China elevates tourist shopping boom

28-06-25

China is witnessing an extraordinary revival in tourist shopping as sweeping changes to visa rules and tax refund policies supercharge consumer spending and elevate its appeal on the global tourism map. In late April 2025, Beijing made two pivotal moves: extending its 240‑hour visa‑free transit to citizens of 38 countries and overhauling its departure tax refund system to make shopping easier and more rewarding for international visitors. This combination has ignited a dramatic surge in both tourist arrivals and retail expenditure.

Early results were striking. Just one month after the policy rollout on April 27, departure tax refund transactions doubled—a 116 percent jump—while sales at participating stores spiked 56 percent year‑on‑year. A pioneering "refund‑upon‑purchase" model allows visitors to reclaim value‑added tax (VAT) instantly at the point of sale, rather than later at airport counters. The results speak for themselves: instant‑refund transactions leapt by a staggering 32‑fold, accompanied by a 50‑fold increase in associated sales.

Expansion of refund‑eligible retail outlets has been equally impressive. The State Taxation Administration reports the number of tax‑refund stores increased by approximately 1,303 units, a 40 percent rise from the end of 2024, bringing the total to 5,196 outlets nationwide. These stores are strategically located in airports, central shopping areas, tourist sites, and even within bustling department stores like Shanghai No. 1, where departure‑tax refund transactions soared 338 percent and spending shot up 206 percent year‑on‑year.

Central to the policy’s success is the remarkably low minimum spend threshold—just ¥200 (≈ US $28)—and an elevated maximum refund cap of ¥20,000 (≈ US $2,780), making VAT rebates available on even modest purchases. Tourists are now enjoying tangible savings: for instance, a foreigner buying a Huawei Mate XT smartphone in‑store may receive roughly ¥2,500 in tax refunds—enough to cover a high‑speed train trip from Beijing to Shanghai and a night at a good hotel.

Visa‑free transit has also played a critical role. Since expanding the scheme, China has welcomed over 9.2 million foreign entries through its ports during Q1 2025—a 40 percent increase—with 71.3 percent of those eligible travelers using visa‑free transit. During the May Day holiday alone, tourist arrivals surged, with visa‑free entries climbing 73 percent over the previous year . By smoothing access and slashing bureaucratic hurdles, China has made itself far more enticing as a stopover and shopping destination.

Certain regions are reaping particular rewards. Jiangsu Province, for instance, saw inbound visits rise nearly 38 percent in the first five months of 2025. In Yiwu—an iconic export hub—the travel‑and‑order model, combining sightseeing with bulk purchasing, drew about 250,000 foreign visitors between January and May, an 18.6 percent increase year‑on‑year. Ancient water towns like Tongli experienced an 85 percent jump in inbound tour groups compared to 2024. The uplift in cultural tourism is clear: iconic heritage sites—from the Terracotta Warriors to the Forbidden City—are drawing more travelers eager to pair cultural discovery with buying local goods.

The strategy is yielding tangible benefits beyond tourism. Analysts at EY China and the Beijing National Accounting Institute have noted that these policy adjustments tap into previously untapped consumer potential and reflect China’s proactive stance toward opening its market. China is now projected to become the world’s largest inbound tourism market by 2025, and improved shopping incentives bolster both inbound commerce and broader economic resilience.

These developments also align with a broader vision to spotlight “Made in China” quality. Brands like DJI are benefiting: at the Beijing China World Mall flagship, sales of refund‑eligible products rose 77 percent month‑on‑month. For visitors, it adds up to a richer, more satisfying shopping experience—while for China, it fosters brand recognition, encourages domestic innovation, and strengthens market vitality .

China’s approach showcases a well‑orchestrated strategy where visa policy liberalization, enhanced tax‑refund procedures, tourism infrastructure, and retail expansion all play complementary roles. It’s a blueprint not only for boosting tourist numbers but for converting visits into broader economic value. With such momentum, Chinese destinations are rapidly emerging as global shopping and cultural hubs—where efficiency meets heritage, and convenience enhances discovery.

If the current trends hold, China’s tourism boom stands to become a lasting engine of growth. By transforming tourist spending into a lever for economic diversification, the country is writing a new chapter in its opening‑up story—one where culture, commerce, and connectivity converge seamlessly.

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