China Struggles to Entice Foreign Tourists?

Since December, China has granted visa-free entry to tourists from several countries, including France, Germany, Italy, Spain, Australia, New Zealand and Poland. Southeast Asian countries including Thailand, Singapore and Malaysia have also struck agreements with Beijing to facilitate visa-free travel. Coming out of Covid, visas are just another level of complexity for travellers. So, to remove that complexity is a good move.

The recent surge in tourism comes after China closed its borders in early 2020 to combat the Covid-19 pandemic and kept them shut until the start of 2023. But even with the visa-free policy boost, far fewer tourists are coming to China now than before the pandemic.

According to official tourism data, China received a total of 49.1 million overseas visitors in 2019, with more than a third coming in for sightseeing and leisure. Revenue from international tourism reached US$131.3 billion that year.

In the first half of 2024, the number of foreign nationals entering China was far lower at 14.6 million. Among them, 8.5 million entered visa-free, accounting for just over half of the total, according to the National Immigration Administration. International tourism revenue data for China has not been published since 2019.

However, China needs to do more than just waive visas to encourage foreigners, experts say. Geopolitical tensions, a government that tolerates no dissent and China’s sometimes belligerent portrayal in some Western media have kept some tourists away. China must also compete for attention with Japan, which is experiencing a boom in tourism thanks to its weak yen.

Another potential hurdle for foreigners is China’s vast digital infrastructure. Paying for everything from transport tickets to restaurant bookings to tourist site admissions is done via QR codes linked to local payment apps such as WeChat and Alipay, making daily interactions difficult for holders of foreign bank cards.

China has allowed foreign bank cards to be linked to Alipay and WeChat, but the system and language barriers remain daunting.

There are lessons for us to understand. We need friendly, Mandarin-speaking counter/immigration staff, payment systems that are user-friendly and a welcoming attitude of those involved in tourism. Our tourism receipts in 2019 was Rm86.1 billion and in 2023 it was RM71.3 billion. This was 17.2% below the 2019 level.

Reference;

China struggles to entice foreign tourists despite campaign, Reuters, 17 July 2024