Amid widespread economic downturn in China, Beijing has implemented a series of preferential policies targeting European and American countries in an attempt to boost international tourism. However, these measures have had limited effectiveness as perceptions of (Communist) China have shifted in the West.
Starting from December last year, the Chinese authorities unilaterally implemented visa-free policies for more than a dozen European countries including Germany, France, Italy, the Netherlands, and Spain, which were expanded to include countries such as New Zealand and Australia as of July 1st this year.
Previously, the 144-hour transit visa-free policy covered 37 ports and applied to citizens of 54 countries including the United States, Canada, and the United Kingdom.
Authorities have also simplified the visa application process; since January 1st, tourists from the United States no longer need to provide round-trip tickets, hotel reservations, itineraries, or invitation letters when applying for tourist visas, making it easier for American tourists to visit China.
In March this year, a series of measures were introduced to help foreigners with cash and mobile payment usage while in China.
Despite these efforts, the number of foreign tourists entering China has not yet returned to the levels seen in 2019.
According to the latest data from the National Immigration Administration, from January to July this year, China welcomed over 17.25 million foreign tourists, a 130% increase compared to 2023. However, this figure still falls far short of the 97.7 million foreign tourists China received in 2019.
Skift Research’s latest travel situation report indicates that China has dropped out of the top 10 countries for international inbound tourist numbers in 2023.
In contrast to China, Japan has been welcoming over 3 million international tourists each month since March, with a total of 17.78 million international tourists visiting Japan in the first six months of this year, surpassing China and far exceeding 2019 levels.
Data from the Korea Tourism Organization shows that in the first half of 2024, South Korea received a total of 7.7 million foreign tourists, essentially recovering to the same level as in the first half of 2019.
The latest report from the European Travel Commission (ETC) shows that in the second quarter of 2024, the European tourism industry continued to recover, with inbound numbers (+6%) and overnight stays (+7%) surpassing 2019 figures, showing a 12% and 10% year-on-year increase, respectively.
So far this year, Spain (+25%), Greece (+25%), Italy (+20%), and France (+16%) have seen the largest increases in inbound spending in Europe.
Professor Li Qingsong, head of the Department of Hotel and Tourism Management at Fu Jen Catholic University, told Dajiyuan that loosening visa requirements is just one method, and there are many accompanying measures that need to be implemented simultaneously, including issues such as the exchange rate of the renminbi and flight schedules. Ideology or political beliefs also play a role, as some American professors Li knows are unwilling to travel to China due to these factors.
American economist Davy J. Wong told Dajiyuan that most global tourism markets have essentially returned to pre-pandemic 2019 levels, but the number of foreign tourists entering China is significantly lower than in 2019.
He cited three main reasons for this: strict containment policies implemented by Beijing during the pandemic causing disruptions in flights, routes, and tourism infrastructure, strained relations between China and the West leading to a decrease in European and American tourists, and China’s recent economic downturn. Wong emphasized that the impact of the tourism industry on China’s GDP is significant.
Despite stringent pandemic prevention measures and a decrease in flight numbers leading to a reduction in inbound foreign tourists, these factors alone are not enough to explain the current situation.
Huang Songshan, director of the Tourism Research Center at Edith Cowan University’s Business School and Law School in Australia, believes that part of the reason may be attributed to changes in the global geopolitical landscape.
He pointed out that a 2023 survey conducted by the Pew Research Center showed that the majority of people in Western countries have a negative view of China. The increasing control exerted by the Communist Party on society could make foreign visitors in China uncomfortable.
In recent years, the Chinese authorities have issued a series of laws related to national security and utilized multimedia formats such as comics, videos, animations, and documentaries to depict foreigners, especially Americans, in a negative light.
In June this year, two attacks on American teachers and Japanese residents in China were widely believed to be related to anti-foreign propaganda by the Chinese Communist Party.
The anti-spying measures implemented by the Chinese authorities create an invisible net enveloping every corner of Chinese society, causing foreign individuals involved in data and information industries to feel like they are being monitored once they arrive in China, posing new risks to foreign companies, business travelers, scholars, journalists, and researchers.
Official travel advisories issued by some Western governments also reflect this sentiment.
The US warns travelers that due to arbitrary enforcement of local laws, including exit bans and the risk of mistaken detention, they should reconsider traveling to mainland China.
The Canadian government updated its travel advisory in June and advised its citizens to exercise a high degree of caution in China, mentioning the potential for surveillance during communications and the possibility that Chinese authorities may review stored or accessed content on electronic devices.
The Australian government also updated its travel warning on July 1st, advising Australians to exercise a high degree of caution in China due to the risk of arbitrary detention or severe enforcement of local laws.
The UK government reminds its citizens that China is a one-party dictatorship and stresses the importance of paying attention to political and cultural sensitivities. When China displays exclusionary sentiments or attitudes, individuals may become targets of attack.
The Irish government even warned its citizens on May 16th that Chinese authorities may impose exit bans on individuals to prevent them from leaving the country.
The authorities on one hand attract foreign tourists, but on the other hand drive them away, which undoubtedly exacerbates foreign tourists’ concerns.
In June, the Chinese Communist Party issued opinions on punishing “Taiwan independence” elements, prompting Taiwan’s Mainland Affairs Council to raise its travel advisory for mainland China, advising Taiwanese people to avoid non-essential travel.
On July 1st, the new National Security Regulation in China officially took effect, empowering customs officers to inspect personal electronic devices at entry ports, causing concerns among foreigners and foreign businessmen about possible arbitrary law enforcement.
South Korea has reminded its citizens to pay attention to relevant risks; some Japanese companies have informed their employees not to bring smartphones from Japan when traveling to China.
Mr. Liang, who has been living in Tokyo for many years, told Dajiyuan that previously, China granted visa-free entry to Japanese citizens, but this was temporarily suspended due to the pandemic, and has not been reinstated for political reasons. Many people found it too troublesome and canceled their trips; now the authorities have introduced phone checks at entry points. Japanese people are extremely sensitive about privacy, so they are very reluctant to take the risk of being randomly selected for inspection.
In the midst of a bleak economic situation in China, inbound tourism has become an important avenue for Beijing’s economic growth. Since 1998, the authorities have clearly identified the tourism industry as a new growth point for the economy, no longer just a “diplomatic endeavor,” as attracting international tourists to consume in China signifies a net export of services.
Compared to ordinary commodity exports, inbound tourism generates a multiplier effect that stimulates job creation and further expenditures, triggering a chain reaction. For example, in 2017, the direct contribution of the tourism industry to GDP was only 3.3%, but the total contribution reached 11%.
According to statistics from Statista, the total contributions of the tourism industry to China’s GDP from 2014 to 2022 were 9.4%, 7.9%, 9%, 11%, 11%, 11.6%, 4.5%, 4.6%, and 3.3%, respectively.
David Huang stated that the average proportion of the global tourism industry to GDP is around 3%; however, the tourism industry’s contribution to China’s GDP exceeds the global average, reaching 11.6% in 2019. Even in 2022, despite the decline due to the pandemic, it accounted for 3.7% of GDP.
“The impact of the tourism industry on GDP is very high, and if foreign tourists do not come to China, it will have a certain negative impact on the Chinese economy.”
Huang pointed out that the number of foreigners traveling to China has been increasing from Asian, African, and Russian countries, but there has been a noticeable decrease in tourists from Europe and America. The tourism spending of Europeans and Americans in China belongs to the middle to high-end consumption sector, with an estimated contribution to GDP of not less than around 3%.
He explained that if fewer Europeans and Americans visit China, it will definitely have a negative impact on the Chinese economy and imply negative implications for attracting international markets, the development potential of the international tourism industry, and international image promotion. It not only isolates the Beijing government but also creates a certain sense of estrangement between the Chinese and the rest of the world.
“Places with developed tourism, such as Japan and France, have a much greater global influence. For example, Japan has a significant influence on Southeast Asian culture. China used to have many fans worldwide during its prosperous tourism industry, but now it is difficult to maintain that level.”