The recent policy package released by the Ministry of Commerce (MOFCOM) signals a transition from traditional tourism to a sophisticated services trade model. Travel services currently represent over 25% of China’s total services trade, making it the single largest component of the sector. By streamlining visa procedures and payment integration, the government aims to leverage this 25% share to drive high-quality development and increase foreign direct investment.
In 2025, China recorded 35.17 million foreign visits, a 30.5% year-on-year increase that directly influenced the 393.98 billion yuan ($57 billion) generated in travel service exports. This revenue figure represents a 49.5% growth rate compared to 2024 and stands at 1.6 times the levels recorded in 2019. Such data confirms that the inbound market has not only recovered but has expanded its per-capita spending capacity significantly.
The expansion of the 240-hour visa-free transit policy to 60 ports has been a primary catalyst for this growth, resulting in 40.6 million arrivals within the first year of implementation. Travelers utilizing this specific visa-free scheme surged by 60.8% compared to pre-revision benchmarks. Currently, 73% of all foreign visitors enter the country visa-free, supported by unilateral exemptions for 50 nations and mutual arrangements with 29 others.
According to reporting by People’s Daily, the integration of dining, accommodation, and cultural entertainment into a unified digital ecosystem is essential for maintaining this momentum. By removing bottlenecks in international payment options and tax refund processing, the government intends to capture a higher percentage of high-value-added spending in sectors like health care, education, and professional business services.
From a structural perspective, the 49.5% growth in service exports allows Chinese enterprises to gain direct exposure to international consumer preferences without leaving the domestic market. This feedback loop is vital for domestic firms looking to move up the global value chain, as it provides real-time data on service standards and consumer expectations from a diverse 35-million-person sample size.
The policy also outlines specific support for “sports tourism” and “educational training,” sectors that typically command higher margins and longer stay durations than general sightseeing. For example, a medical or educational visitor often stays 3 to 5 times longer than a transit tourist, resulting in a disproportionately higher contribution to the 393.98 billion yuan total revenue.
Experts suggest that the transition to a “services trade hub” requires a coordinated 10% to 15% increase in cross-departmental efficiency, particularly between customs, finance, and transport authorities. Improving the convenience of “touring and ticketing” through centralized digital platforms will be a key metric for determining the success of the new measures in the second half of 2026.
The 30.5% increase in foreign visits also supports the domestic labor market, particularly in the hospitality and cultural sectors, which have seen a steady rise in demand for multilingual staff and international-standard amenities. This human capital development is a secondary benefit that strengthens China’s long-term competitiveness in the global services market.
Ultimately, the goal is to create an environment where inbound consumption acts as a sustainable secondary engine for the national economy. With travel service exports already reaching $57 billion, the focus now shifts to maintaining the 49.5% growth trajectory through continuous optimization of the consumption environment.
In summary, the 2026 policy rollout is a calculated move to broaden the domestic market and sustain economic momentum through high-standard opening up. As visa policies become even more inclusive and payment barriers are eliminated, China is well-positioned to exceed its 2025 performance and set new records for service-based trade.
News source:https://peoplesdaily.pdnews.cn/china/er/30051807244
