A $1.8 Trillion Tourism Economy Is Closing the Gap
China's travel and tourism economy grew 9.9 percent in 2025, more than twice the global average, putting it on course to challenge the United States for the world's largest tourism economy before the end of the decade. Data from the World Travel & Tourism Council (WTTC) put China's contribution to tourism GDP at about $1.8 trillion, compared with approximately $2.6 trillion for the United States.
Contents
- A $1.8 Trillion Tourism Economy Is Closing the Gap
- Visa Waivers Reach About 50 Countries
- Different Entry Routes Serve Different Travelers
- Visitors Move From Monuments to Daily Life
- Hotels, Jobs and Shopping Follow the Arrivals
- Hainan Combines Flight Discounts With New Routes
- China Opens as Competitors Tighten Access
- Travel Access Becomes Part of Diplomacy
- Older Travelers and Generation Z Need Different Services
- More Flights and Digital Changes Support the Forecast
- What to Know
The United States still held an advantage of about $800 billion, but its tourism economy grew by less than 1 percent last year. International visitor spending in China rose more than 10 percent, while American tourism revenues fell nearly 5 percent. The difference matters because the size of a tourism economy reflects much more than the number of foreigners arriving: it measures the economic contribution of travel and tourism.
Gloria Guevara, president and CEO of the WTTC, said China could close the gap within three to four years if current growth continues. Her assessment makes the timing conditional on sustained expansion, while pointing to a possible change in leadership by 2030.
As of April 24, 2026, China's push combines easier entry, better transport connections, shopping incentives and a growing appetite for experiences beyond its best known monuments. Foreign visitors are increasingly spending time in ordinary neighborhoods, learning local traditions and traveling to smaller cities. The Chinese Foreign Ministry describes this change as a move from "experiencing China" to "integrating into China."
The combination suggests a shift in how China attracts visitors and where their money goes, rather than simply a temporary recovery after the pandemic. The central test is whether faster growth can continue as the country brings more destinations, businesses and transport services into the international travel market.
Visa Waivers Reach About 50 Countries
China now gives citizens of approximately 50 countries unilateral entry without a visa for stays of up to 30 days. A unilateral waiver means China grants the access itself, alongside separate agreements under which two countries give each other's citizens similar privileges.
The United Kingdom and Canada joined the unilateral scheme in February 2026, following January visits to China by British Prime Minister Keir Starmer and Canadian Prime Minister Mark Carney. Both leaders presented the arrangements at home as gains for business travelers and tourists from the middle class. Canada's inclusion also expanded access from North America.
Among the five members of the Five Eyes intelligence alliance, only the United States remains without this facility. Australia and New Zealand received access in 2024. China also maintains reciprocal agreements allowing entry without visas with 29 countries.
The National Immigration Administration reported that entries without visas rose nearly 30 percent compared with a year earlier in the first quarter of 2026. Travelers entering without visas accounted for 77.9 percent of all foreign arrivals during that period, showing how central these arrangements have become to inbound travel.
Eligible visitors do not need to notify Chinese embassies in advance. They must carry passports valid for at least six months and hold confirmed return tickets. Most of the current visa waiver arrangements have been extended through December 31, 2026.
Different Entry Routes Serve Different Travelers
China's 240-hour transit arrangement operates through 65 designated ports. Transit schemes permit eligible travelers to spend a limited period in China while passing through on a journey, with arrangements ranging from 24 to 240 hours for approximately 55 nations.
Special access also covers cruise passengers arriving at 13 coastal cities and tour groups visiting places including Hainan and the Pearl River Delta. Together with the unilateral and reciprocal waivers, these routes give visitors several ways to enter, depending on their nationality and journey.
China introduced the K-visa in October 2025 for young graduates in science, technology, engineering and mathematics, commonly grouped under the abbreviation STEM. The visa creates an alternative to the US H-1B program for this group. Analysts describe the combined changes as China's most open border policy in modern history, coordinated across departments responsible for foreign affairs, interior matters, the economy and tourism.
The main steps span several years:
- 2024: Australia and New Zealand secured access without visas.
- October 2025: China introduced the K-visa for young STEM graduates.
- January 2026: Starmer and Carney visited China and highlighted travel access as an outcome.
- February 2026: The United Kingdom and Canada joined the unilateral scheme allowing stays of 30 days.
- First quarter of 2026: Entries without visas increased nearly 30 percent compared with a year earlier.
- December 31, 2026: Most current visa waiver extensions are scheduled to run through this date.
Visitors Move From Monuments to Daily Life
Foreign travelers are increasingly looking beyond quick visits to the Great Wall and the Forbidden City. Artifact restoration workshops, ancient murals in Dunhuang, tea ceremonies in the Wuyi Mountains and Qinqiang opera lessons in Xi'an offer ways to participate in local culture rather than simply photograph it.
Industry experts describe the interest as "being Chinese for a day." Generation Z travelers are particularly drawn to participation, helping drive demand for hanfu traditional clothing experiences, dumpling making workshops and porcelain firing sessions. The change reflects a move from curiosity about famous sights toward a closer connection with everyday customs.
Shanghai, Beijing, Guangzhou and Shenzhen remain the main gateways, but Chengdu, Xi'an, Guilin and Kunming are attracting growing numbers of foreign visitors. During the 2026 New Year period, flight bookings to Sanya and Jieyang doubled, while bookings to Taiyuan, Changzhou and Kunming increased by more than 30 percent.
Smaller municipalities, including Nanchong, Daqing and Ordos, are also receiving foreign visitors. Expanded networks of high speed trains now reach cities in the third and fourth tiers, while better regional air connections help travelers complete the final stretch to remote attractions.
Foreign visitors frequently cite secure streets, convenient payments through Alipay and WeChat Pay, and efficient rail travel as reasons to explore further. Iren Helperin, a tourist from New York visiting Lijiang, said she could carry her phone openly in China without the security concerns she associated with travel in Europe. Her experience illustrates the sense of safety that helps visitors venture into residential neighborhoods and local markets beyond heavily policed tourist areas previously considered difficult for foreigners to access.
Hotels, Jobs and Shopping Follow the Arrivals
The Peninsula Beijing now reports a guest mix evenly divided between domestic and international travelers, illustrating a new avenue for growth in China's luxury hotel sector. Shanghai is seeing substantial growth in international visitors, while Beijing is recording strong trends among diplomatic visitors, business travelers and returning leisure tourists from the United States, United Kingdom, Australia and Mexico.
The hospitality industry projects employment growth of 20 percent to meet rising demand. More arrivals create work across accommodation, food services and other businesses that support visitors, extending the economic benefits beyond airports and major attractions.
Beijing has lowered the minimum purchase needed for a departure tax refund from 500 yuan to 200 yuan and raised the cash refund ceiling to 20,000 yuan. A departure tax refund returns eligible tax paid on purchases when a visitor leaves, making participating shops more attractive to foreign customers.
The city has also expanded accredited refund shops across tourist districts, transport hubs, airports, seaports and land crossings. The changes nearly doubled sales of goods eligible for tax refunds. The planned "departure tax refund 2.0" upgrade is expected to lower spending thresholds further and bring more stores into the scheme, with particular benefits for Hainan's duty free shopping market. No launch date was given.
Online travel agency Tongcheng Travel has introduced an artificial intelligence service intended to support visitors throughout their journeys, from planning itineraries to booking flights and hotels. Provincial governments are also working with travel platforms to turn easier national entry rules into bookings for particular destinations.
Hainan Combines Flight Discounts With New Routes
Hainan Province offers entry without visas to citizens of 86 countries and regions. The island received more than 495,000 inbound tourists in the first quarter of 2026, an increase of 54 percent compared with the same period a year earlier.
The province has developed six premium tour routes and ten itineraries built around the ocean. Their themes include family education, wellness and leisure, cultural exploration and food, broadening the island's appeal beyond beach holidays. Cooperation linked to the Asian Beach Games in Sanya brings sporting events into the province's tourism plans.
Trip.com and Hainan have launched a flight voucher campaign worth $730,000 for international travelers booking return tickets to Haikou or Sanya. The discounts range from 400 to 600 yuan, with eligibility and minimum ticket prices varying by market.
Travelers from Vietnam, Laos, Cambodia, Thailand, Malaysia, Singapore, Indonesia, Japan, South Korea, Hong Kong, Macao and Taiwan can receive a 400-yuan reduction on flights costing at least 1,600 yuan. Other international visitors qualify for a 600-yuan reduction on bookings exceeding 3,000 yuan.
At those price thresholds, the reductions equal 25 percent and about 20 percent respectively. The campaign's geographic targeting reflects a market approach in which Asian travelers often make shorter, more frequent visits, while European and American tourists tend to stay longer and spend more. Hainan's effort shows how local incentives can direct visitors toward destinations outside the main mainland gateways.
China Opens as Competitors Tighten Access
The United States recorded a 5.5 percent decline in foreign visitors in 2025 amid stricter immigration controls and greater border scrutiny. That decline in arrivals accompanies the nearly 5 percent fall in American tourism revenues, while China's international visitor spending is moving in the opposite direction.
US Customs and Border Protection conducted nearly 15,000 searches of electronic devices between April and June 2025. Detentions at entry points also increased without explanation. Canada, Germany, the United Kingdom, Denmark and the Netherlands warned their citizens about risks associated with entering the United States, helping divert travel toward destinations offering a more welcoming entry experience.
Thailand announced in April 2026 that it would likely replace its blanket arrangement allowing entry without visas for 60 days with screening frameworks tailored to individual countries. The proposal seeks to filter out "undesirable visitors," even though 90 percent of tourists stay for fewer than 30 days.
China's expansion of access therefore comes during a period when some competing destinations are making entry more restrictive. Guevara said the United States is losing market share while China is rising, creating an opportunity for Beijing to attract international travelers who spend heavily.
The contrast also affects China's position as a power seeking greater international connections during a period of global fragmentation. Easier travel gives it another way to draw visitors at a time when border policies elsewhere may make people reconsider their destination.
Travel Access Becomes Part of Diplomacy
Starmer and Carney's promotion of the visa arrangements after their January visits highlights the connection between travel and broader relations with China. Business professionals, academics and people involved in cultural exchanges can use easier access to build relationships alongside formal government talks.
The two prime ministers linked the travel outcomes to cooperation that includes technology, clean energy and trade. Tourism and business visits give people opportunities to meet directly, making contact between countries less dependent on official diplomatic channels alone.
China's approach also draws on the idea of "seeing is believing." International visitors can observe its development themselves, creating opportunities to counter negative portrayals through personal experience rather than through media accounts. The growing interest in daily life, local customs and smaller cities supports that approach by taking visitors beyond a narrow circuit of major landmarks.
Older Travelers and Generation Z Need Different Services
The market described as "silver tourism," aimed at travelers older than 65, is projected to reach $396 million by 2028. An aging population with disposable income and more leisure time is driving demand, creating a need for services that accommodate mobility and health needs.
Chinese rail services now include specialized carriages for older travelers, with accessibility features, nearby bathrooms and trained medical staff. Hotels are also adapting amenities for guests with limited mobility. Many older travelers still struggle with mobile booking platforms, leaving digital literacy as a practical obstacle as more tourism services move onto phones.
Generation Z visitors place a different set of demands on the market. Their interest in authentic participation supports workshops, traditional clothing experiences and cultural activities in which they can take part themselves. The preference is for doing something memorable rather than observing a landmark from a distance.
TikTok, Instagram and YouTube have displaced official tourism promotion as a leading influence on these visitors, with travelers sharing experiences in real time. Their posts can be more persuasive than conventional advertising because viewers see another visitor taking part in an activity or navigating a destination.
A viral video showing wingsuit pilot Zhang Shupeng flying through Tianmen Mountain Square received more than 100 million views and nearly 5 million likes. The attention generated interest in Zhangjiajie among adventure travelers around the world, showing how one widely shared experience can draw attention to a particular place.
More Flights and Digital Changes Support the Forecast
Industry analysts forecast 38 million international visitors to China in 2026, equal to 60 percent of the peak level recorded in 2019, and more than $130 billion in spending. Those forecasts set a substantial growth target while showing that international visitor numbers still have room to recover toward their earlier peak.
Airports face pressure during peak holiday periods, when daily arrivals already exceed 2.05 million. Transport capacity becomes increasingly important as more travelers arrive and continue to destinations beyond the largest cities.
For the summer and autumn season of 2026, 191 Chinese and foreign airlines plan 21,047 flights each week serving 86 countries. The expansion of international routes supports the wider effort to connect visitors with both major gateways and regional destinations.
The Ministry of Commerce and eight other departments have announced plans to study online visa applications and simplify approval procedures for people attending exhibitions and sporting events. Authorities have also signaled intentions to add more eligible countries and test electronic visa systems.
Most current visa waivers run through December 31, 2026, providing continuity for travel planning this year. Further border changes, airline expansion, shopping incentives and provincial campaigns point to a sustained strategy for attracting visitors. Whether China overtakes the United States within three to four years depends on maintaining the growth that gave it a 9.9 percent increase in 2025.
What to Know
- China's tourism economy contributed about $1.8 trillion in 2025, compared with $2.6 trillion for the United States.
- China grew 9.9 percent, while US growth was below 1 percent. WTTC chief Gloria Guevara said China could close the gap within three to four years if current growth continues.
- About 50 countries have unilateral access without visas for 30 days, including the United Kingdom and Canada from February 2026.
- Travelers entering without visas accounted for 77.9 percent of foreign arrivals in the first quarter of 2026.
- International visitor spending in China rose more than 10 percent in 2025, while American tourism revenues fell nearly 5 percent.
- Cultural activities, smaller cities and convenient rail and payment services are changing how foreign visitors travel in China.
- Hainan received more than 495,000 inbound tourists in the first quarter of 2026, up 54 percent, and launched a $730,000 flight voucher campaign with Trip.com.
- Analysts forecast 38 million international visitors and more than $130 billion in spending in 2026. Most current visa waiver extensions run through December 31, 2026.






