Wednesday, June 4, 2025
China’s tourism sector has experienced a remarkable rebound during the Dragon Boat Festival, with both domestic and international travel showing significant growth. Over five million international visitors entered the country, driven by favorable government policies, including the expansion of the visa-free program. These efforts, combined with a revitalized travel infrastructure and rising consumer confidence, have contributed to a surge in tourism, signaling a robust recovery for the sector.
Recent data from several Chinese government agencies, including transport and tourism sectors, reveals significant growth in travel activity during the Dragon Boat Festival holiday. The surge in travel consumption is seen as a clear indicator of recovery in the nation’s tourism sector, a vital part of China’s overall consumption landscape. This growth is largely attributed to the government’s strategic policies, such as the enhancement of travel services and an expanded unilateral visa-free policy for foreign visitors.
Travel Consumption Surge
During the Dragon Boat Festival, from Saturday to Monday, China’s transportation sector reported an impressive 653.7 million inter-regional trips, averaging 217.9 million per day. This represents a 2.5% year-on-year increase, according to the Ministry of Transport (MOT). The growth was seen across all transportation types. Railway travel accounted for 48.03 million trips, marking a 4.3% rise from the previous year. Highway traffic reached 597.32 million trips, up by 2.4%, while air travel totaled 5.63 million trips, reflecting a 1.7% increase compared to last year.
The Ministry of Culture and Tourism (MCT) reported that 119 million domestic trips were made during the holiday, marking a 5.7% increase compared to last year. Domestic tourism spending reached 42.73 billion yuan, reflecting a 5.9% year-on-year growth. This rise in travel and tourism spending highlights the increasing economic significance of the tourism sector in China’s overall consumption recovery.
City-Specific Trends
At the regional level, popular tourist spots also experienced notable increases in both visitor arrivals and spending. Beijing, for example, attracted 8.21 million visitors during the holiday, reflecting a 5.4% growth over the previous year. The city’s tourism revenue also saw a 6.7% year-on-year rise, reaching 10.77 billion yuan. Similarly, Shanghai recorded 6.48 million tourist arrivals, with total tourism expenditure reaching 12.477 billion yuan, marking a 3.3% increase compared to the same period last year.
In central China’s Henan Province, known for its rich cultural heritage, tourism numbers also showed robust growth. Henan welcomed 15.12 million visitors, marking a 4.7% increase, and generated 6.79 billion yuan in tourism revenue, a 5.3% rise from the previous year. These regional figures highlight the broader, nationwide recovery in tourism, pointing to a steady and sustained rebound.
Growth in International Travel
One of the most notable trends during the Dragon Boat Festival was the increase in cross-border travel. The National Immigration Administration (NIA) reported more than 5.9 million cross-border trips, a 2.7% rise from the previous year. This reflects the growing mobility of Chinese consumers as well as the increasing number of international visitors to China, spurred by the government’s expanded visa-free policies.
The visa-free entry policy, which allows nationals from 43 countries to enter China without a visa, has played a key role in this surge. Notably, 231,000 foreign visitors entered China during the holiday period, a staggering 59.4% year-on-year increase. This is in line with broader trends indicating that China’s tourism sector is attracting increasing numbers of international tourists, driven by both the country’s rich cultural offerings and more accessible entry requirements.
Furthermore, data from the People’s Bank of China revealed a significant increase in payment transactions during the holiday, totaling 14.05 billion transactions worth 4.8 trillion yuan. The value of payments made by foreign visitors increased by 58.8% compared to last year, underscoring the growing economic impact of international travel to China.
Policies Driving the Recovery
Experts agree that the robust performance of the travel sector can be attributed to a range of policies and initiatives by the government to stimulate consumption. These include efforts to enhance the travel experience for foreign visitors, such as the unilateral visa-free policies, and the improvement of cultural and tourism services across the country.
As part of China’s broader push to open up to the world, the visa-free policy was extended on June 1 to include Latin American and Caribbean countries, expanding the number of eligible nations to 43. This is seen as a crucial step in strengthening China’s global connectivity and promoting cultural exchange.
Moreover, the first quarter of 2025 saw over 9 million foreign visitors to China, representing a 40% year-on-year increase. These figures reflect China’s growing prominence as a global tourism destination, especially as the country continues to invest in both infrastructure and policy measures aimed at enhancing the travel experience.
Challenges and Future Prospects
While the travel sector shows signs of robust recovery, experts caution that challenges remain. External factors, such as rising protectionism and disruptions to global trade, could still pose risks to the full rebound of China’s consumption economy. Despite these challenges, the government’s continued focus on improving consumer services and facilitating ease of travel is expected to sustain the momentum in the coming months.
Li Changan, a professor at the University of International Business and Economics, emphasizes that further policy support is essential to unlock China’s full consumption potential. He suggests that enhancing household incomes, improving service quality, and providing more convenient consumption options are key areas that still require attention.
Additionally, policies promoting the trade-in of old consumer goods and other strategies to bolster domestic consumption could provide much-needed momentum for sustained recovery.
China’s tourism sector has surged during the Dragon Boat Festival, with over five million international arrivals, thanks to the expansion of the visa-free program and improved travel services. This growth reflects a strong recovery fueled by favorable government policies and rising travel demand.
The strong performance of China’s travel sector during the Dragon Boat Festival holiday signals a successful recovery, with significant increases in both domestic and international travel. Supported by targeted government policies, such as the visa-free programs and improvements in travel services, this growth offers an encouraging outlook for the future of China’s tourism industry. However, sustained efforts to address external challenges and enhance the overall consumer experience will be crucial in ensuring that the recovery continues on a positive trajectory in the months ahead.
