China's inbound tourism sector has recorded a staggering 173% year-on-year increase during this year's May Day holiday, fueled by streamlined tax refund policies and visa facilitation measures. Data from Trip.com Group highlights the revival of international travel demand, with Shanghai emerging as a key beneficiary of these reforms.
Shanghai has optimized its tax refund infrastructure, enabling foreign visitors to claim refunds immediately at select stores rather than waiting for airport processing. The city reported 86,000 tax refund forms issued to tourists in Q1 2024, generating 2.37 billion yuan ($329 million) in refunded sales – an 86.6% annual growth.
China’s policy overhaul includes an expanded visa-free entry program and a reduced minimum purchase threshold of 200 yuan ($27.8) for tax refund eligibility. These measures have simplified payment processes for international visitors, who increasingly buy electronics, apparel, and traditional handicrafts.
Liu Min of the Shanghai Municipal Commission of Commerce noted, 'Shanghai remains a leader in tax-refund sales, with 284 stores now offering instant refunds.' The city welcomed 1.74 million international tourists in Q1, up 37.1% year-on-year, signaling a robust recovery in post-pandemic travel.
