Xinjiang’s Tax Refund Policy Drives Record Tourism Growth, Increasing International Spending

Published on December 1, 2025

The Uygur Autonomous Region of Xinjiang, China, is rich in culture and history, and, during the first ten months of 2025, registered a 26-fold increase in the tax refund activity for overseas tourists. The tax refund activity showcases the region’s blooming reputation as a travel destination, along with the recent changes in tax refunding policies meant to stimulate international tourism.

Record-Breaking Tax Refunds for Overseas Tourists

The value of tourist tax refunds at Urumqi Tianshan International Airport, Xinjiang’s main international gateway, surpassed 8 million yuan (approximately 1.13 million USD) in 2025’s first ten months. This is a 26-fold year-on-year increase, signaling a substantial rise in international visitor spending and an increase in inbound tourism to the region. The rise in tax refund activity not only reflects the success of Xinjiang’s tourism industry but also signals the impact of new policies designed to facilitate international travel and spending.

The tax refunds offered to overseas tourists have become a significant draw, especially for shoppers looking to take advantage of the lower prices after receiving their tax refunds on items purchased in the region. These tax refunds cover a wide range of products, from luxury goods to local crafts, making Xinjiang an increasingly attractive destination for both cultural enthusiasts and shoppers alike.

Xinjiang’s Rising Appeal as a Cultural and Natural Destination

Known for its stunning landscapes and rich cultural heritage, Xinjiang has long been a key destination for travelers seeking unique experiences in China. The region is renowned for its diverse natural beauty, from the towering Tianshan Mountains to the vast Taklamakan Desert, as well as its historic Silk Road sites and vibrant cultural heritage.

In the first ten months of 2025, Xinjiang received 2.12 million inbound visitors, marking a 6.06 percent increase compared to the previous year. This rise in tourism is indicative of the region’s increasing global appeal. As more tourists discover Xinjiang’s unique offerings—whether it’s exploring the ancient city of Kashgar, visiting the iconic Kanas Lake, or experiencing the region’s diverse ethnic cultures—tourism is becoming an increasingly important economic driver.

Optimizing Tax Refund Policies to Attract International Visitors

In response to the growing demand for cross-border tourism, China introduced a series of reforms in April 2025 aimed at making the tax refund process more accessible to international visitors. These measures included lowering the minimum purchase threshold for tax refunds, streamlining the refund process, and expanding service channels for tourists. These changes have made it easier for tourists to enjoy the benefits of tax refunds, thus increasing the attractiveness of Xinjiang as a shopping and cultural destination.

At Urumqi Tianshan International Airport, the tax refund process has been further optimized with multilingual signs and information screens in six languages, guiding travelers through the procedure. This attention to customer service has been crucial in improving the overall tourist experience, especially for international travelers who may be unfamiliar with the process.

Convenience and Quick Processing Boost Visitor Satisfaction

Azamat Yernar, a tourist from Kazakhstan, shared his experience at the airport, highlighting the convenience of the tax refund process. Yernar purchased Atlas silk clothing and local handicrafts at the airport and was impressed with how quickly he could process his tax refund. “These products are very unique, and the prices are even better after the tax refund. The tax refund process here is very convenient—it took only two minutes from submitting the documents to customs verification,” he said.

This quick and efficient service has contributed to the growing satisfaction among tourists, who are now more likely to consider Xinjiang a convenient and attractive destination for shopping, cultural experiences, and sightseeing. The emphasis on ease of access to tax refunds has further encouraged international visitors to explore the region, leading to a significant boost in tourism-related spending.

Expanding Tax-Refund Categories to Boost Tourism Spending

Xinjiang has also expanded the range of products eligible for tax refunds, offering refunds on a variety of goods, including luxury items, cultural products, textiles, and local foods. This wide range of eligible products ensures that tourists from diverse backgrounds—whether interested in high-end shopping or local handicrafts—can take advantage of the tax refund system.

Zhang Weijie, deputy director of customs at Urumqi Tianshan International Airport, explained, “We will enrich tax-refund product varieties with Xinjiang characteristics and enhance service convenience for travelers.” This expansion of eligible products is expected to drive even greater tourism spending, particularly from international visitors keen on purchasing unique, high-quality goods that reflect Xinjiang’s culture and heritage.

The Positive Impact on Local Economies and Businesses

The surge in tourist tax refunds is not only benefiting the region’s tourism sector but also helping to boost local businesses. As international tourists flock to Xinjiang, the increased spending has provided a much-needed boost to local retailers, artisans, and hospitality businesses. The introduction of tax refunds has created a favorable environment for cross-border shopping, further encouraging international visitors to engage with local markets and cultural offerings.

Additionally, the growing popularity of Xinjiang as a tourist destination has led to increased interest from international airlines and travel agencies, boosting the region’s connectivity and making it even more accessible to travelers worldwide.

Xinjiang’s Vision for Sustainable Growth in Tourism

Looking ahead, Xinjiang’s tourism industry is positioning itself for continued growth and development. The successful implementation of the tax refund policy is just one part of the region’s broader strategy to enhance its appeal as a cultural and nature-based tourism destination. Sustainable growth will be key to ensuring that tourism continues to benefit both the local economy and the environment.

As more travelers discover the unique offerings of Xinjiang, the region is likely to see further investment in infrastructure, eco-tourism, and cultural preservation. The region’s diverse ethnic communities, rich history, and natural beauty make it an ideal location for sustainable tourism that fosters long-term economic growth and environmental conservation.

The Future of Xinjiang’s Tourism Industry

The success of the tax refund system, combined with the region’s rich cultural and natural offerings, will continue to draw tourists seeking unique experiences in one of China’s most diverse and vibrant regions. While travel to and from the country has restrictions, the Xinjiang region will continue to strengthen its tourism framework and promote the region’s China cultural and historical tourism resources and offerings. Hence we forecast a sustained growth for the tourism branches for the Xinjiang tourism region. This growth will be related to increased international visitors and will multifactorial impact diversified economic development of the region.