. Visitors can cruise along the tranquil waterways while enjoying the area’s well-preserved architecture. For many, this combination of traditional Chinese culture and modern tourism infrastructure makes Tongli an ideal destination.

240-Hour Visa-Free Transit: Making Travel to China More Accessible

China has also expanded its 240-hour visa-free transit policy, which now covers citizens from 55 countries. This initiative allows eligible travelers to transit through China without the need for a visa for up to 10 days, provided they remain within designated transit areas. This policy applies to 60 open ports across 24 provinces, including major cities like Beijing and Shanghai, which are key entry points for international tourists. The policy extension has made it easier for visitors from around the world to include China in their travel itineraries, whether they are en route to other destinations or stopping for a short visit.

This visa-free policy has already proven popular with international tourists, who can now explore some of China’s most iconic landmarks without the hassle of securing a visa. In Beijing, for instance, travelers have embraced a range of cultural experiences, including traditional Chinese arts such as diabolo spinning and flower-stick juggling, while also exploring the capital’s ancient neighborhoods. This ease of access, coupled with China’s rich cultural offerings, has made the country an increasingly popular stopover destination.

Cultural and Historical Attractions Seeing a Surge in Visitors

While shopping and convenience have played a significant role in attracting international tourists, China’s rich cultural and historical heritage continues to be a major draw. Iconic sites such as the Terracotta Warriors in Shaanxi Province have seen a surge in visitors. The Emperor Qinshihuang’s Mausoleum Site Museum, home to the world-famous Terracotta Army, has become a must-see destination for many international tourists. According to recent data, Shaanxi Province recorded over 445,000 inbound visits in 2025, reflecting a 66 percent year-on-year increase. This surge in visitors highlights the growing interest in China’s ancient history and cultural landmarks.

International tourists are increasingly eager to experience China’s unique heritage, from the world-renowned Terracotta Warriors to the majestic Great Wall and the Forbidden City. These attractions, combined with the ease of access and new travel policies, are making China an attractive destination for travelers seeking both cultural immersion and modern convenience.

Expanding the Inbound Tourism Market: A Comprehensive Strategy

China’s efforts to boost inbound tourism are not just about attracting tourists for short visits—they are part of a broader strategy to diversify its tourism market and position itself as a leading global destination. The country’s enhanced visa policies, tax refund reforms, and marketing of regional cultural experiences reflect a coordinated effort to increase international visitor numbers while improving the overall travel experience.

The government’s support for inbound tourism is also evident in the investments being made in infrastructure, such as transportation networks, hospitality services, and tourist amenities. By creating an environment where international visitors can easily access China’s attractions, the country is aiming to position itself as a key player in the global tourism market.

Conclusion

China’s inbound tourism is on the rise, driven by a combination of relaxed visa policies, improved tax refund systems, and an increasing focus on cultural and historical tourism. The country’s efforts to create a more welcoming and convenient environment for international travelers are paying off, with significant growth recorded in major cities and provinces. As China continues to refine its tourism strategy, it is likely to see further growth in inbound tourism, with travelers drawn not only to its shopping opportunities but also to its rich cultural experiences.

These reforms are helping to make China an increasingly attractive destination for global tourists, combining convenience, cultural heritage, and modern amenities in a way that sets it apart as a top global travel hub.