- In the first quarter of 2024, foreigners made 13.1 million entry/exits to China. This number represents a 305 percent jump from 2023Q1, when China’s borders first opened after COVID-19, and is only 8 percent short of pre-pandemic 2019Q1 levels.
- In December 2023, China announced unilateral visa exemption to 5 European countries (France, Germany, Italy, Netherlands, Spain). In March 2024, China further extended the unilateral exemption to 6 more European countries (Switzerland, Ireland, Hungary, Austria, Belgium, Luxembourg).
- The move is part of the Chinese government’s initiatives to resurrect the travel industry, which was among the worst-hit sectors during the strict COVID lockdown periods. Apart from visa exemptions, the government has also announced plans to simplify digital payment for non-Chinese citizens, which has been a major pain point for international visitors.
- The visa exemptions seem to have contributed to the recovery, as 23 percent of visitors entering China at Shanghai in 2024Q1 were from the newly announced unilateral visa exemption countries. China also has a 144-hour transit visa scheme, where travelers can spend 7 days in designated cities, including Shanghai, if they have a connecting flight ticket. Counting the transit visas, more than 78 percent of visitors to Shanghai had come without a visa.
- It remains to be seen whether the initial signs of recovery will last in the second quarter. Positive Q2 data would be a crucial milestone as peak travel season starts in Summer.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.