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China’s inbound tourism boom, powered by visa-free access and policy reforms, is driving a surge in global hotel investments across key urban and leisure markets.

China’s inbound tourism surge is sparking a fresh wave of foreign hotel investments, powered by the country’s relaxed visa rules, supportive government policies, and rising global appetite for high-end hospitality.

China is witnessing a rapid resurgence in inbound tourism, catalyzing the expansion of global hotel brands across its major travel hubs. This momentum, fueled by relaxed entry requirements, streamlined visa policies, and renewed international enthusiasm, signals a significant transformation in the nation’s post-pandemic travel landscape and broader economic revitalization efforts.

Recent figures from the Ministry of Foreign Affairs reveal that China welcomed over 9 million international visitors in the first quarter of 2025—a remarkable increase of more than 40% compared to the same period last year. This sharp growth is closely tied to ambitious government-led tourism reforms designed to elevate China’s standing as a world-class travel destination.

Global Hotel Chains Deepen Commitment to China Amid Inbound Tourism Revival

International hotel groups are making strategic expansions across China, aligning with the sharp rise in inbound tourism. Capitalizing on policy shifts and traveler demand, these global brands are not only reaffirming their presence but also recalibrating their growth strategies to meet evolving guest expectations.

Hilton has emerged as a leading player, operating 840 properties across Greater China as of Q1 2025. The brand is aggressively growing through strong alliances with domestic partners, reflecting its long-term confidence in the market. Notably, inbound bookings during recent public holidays have already surpassed 2019 figures—an indicator of the swift recovery and rising appeal of China among international travelers.

Hyatt’s luxury label Alila is also contributing to the country’s tourism momentum with the launch of Alila Dong’ao Island Zhuhai, a dramatic cliffside resort in Guangdong Province that opened in April. The resort reported nearly 90% occupancy during the May Day and Dragon Boat Festival periods, driven by high-spending international guests eager for upscale coastal escapes. Despite intensified competition in the region, the resort’s strong performance and premium average daily rate (ADR) underscore a growing preference for elevated and experiential stays.

This shift reflects more than just post-pandemic rebound; it marks a fundamental realignment in foreign hotel investment strategies. Global chains are now channeling efforts into inbound-focused properties in both major cities and emerging leisure destinations. Key themes shaping these expansions include elevated brand positioning, deeper cultural alignment, and targeted appeal to high-end international travelers.

Reforms Driving Inbound Expansion

The surge in inbound travel is closely tied to far-reaching government reforms aimed at simplifying entry and stimulating tourism-related investment. Beginning in 2024 and continuing through mid-2025, China launched an ambitious visa-free entry program, rapidly expanding access to travelers from around the world.

As of June 2025, a total of 47 countries benefit from China’s unilateral visa exemption policy. This list now covers key markets across Europe, Asia, and the Middle East, and has been extended to include countries in Latin America and the Caribbean. These measures are designed to streamline travel and position China as a more accessible and welcoming destination for a global audience.

Together, these policy reforms and international brand expansions are laying the groundwork for a more globally integrated Chinese tourism sector—one that is not only rebounding but rapidly evolving to meet the demands of a new era in travel.

Global Hotel Chains Accelerate Expansion Amid China’s Inbound Tourism Surge

International hotel brands are strategically scaling up their operations in China, seizing the momentum created by a sharp rise in inbound travel. With the resurgence of international arrivals and strong policy support, foreign hotel groups are reinforcing their footprint across both urban centers and emerging leisure destinations.

One prominent example is a leading global hospitality group that now operates over 800 properties across Greater China as of the first quarter of 2025. The brand is rapidly expanding through collaborative ventures with domestic stakeholders. Recent holiday periods have already seen inbound stays outpace pre-pandemic benchmarks, signaling renewed global interest in traveling to China and reaffirming confidence in the local market.

In the luxury segment, new openings are aligning closely with demand from high-end international travelers. A major global hotel company recently launched a luxury resort on Dong’ao Island in Guangdong Province, situated dramatically along the coast. The resort experienced near-capacity bookings—approximately 90% occupancy—during peak holiday periods such as May Day and the Dragon Boat Festival. The influx of affluent foreign guests reflects a broader trend: rising demand for unique, premium experiences in culturally immersive settings. High occupancy and strong average daily rates (ADR) also point to the resilience of upscale hospitality offerings despite regional competition.

These moves by global operators illustrate more than a simple recovery. They represent a recalibrated investment strategy that places inbound tourism at the core. International hotel groups are now focusing their development plans on high-demand corridors—urban business centers and coastal getaways alike—with tailored offerings that prioritize brand distinction, cultural resonance, and elevated service standards.

Government Reforms Catalyzing Travel Growth

China’s rapid rebound in inbound tourism is being driven in large part by comprehensive policy reforms introduced over the past two years. Beginning in 2024, authorities implemented a sweeping expansion of visa-free travel policies designed to reduce friction for international visitors and stimulate tourism-related business.

As of June 2025, China’s unilateral visa exemption initiative has grown to include travelers from 47 nations across diverse regions, including Europe, Asia, the Middle East, and more recently, Latin America and the Caribbean. These streamlined entry regulations have significantly broadened access to the Chinese market, removing one of the key barriers to international travel and encouraging a surge in tourist arrivals.

This shift also encompasses broader government efforts to position China as a premier global destination. From infrastructure improvements and digital visa platforms to incentives for hospitality development and cross-border travel campaigns, authorities are actively reshaping the tourism ecosystem to appeal to a wider international audience.

Together, these strategic expansions by international hotel groups and the sweeping policy reforms underpinning them are redefining the landscape of inbound travel to China. The convergence of private investment and public policy is laying the foundation for a more globally integrated and experience-driven tourism industry, positioning China at the forefront of the next era in international hospitality.

China is actively transforming its inbound travel ecosystem through a series of innovative policy enhancements aimed at making the country more accessible and attractive to international visitors. These forward-looking reforms are not only streamlining entry procedures but also fostering tourism growth in regions well beyond the traditional Tier-1 cities.

Among the most impactful changes is the extension of transit visa stays to a generous 10-day period, now available across 60 major airports in 24 provinces. This longer window provides transit passengers ample opportunity to explore local attractions and participate in tourism experiences, even on short stays.

In addition, the country has significantly eased entry requirements for both individual and group travelers. These measures, designed to remove bureaucratic hurdles, have already begun to facilitate smoother arrivals and greater volumes of inbound traffic from diverse global markets.

To further stimulate spending, China has adjusted its tax rebate policies. The threshold for claiming VAT refunds has been reduced from 500 yuan to just 200 yuan, making the incentive more accessible and encouraging increased shopping by international tourists. This change especially benefits travelers in the retail and luxury segments, providing an extra boost to domestic consumption.

Another critical advancement lies in payment convenience. China has rolled out a major initiative to integrate international digital wallets and streamline card transactions, with backing from the People’s Bank of China and key payment providers. This update allows visitors to use their preferred mobile apps and cards without barriers, dramatically improving the on-ground travel experience.

As a result of these collective reforms, a growing number of second-tier cities such as Zhuhai, Chengdu, and Hangzhou are emerging as hotspots for high-end tourism. With improved access, simplified financial interactions, and tax incentives, these destinations are seeing increased visitor inflows and are becoming viable alternatives to traditional gateway cities like Beijing and Shanghai. The expansion of inbound tourism to these areas is helping to balance national tourism distribution while introducing visitors to China’s rich regional diversity.

Economic Outlook Strengthened by Inbound Tourism Surge

The macroeconomic implications of these tourism reforms are significant. Analysts from Citi forecast that inbound travel could help propel China’s domestic tourism industry to generate 1 trillion yuan in annual revenue by 2026. This growth aligns with the country’s larger economic shift toward a services-driven model, moving away from its traditional manufacturing base.

Inbound tourism is increasingly recognized as a vital pillar for:

• Boosting domestic consumption by driving tourist spending in hospitality, retail, and leisure sectors
• Revitalizing local economies through visitor expenditures and infrastructure demand
• Attracting foreign direct investment, particularly in hotels, restaurants, and transport services
• Enhancing international cultural exchange and reinforcing China’s global image through tourism diplomacy

Supporting this optimistic outlook is recent travel behavior. According to Trip.com, hotel search volumes from international users during the 2025 Dragon Boat Festival more than doubled compared to 2024. This surge points to a sustained rebound and renewed enthusiasm for visiting China.

Adding to this momentum is a wave of foreign business activity. Between January and April 2025, over 18,000 new foreign-invested companies were registered in China, signaling robust international confidence in the country’s market potential. This trend suggests not only growth in tourism but also wider investment in related industries that benefit from increased visitor volumes.

In essence, China’s progressive travel policies, combined with its broader economic pivot toward consumption and services, are fostering a fertile environment for inbound tourism and international hospitality expansion. The country is positioning itself as a top-tier global destination—one that is open, integrated, and ready to welcome the world.

Future Prospects for International Hotel Brands in China

China is rapidly emerging as a prime growth destination for global hotel companies, thanks to a powerful combination of rising international arrivals, proactive government support, and a dynamic, tech-forward hospitality environment. This convergence positions the country as one of the most strategically important markets for international hospitality players.

Hotel groups that adapt quickly to local preferences, invest in digital capabilities, and align their operations with evolving national policies are poised to lead the market. Success in China will increasingly depend on a brand’s ability to integrate cultural relevance with operational excellence and innovation.

Several high-potential investment avenues are shaping the next phase of expansion:

• Premium urban hubs for business and luxury travelers such as Beijing, Shanghai, and Shenzhen continue to offer strong performance potential due to their status as financial centers and major gateways for inbound travel.
• Scenic second-tier destinations including Guilin, Yunnan, and Hainan are gaining traction as international visitors seek more immersive and nature-rich travel experiences beyond the traditional city circuits.
• Cross-border opportunities in wellness tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) are also on the rise, especially in integrated resorts and regions that serve as regional trade and cultural bridges.

As China deepens its integration with the global travel ecosystem, international hotel groups that commit to localized innovation and long-term partnerships are expected to thrive in this evolving and lucrative market.