Inbound Tourism Accelerates as China’s Travel Service Exports Jump Nearly 70% in H1

date
05/08/2025
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GMT Eight
China’s travel service exports surged by 68.7% in the first half of 2025, driving total service trade to RMB 3.89 trillion, up 8.0% year-on-year. Inbound tourism rebounded strongly, supported by relaxed visa policies and expanded departure tax refund schemes, with visa-free entries rising 53.9%.

The Ministry of Commerce’s Department of Trade in Services reported on Monday that China's service trade recorded stable expansion over the first half of 2025. The combined value of service-related imports and exports reached RMB 3.88726 trillion, representing an 8.0% increase compared to the same period last year. Of this total, service exports rose to RMB 1.6883 trillion, showing a robust growth of 15.0%, while imports climbed 3.2% to RMB 2.19896 trillion.

Knowledge-intensive services remained a vital driver of trade performance. From January to June, total trade in this category amounted to RMB 1.50254 trillion, an increase of 6.0% year-on-year. Notable segments included “other commercial services” at RMB 639.1 billion (up 3.1%) and “telecommunications, computer, and information services” at RMB 529.38 billion (up 12.7%). Export activity within knowledge-intensive services stood at RMB 865.04 billion, increasing by 7.8%, while imports reached RMB 637.5 billion, a 3.6% rise. This generated a surplus of RMB 227.54 billion, exceeding last year’s surplus by RMB 40.92 billion.

Travel services emerged as the most dynamic category, buoyed by a recovery in inbound tourism. The sector’s total trade value hit RMB 1.08029 trillion during the first half of the year, marking a 12.3% increase and establishing travel services as the largest component of overall service trade. Export growth within this segment surged by 68.7%, while import growth was recorded at 5.5%.
China’s broadened visa-free transit policy—now covering 55 countries and extending the allowable stay to 240 hours—has significantly contributed to rising numbers of foreign visitors for both leisure and business. In parallel, enhancements to the departure tax refund mechanism have begun to positively influence inbound consumption.

According to data from the National Immigration Administration, there were 38.053 million entries and exits by foreign nationals in the first six months of the year, up 30.2% year-on-year. Visa-free entries accounted for 13.64 million of those movements, reflecting a sharp 53.9% increase. The State Taxation Administration reported a 94.6% rise in sales eligible for departure tax refunds during the same period.

In April, six central ministries and commissions—including the Ministry of Commerce, Ministry of Finance, and Ministry of Culture and Tourism—issued a circular outlining eight strategic measures to improve the tax refund process and stimulate inbound spending. Since then, local governments have introduced region-specific policies to optimize implementation based on local strengths.
On July 3, six government agencies in Shanghai jointly released the “Shanghai Action Plan for Optimizing the Departure Tax Refund Consumption Environment (2025–2027),” aiming to reinforce the city’s global reputation as a premier shopping and tourism hub.

Separately, the Fujian Provincial Department of Commerce disclosed plans on July 26 to accelerate the expansion of departure tax refund stores throughout the province. The initiative includes engaging retailers offering international brands, popular domestic items, long-standing local specialties, cultural heritage products, souvenirs, regional delicacies, and creative merchandise. The province will also streamline store registration processes to establish a geographically balanced and consumer-accessible refund system.

A Ministry of Commerce representative stated that coordination with relevant authorities will continue to ensure effective implementation of the refined refund policy, providing international travelers with a more convenient experience. Simultaneously, the ministry will support the development of international consumption center cities, promote globally integrated retail ecosystems, improve access to premium goods and services, and cultivate diversified shopping scenarios—all aimed at solidifying China’s attractiveness as a high-profile destination for global consumer spending.