Source: Times Weekly       Author: Nanyang

China's 72/144-Hour Transit Visa Policy Boosts "China Travel" Popularity Overseas

According to CCTV News, on June 17, China announced that Australia is now included in the list of countries eligible for visa-free entry. Australian passport holders can enter China for business, tourism, or transit and stay for up to 15 days without a visa. This follows the announcement made on June 13 that New Zealand would also be included in the visa-free policy.

The new policy has expanded the previous 144-hour transit visa to a 15-day stay. In October last year, the National Immigration Administration of China listed Australia among countries eligible for the 72/144-hour visa-free transit policy.

Since June, flight bookings between China and major cities in Australia and New Zealand have increased significantly compared to the same period last year. Data from Tongcheng Travel Platform shows that in the first two weeks of June, flight bookings from Australia to China increased by 1.6 times, and from New Zealand by 1.5 times. Similarly, bookings from Chinese cities to Australia and New Zealand increased by over 90% and 30%, respectively.

Qunar.com reported a 40% increase in searches for flights to Australia after the announcement. Popular tourist spots such as the Great Barrier Reef, Sydney Opera House, and dolphin-watching tours saw a surge in bookings between June 8 and June 12.

Song Ding, a researcher at the CDI, told Times Weekly that the 72/144-hour transit visa policy is a great way to boost both domestic and international tourism, and its effectiveness is already evident.

Surge in Inbound Tourists

Since October 2023, China has implemented the 72/144-hour visa-free transit policy for multiple countries, leading to a significant increase in inbound tourists. Data from the National Immigration Administration shows that in the first quarter of this year, the number of foreigners entering China tripled compared to the same period in 2023. Over 466,000 foreign visas were issued, a 118.8% increase, and 1.988 million foreigners entered visa-free, a 266.1% increase.

Major cities like Beijing, Shanghai, Guangzhou, and Shenzhen are popular with foreign tourists. The Beijing Municipal Bureau of Culture and Tourism reported 469,000 inbound tourists in the first quarter, a 3.1-fold increase. Shanghai's Pudong International Airport saw over 3 million foreign travelers by June 16, a 240% increase from the previous year, with travelers from the US, Japan, and South Korea topping the list.

In Chengdu, data from the Sichuan Exit and Entry Border Inspection Station showed that over 2.25 million people passed through the city's airports in the first five months of this year, a 218% increase. Foreign travelers from Malaysia, Thailand, and Russia were the top three, with an increase in visitors from Germany, France, Italy, and Spain as well.

Impact on Domestic Tourism

The boom in inbound tourism has also spurred the recovery of China's domestic tourism industry. According to Wind data, in the first quarter of this year, 16 out of 21 listed companies in the tourism sector had revenues exceeding 100 million yuan, with 12 companies seeing year-on-year revenue growth.

Zhongxin Tourism, Songcheng Performance, and ST Caesars showed the best growth, with first-quarter revenues increasing by 643.38%, 138.70%, and 109.51%, respectively, reaching 1.025 billion yuan, 560 million yuan, and 161 million yuan. Zhongxin Tourism attributed the growth to a rapid increase in business volume.

Songcheng Performance's first-quarter report indicated that during the Spring Festival Golden Week, key indicators exceeded those of the same period in 2019, with total performance sessions at 251%, total visitors at 207%, and total revenue at 189% of 2019 levels.

Songcheng Performance also reported the highest net profit in the tourism sector for the first quarter, reaching 252 million yuan, a 317.33% increase. Changbai Mountain, Lingnan Holdings, and Zhongxin Tourism also performed well, with net profits exceeding 10 million yuan, increasing by 358.73%, 176.89%, and 174.79%, respectively, compared to 2022.

Several leading institutions are optimistic about the tourism market's recovery. GF Securities Research believes that with the arrival of the Dragon Boat Festival and the summer peak season, the tourism sector will experience a high flow of tourists from June to August. Group travel has recovered significantly compared to last year, and targeted products such as senior tours, study tours, and corporate travel are becoming increasingly popular, further boosting the industry.