Travel Becomes a New Growth Engine for China

China’s tourism industry is evolving from a post-pandemic recovery into a structural pillar of the nation’s economic rebalancing, with total revenue projected to reach RMB 12 trillion by 2030. This growth is fueled by a shift toward experience-driven consumption, supported by policy tailwinds such as extended public holidays and expanded visa-free access for international visitors. Domestic travel remains the primary driver, with 2025 spending reaching RMB 6.3 trillion, while inbound travel is emerging as a second engine, growing 30% to 50% in major cities. Demographic shifts further reinforce this trend as younger consumers prioritize travel and older households utilize substantial savings for improved services. Enhanced by technological integration like smart hotels and virtual reality attractions, tourism’s share of China’s GDP is expected to rise to 6.7% by 2030, signaling a long-term transition toward a consumption-led growth model.