A recent report from the "Inbound Tourism" research group at the Institute of International Service Trade under the Ministry of Commerce indicates that China's inbound tourism market achieved record-breaking performance in 2025. The annual number of international tourist arrivals reached 82.035 million, marking a 26.4% year-on-year increase. Travel service exports surged to $55.16 billion, a substantial 49.1% growth compared to the previous year, reaching 1.6 times the level of 2019.

The report highlights that inbound tourism revenue currently accounts for less than 0.5% of China's GDP, whereas Thailand exceeds 10%, and European and American countries generally range between 1% and 3%. If China can elevate this proportion to internationally comparable levels, it signifies a potential market expansion of approximately 1 to 3 trillion yuan waiting to be unlocked.

Inbound tourism has become a crucial channel for China to reduce its service trade deficit and optimize its trade structure. In 2025, China's travel service exports hit a historic high of $55.16 billion, significantly narrowing the service trade deficit. The strong export growth directly contributed to a notable reduction in the service trade deficit, which decreased to $116.02 billion in 2025 from $164.66 billion in 2024.

Visa-free policies have played a significant role in driving the inbound tourism surge. In 2025, 30.08 million foreigners entered China through visa-free channels, accounting for 73.1% of total international arrivals and representing a 49.5% year-on-year increase. By the end of 2025, China had granted unilateral visa-free status to 48 countries, bringing the total number of visa-free countries to 77.

South Korea, Thailand, Singapore, Malaysia, and Japan ranked as the top five source countries, all benefiting from visa-free arrangements. Meanwhile, long-haul markets such as Russia, Italy, and Australia showed particularly strong growth, with the average monthly increase of Russian tourists in Shanghai exceeding 80% following the implementation of visa-free policies.

Tourism demonstrates significant consumption multiplier effects. Data cited in the report shows that for every 1 yuan generated in tourism revenue, related industries gain 4.3 yuan. As "incremental demand" for domestic consumption, inbound tourists' primary spending across six core categories—dining, accommodation, transportation, sightseeing, shopping, and entertainment—creates multiple rounds of economic expansion through industrial chain transmission.

The employment impact is equally substantial. The report estimates that inbound tourism will directly and indirectly support over 14.3 million jobs in 2025. Core positions such as foreign-language guides, luxury hotel services, and cross-border tourism operations offer average monthly salaries exceeding 6,000 yuan, higher than the national average for the service industry. Seasonal incomes for related positions in border and rural areas are 2 to 3 times higher than traditional agricultural jobs.

The report presents a positive outlook for China's medium to long-term inbound tourism prospects. With continuous expansion of visa-free arrangements (including unilateral visa-free policies for the UK and Canada starting in 2026), international flight recovery to over 7,000 weekly flights, and comprehensive implementation of instant tax refunds for shopping, inbound tourism is expected to enter a rapid growth cycle characterized by both quantity and quality improvements.

The World Travel & Tourism Council forecasts that by 2035, China's travel and tourism sector will contribute over 27 trillion yuan to the economy. International tourist spending is projected to reach approximately 1.5 trillion yuan, with the industry supporting more than 100 million jobs.

A representative from Trip.com Group stated that digital platforms have become core hubs connecting China's tourism supply with global demand. The group has utilized AI technology to provide product information in up to 16 languages for over 8,000 domestic attractions and 450,000 hotels, while offering real-time cross-language translation services to facilitate communication between merchants and international users. Through continued investment in AI, multilingual services, and fulfillment capabilities, Trip.com aims to help more Chinese tourism businesses reach the global stage and enable international visitors to experience China conveniently and deeply.