More than 2.2 million inbound foreign visitors came to Shanghai in the first half of 2024, up 191.5 percent year-on-year, according to the Shanghai Municipal Bureau of Statistics.

Inbound foreign visitors refer to short-term visitors to Shanghai who come for purposes such as sightseeing, travelling, visiting family and friends, recuperating from illness, attending conferences, or engaging in economic, technological, cultural, educational, sports, or religious activities.

This category does not include foreign experts and international students who will stay in Shanghai for more than one year. The data encompass foreign visitors entering through Shanghai's ports, as well as those arriving in Shanghai via other ports in China.

More diversified source countries

Some visitors took advantage of China's 144-hour visa-free transit policy and joined the free half-day layover tour of Shanghai provided by China's major travel agency, Trip.com, which was launched in April.

Over the past three months, the free half-day tour packages have served more than 500 foreign visitors, most of whom were visiting China for the first time, according to Robin, a Trip.com guide.

Zhou Weihong, deputy general manager of Spring Tour, a travel company in Shanghai, noted that this summer, there has been a significant increase in the diversity of source countries of foreign visitors, as well as longer stays. The orders for inbound tours this summer vacation have surpassed the levels of the same period in 2019, Zhou said.

In the past, most foreign tourists visiting Shanghai came from neighboring countries. However, this year, there has been a notable increase in tourists from European and American countries such as Sweden and the United States. Additionally, tourists from countries like Brazil, Mexico, and Colombia are now choosing to travel to China.

Notably, prior to 2019, foreign tourists visiting Shanghai typically stayed for an average of 1-2 nights, but this year, their stays have extended to 2-4 nights, according to Zhou.

As inbound tourism recovers, there is a shortage of foreign language tour guides in Shanghai, especially those proficient in less commonly spoken languages. Zhou said that Spring Tour is actively working to address this shortage as the inbound tourism sector recovers.

Recovery of business travelers

Executives from the Hoffmann Group visit Shanghai for business. [Photo provided by the Hoffmann Group]

In addition to tourism, business travel is also on the rise.

US-based agricultural conglomerate Cargill Inc brought three senior executives - Chief Technology Officer Florian Schattenmann, Global Head of Engineering and Data Science Steve Marshall, and President of Food Solutions Asia Pacific John Fering - to Shanghai to inaugurate an upgraded innovation and research and development center on June 7.

Executives from Hoffmann Group, an industrial tool systems expert from Europe, have also returned to Shanghai. Hoffmann Quality Tools Trading (Shanghai) Co. Ltd. was established in Shanghai in 2009.

"Before 2020, our German colleagues traveled to China on business trips every month, with board-level executives visiting at least twice a year. Since the end of 2023, German colleagues have been traveling to China about once a quarter, and the frequency of board-level executive trips has returned to about once a year," said Shane Lee, General Manager of Hoffmann China.

This recovery is partly due to China's unilateral visa-free policy for Germany, while German executives also have a desire to understand the Chinese market post-pandemic, said Lee.

New Zealand dairy company Theland has also seen increased trips to China by its senior executives since the beginning of this year.

Reasons behind surge

This surge in inbound visitors can be attributed to visa-free policies and the resumption of international flights, according to Jiemian.com, an online news outlet.

Meanwhile, the Shanghai government has implemented measures to facilitate payments and other needs for foreigners in Shanghai and has organized numerous world-class events and exhibitions to attract foreign visitors.

"In recent years, various levels of the Shanghai government have introduced a series of policy measures aimed at facilitating the entry, work, and living conditions for foreigners in Shanghai, creating favorable conditions for them to come to the city," said Yu Ling with Ernst & Young Greater China.

For instance, Shanghai has incorporated options for foreign passports and permanent residence permits into the online reservation and ticketing systems for its A-level scenic spots and first-class museums.

In April, Shanghai announced that it would host 70 world-class cultural, sports, tourism, commercial, and exhibition events. These high-profile events, Yu said, will help increase the appeal of Shanghai. He suggested that the city should continue to support such large-scale events and consider further enriching its tourism offerings, such as by developing inbound medical tourism.

Attracting foreign investment

In terms of attracting foreign investment, Shanghai has created a more favorable business environment for foreign enterprises through such measures as offering tax incentives, simplifying approval processes, and strengthening intellectual property protection, Yu said.

These measures have attracted a large number of foreign business personnel to visit Shanghai for inspections and business negotiations, thereby increasing the number of inbound visitors, Yu added.

To further attract foreign investment, Yu suggested that Shanghai promptly communicate policy details to boost investor confidence and build a more open market environment.

"For enterprises, profit and market opportunities are their primary concerns. Therefore, accelerating the implementation of opening-up policies and giving foreign enterprises a strong boost of confidence is of utmost importance," Yu said.

Source: jiemian.com