As of Friday, China has opened its doors wider by allowing citizens from nine more nations to enter the country without requiring a visa. This extension includes ordinary passport holders from eight European countries—Slovakia, Norway, Finland, Denmark, Iceland, Andorra, Monaco, and Liechtenstein—and South Korea. Visitors from these countries can now stay in China for up to 15 days for either business or leisure without the hassles of visa applications. This new policy is set to remain in place until December 31, 2025, reflecting China’s ongoing strategy to revitalize its tourism sector.
The inclusion of South Korea in this visa exemption program is particularly significant. Prior to the pandemic, South Korea was a primary source of tourism for China, with approximately 4.3 million of its citizens traveling to the mainland in 2019. However, that number dropped drastically, with only about 1.3 million South Koreans visiting in 2023, according to Korea’s Ministry of Foreign Affairs. By reinstating easy access for South Koreans, China hopes to rekindle travel enthusiasm and recover lost tourism revenues.
The announcement of this policy change had an immediate positive impact on the stock market, particularly among travel companies. For instance, shares of Trip.com surged by more than 5%, while low-cost carrier Jin Air experienced a nearly 4% increase. Such market responses indicate investor confidence in the potential for increased tourism fueled by the expanded visa-free program. This development is part of a broader initiative by the Chinese government to stabilize and invigorate its tourism industry, which has yet to return to its pre-pandemic vitality.
China’s tourism industry faced significant challenges during the pandemic, as evidenced by the stark difference in traveler numbers when comparing 2019 and 2023. In 2019, the country welcomed about 49.1 million international tourists, while only around 17.25 million foreigners had arrived as of July 2023. To counteract this decline, China’s visa exemption strategy appears to be yielding results. A recent report by Xinhua indicated that in the third quarter of 2024, the number of foreigners arriving in China had reached 8.2 million, marking a remarkable 49% increase from the previous year. Notably, around 4.9 million of these visitors took advantage of the newly relaxed visa requirements.
To further enhance the experience of international travelers, Chinese officials are also making efforts to address common concerns, particularly regarding payment methods. Reports suggest that major tourist attractions will now facilitate transactions for foreign visitors by accepting international credit cards and cash. Furthermore, Chinese airlines are responding to the increasing demand for travel by ramping up flight services to Europe, compensating for previous service cancellations due to low demand and logistical constraints stemming from Russian airspace issues.
China’s recent visa-free initiative is a strategic move to reinvigorate its tourism influx, particularly from essential markets like South Korea and various European nations. By easing entry restrictions and improving the travel experience, China aims not only to recover but also to thrive in the competitive global tourism landscape.