China’s tourism sector is on track to surpass the United States as the world’s largest market, driven by expanding visa-free entry policies, infrastructure investments, and growing domestic travel demand, according to a recent report by the World Travel and Tourism Council (WTTC).
The WTTC’s 2026 Economic Impact Research report, released on June 3, valued China’s travel industry at US$1.8 trillion last year, with projections reaching US$3.5 trillion by 2036. In comparison, the United States’ tourism economy stood at US$2.63 trillion in 2025. The council noted accelerated growth in China’s international arrivals, with over 68 million visitors in 2025—a 15.5% increase from 2024. International visitor spending also rose 10.5% to US$135 billion, outpacing the global average growth rate of 3.2%. The WTTC expects spending by overseas tourists to climb further to US$138.4 billion this year, with continued expansion averaging 4.6% annually through 2036.
Several factors underpin this expansion. Beijing's broadened visa-free travel program, initiated in 2023 and covering citizens from more than 50 countries, has significantly boosted inbound tourism, according to Sienna Parulis-Cook, director of travel marketing firm Dragon Trail International. Additionally, investments in commercial aviation and high-speed rail have improved connectivity between major cities and secondary destinations, fostering a more balanced distribution of domestic tourism activity.
China’s transport infrastructure has grown substantially in recent years. The country now operates over 260 commercial airports, up from 218 a decade ago, and features an extensive high-speed rail network with more than 5,500 passenger stations, established within the past two decades. The adoption of automated payment systems is also enhancing convenience for travelers nationwide.
Despite broader economic challenges, Chinese domestic tourism continues to expand robustly. The travel agency China Travel Guide reported 6.52 billion domestic trips last year, a 16.2% rise from 2024. Subramania Bhatt, CEO of China Trading Desk, highlighted the significance of the domestic market, citing the combined impact of modern transport infrastructure, digital payment platforms, and a sophisticated travel ecosystem in supporting sustained growth.
Consumer preferences are evolving as well. Research by Dragon Trail International indicates that more than half of Chinese travelers plan to increase spending on activities and experiences, with 49% anticipating higher food budgets and 39% intending to allocate more funds toward shopping. Younger travelers, aged 18 to 44, are the most likely to boost their travel-related expenditures. Bhatt noted that even cautious consumers maintain travel habits by adjusting preferences, such as opting for short-haul trips or mid-range accommodation rather than long-haul journeys or premium hotels, underscoring travel’s entrenched role in lifestyle choices.
With these trends underway, the WTTC concluded that China’s travel and tourism sector is positioned to become the world’s leading economy in the coming years if current growth patterns persist.