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China's Tourism Paradox: Passport Power Lags Despite Visa-Free Access Surge

Synopsis: China's tourism industry ranks 89th on the Henley Passport Power Index despite visa-free access to 85 countries. Major players include Air China, China Eastern Airlines, and China Southern Airlines.
Thursday, August 1, 2024
HPI
Source : ContentFactory

China's tourism industry finds itself in a peculiar position, ranking 89th on the Henley Passport Power Index despite offering its citizens visa-free access to 85 countries. This paradox highlights the complex interplay between international travel policies, economic growth, and global perceptions that shape the tourism landscape in the world's most populous nation.

The Chinese passport, while offering visa-free or visa-on-arrival access to popular destinations like Thailand, the United Arab Emirates, and Saudi Arabia, still requires visas for approximately 148 destinations worldwide. This limitation contributes to its medium-low mobility score on the Henley Passport Power Index. However, the passport's strength is growing, with Chinese citizens now enjoying access to 38% of the world and 26.42% of global GDP without a visa, a significant improvement from previous years.

The National Immigration Administration as been proactive in expanding China's visa-free transit policy. As of July 15, 2024, the 144-hour visa-free transit policy has been extended to 37 ports, including new additions like Zhengzhou aviation port in Henan and several cities in Yunnan Province. This expansion is a clear indication of China's efforts to facilitate international travel and boost its tourism industry.

Despite these improvements, Chinese outbound tourism patterns reveal a strong regional preference. In the first half of 2023, over 40 million travelers from mainland China ventured abroad, with an overwhelming 94% choosing destinations within Asia. Only 3% opted for European destinations, highlighting the need for further diversification in Chinese international travel habits. This trend is further emphasized by the fact that over 70% of the 101 million cross-border trips made by Chinese households in 2023 were to Hong Kong, Macau, and Taiwan.

The Chinese tourism industry is supported by a robust aviation sector. Major players like Air China, the country's flag carrier, China Eastern Airlines, and China Southern Airlines operate extensive domestic and international networks. These airlines, along with key airports such as Beijing Capital International Airport, Shenzhen Bao'an International Airport, and Xi'an Xianyang International Airport, form the backbone of China's air travel infrastructure, facilitating millions of passenger journeys annually.

The economic impact of Chinese tourism is substantial. During the 2024 Spring Festival holiday, approximately 3.6 million overseas trips were recorded between February 10 and February 17. Alipay reported that overseas spending by its users during this period reached 107% of the 2019 level, showing a 140% increase from 2023. These figures underscore the significant purchasing power of Chinese tourists and their potential impact on global tourism economies.

Looking ahead, China's outbound tourism is poised for continued growth, driven by an expanding middle class, increased disposable income, and the gradual easing of travel restrictions. The rise of sports tourism among younger Chinese travelers and the government's initiatives to develop sports-themed tourist destinations further diversify the country's tourism offerings. As Chinese tourists continue to explore global destinations, their impact on the international tourism industry is expected to be substantial, fostering economic growth and cultural exchange worldwide. However, the disparity between China's growing economic clout and its relatively low ranking on the Henley Passport Power Index remains a paradox that the country will need to address to fully realize its tourism potential on the global stage.