China's Tourism Service Trade Shifts Focus to Quality Enhancement

In 2025, China's tourism services trade achieved significant milestones, with 154.5 million inbound visits, including 35.17 million by foreign nationals—a year-on-year increase of 30.6 percent. Travel service exports reached $55.16 billion, reflecting a 49.1 percent jump from the previous year and marking a 1.6 times growth compared to 2019, according to the Institute of International Trade in Services and the National Bureau of Statistics. In the first half of 2026, there were 22.91 million entries by foreign nationals, a 20.4 percent rise, with 77.7 percent being visa-free. During the same period, travel service exports totaled $39.3 billion, up 27.7 percent year-on-year, the fastest growth among China's top five service export sectors.

The transformation in tourism services is propelled by two main factors: institutional opening and digital empowerment. Visa facilitation policies, tax refunds, and competitive pricing have elevated "China Travel" and "China Shopping" as popular trends. Concurrently, digital technologies—including online travel platforms, smart scenic spots, and AI-powered itinerary planning—are enhancing the convenience and personalization of tourism services throughout the entire supply chain.

For the first time, CIFTIS included an exhibition on cultural and tourism services from international exhibitors. This year’s fair featured 413 exhibitors, including 49 foreign institutions, showcasing the collaborative nature of China's cultural sector. The exhibition illustrated how international cooperation is influencing the commercialization and global reach of China's cultural offerings.

Growth in the tourism services trade has been facilitated by systemic changes stemming from institutional reforms. The comprehensive negative-list management system for cross-border trade in services has eased market access barriers. In March 2024, the Ministry of Commerce introduced revised negative lists, consolidating access measures while enhancing transparency and predictability for market entry. These efforts aim to stabilize and expand the tourism sector.

Additionally, the Hainan Free Trade Port, with its open policies, has significantly contributed to the supply of tourism services. The port's policies include lower tax rates and enhanced eligibility for zero-tariff treatments. The pilot free trade zones have encouraged innovative practices, contributing 27.4 percent of foreign investment in the first four months of 2026.

Despite the boost, challenges persist. Currently, inbound tourism contributes less than 0.5 percent to China's GDP. A report forecasts China's potential market size could grow by 1 trillion to 3 trillion yuan ($149.3 billion) over the next decade, but several issues need addressing, including payment difficulties for foreign tourists in smaller markets and limited functionality of domestic travel platforms for foreign users.

Looking ahead, three policy directions could enhance high-quality development in tourism services: 1) Utilize the negative list mechanisms to further open the tourism sector, including broadening the scope for foreign travel agencies and standardizing qualifications for tour guides. 2) Develop a national-level digital service platform to streamline payment and booking processes for inbound tourism. 3) Use platforms like CIFTIS to promote the export of Chinese service standards, shifting focus from merely exporting products to delivering services and soft power solutions. By overcoming existing challenges and enhancing institutional frameworks, China aims to elevate its position within the global tourism value chain, contributing to overall economic growth.