Tourism consumption attests to vitality of China's economy

People watch a dragon boat race on the Dazhang River in Minhou County, southeast China's Fujian Province, May 31, 2025. [Photo/Xinhua]

The three-day Dragon Boat Festival break has offered the latest glimpse into the vitality and potential of China's tourism sector, which is emerging as a strategic pillar industry for the world's second-largest economy.

During the holiday from May 31 to June 2, tourism expenditures reached 42.73 billion yuan (5.95 billion U.S. dollars), up 5.9 percent compared with the same holiday last year, official data showed.

As part of its high-quality development strategy, China is leveraging its cultural and tourism industries to boost economic growth, stimulate consumption, create jobs and improve the economic structure by integrating tourism with other industries and creating new demand and business models.

The country has become the biggest domestic tourism market in the world, the largest source of international tourists, and a main destination for international travelers.

Boasting a wealth of natural wonders, historical treasures and cultural heritage sites -- coupled with its massive population -- China's tourism prospects are exceptionally bright. The country's world-class infrastructure, featuring an extensive high-speed rail network and modern tourist facilities, provides the perfect foundation for sustainable growth as China advances toward its goal of becoming a global tourism leader.

As China pivots toward a consumption-driven economy, industries like tourism have become pivotal to this transition. Authorities have prioritized stimulating domestic demand through comprehensive measures, including enhancing service quality, diversifying product offerings, and taking targeted initiatives to unlock spending potential across cultural, tourism, sports and related sectors.

This year has seen the rollout of innovative policies to boost tourism, including consumer incentives like vouchers and discounts, along with age-specific travel services. Meanwhile, new growth points, ranging from winter sports and immersive experiences to senior-friendly travel options, have also gained momentum.

The strong tourism growth momentum is particularly evident in recent years. In 2024, domestic residents made 5.62 billion trips within the country, an increase of 14.8 percent year on year; their total expenditure on domestic travel was 5.8 trillion yuan, increasing by 17.1 percent year on year.

Thanks to its opening-up drive, China's outbound and inbound tourism is also booming. Last year, the number of tourist trips made by foreigners almost doubled to reach 26.94 million. This robust momentum has been sustained this year. The sharp growth of foreign tourists is partly due to the country's unilateral visa-free program that has covered 43 countries. Chinese outbound tourists and international visitors have boosted not only consumption but also cultural exchange and global understanding of China.

With its growing appeal to international visitors and a burgeoning domestic traveler base, tourism is emerging as one of China's most promising industries, contributing significantly to the economy and acting as a catalyst for broader consumer spending.

The World Travel & Tourism Council recognizes China as one of the world's most vibrant tourism markets, noting its strong post-pandemic recovery and long-term growth potential. The organization believes China's sustained investments in infrastructure, digital innovation, and destination development as well as its expanded visa-free access are positioning the country as a world leader in modern, sustainable tourism.

The tourism sector's success story underscores the fundamental resilience of China's economy. As one of the fastest-growing major economies and a crucial engine of global growth, China's economic strength finds clear expression in its thriving tourism industry.