China’s Duty-Free Sales Skyrocket As Millions Of Foreign Tourists Take Advantage Of New Tax Refund Rules And Visa-Free Travel In 2025

Published on July 11, 2025

China is witnessing a sharp rise in duty-free sales driven by a dramatic increase in inbound tourism, thanks to newly implemented visa-free entry policies and an expanded tax refund program that allows international visitors to claim immediate savings on purchases. This combination of simplified entry and easier access to tax-free goods is reshaping the country’s tourism economy, drawing millions of global travelers back to cities like Shanghai and Beijing, and revitalizing post-pandemic retail activity across the nation.

China has broadened its tax refund program for international travelers, enabling them to reclaim taxes on a wider variety of purchases in an effort to boost inbound tourism.

Several major cities across China have recently recorded a significant rise in foreign tourist spending on tax-exempt goods, signaling the early success of new duty-free regulations aimed at revitalizing tourism-related consumption.

In an effort to stimulate inbound travel, China has implemented a range of reforms making it simpler for international visitors to make duty-free purchases. One of the most notable changes allows travelers to receive immediate tax refunds in retail stores, removing the previous requirement to wait in long airport queues to process their claims.

This enhanced tax refund system is part of a wider national initiative to position the country as a top global travel destination. Among the key strategies has been a fast-tracked visa-free policy expansion, which has already contributed to a substantial increase in international arrivals.

One city reported that, during the first six months of 2025, tax-exempt retail sales to foreign tourists surged by 85% compared to the same period last year. Transactions under the “buy now, refund now” model multiplied dramatically, indicating growing participation in the streamlined process.

The upgraded tax refund initiative, introduced in late April, lowered the minimum spending requirement per purchase from 500 yuan (approximately US$69) to 200 yuan. In addition, the number of approved retail outlets and participating regions where visitors can obtain refunds has significantly expanded.

Elsewhere, monthly sales of duty-free merchandise to international travelers have consistently exceeded 100 million yuan throughout 2025, reflecting strong and sustained interest in tax-free shopping opportunities.

This upswing in sales is being driven not only by tax policy adjustments but also by a marked rise in international visitor numbers. The visa exemption program, now applicable to travelers from 47 countries, allows stays of up to 30 days without the need for a visa—making travel to China more accessible than ever before.

By combining tax incentives with simplified entry procedures, China is rapidly creating a more visitor-friendly environment. These coordinated efforts appear to be laying a solid foundation for long-term growth in inbound tourism, as both shopping and travel appeal expand for global audiences.

Shanghai recorded a significant increase in international arrivals during the first half of 2025, with 4.25 million inbound visitors, representing a 38.5% jump compared to the same period last year. This figure includes travelers from Hong Kong, Macau, and Taiwan, according to data released by local government authorities.

Beijing also experienced strong growth in tourism, welcoming 2.46 million international tourists in the first six months of the year—a sharp year-on-year rise of 48.8%.

These numbers reflect a broader recovery across China’s inbound tourism industry, which had been severely impacted by the COVID-19 pandemic. The strict border controls, limited visa availability, and inadequate access to digital payment platforms during the pandemic had previously contributed to a dramatic drop in foreign visitor arrivals.

In 2023, China saw only 35.5 million foreign tourist entries—just over a third of the figures reported in 2019 before the pandemic began. However, the sector has since rebounded significantly, with current international tourist numbers reaching around 70% to 80% of pre-COVID levels.

Despite this encouraging resurgence, experts believe there is still immense untapped potential within the inbound tourism sector. Compared to major international tourism economies, China’s revenue from foreign travelers remains relatively low. Currently, inbound tourism contributes less than 0.5% to China’s gross domestic product (GDP), whereas countries like the United States generate between 1% and 2% of their GDP from international visitors.

If China were to align its tourism revenue share with that of leading global destinations, the country could unlock an additional economic benefit of 1 to 2 trillion yuan—a substantial boost to national earnings.

In recent years, Chinese authorities have taken active steps to address key obstacles that had previously discouraged international travelers. These include simplifying the visa application process, enhancing traveler access to widely used payment systems, and expanding the scope of visa-free entry programs. These initiatives have contributed to a more welcoming and seamless experience for tourists.

Nonetheless, while progress has been made, many believe further reforms are necessary to fully capitalize on the global demand for travel to China. Continued investment in infrastructure, digital services tailored to international visitors, multilingual support, and broader promotional campaigns are considered essential to sustaining and accelerating inbound tourism growth.

As China continues to emerge as a leading global tourism hub, its ongoing policy upgrades and structural reforms are set to significantly reshape the travel sector, turning it into a more powerful engine of national economic expansion.