By 2020, the country is expected to become the world's leading tourist destination.

With more and more visitors to China, credit cards such as Visa are becoming increasingly common.

"From 2006 to 2010, overseas tourists' Visa card spending is expected to soar to US$250 billion on the Chinese mainland," said Li Sheng, vice-president of Visa Information System (Shanghai) Co Ltd.

Last year, overseas tourists spent 239 billion yuan (US$29 billion) on the Chinese mainland, up 13 per cent year-on-year. Of last year's total, 22 billion yuan (US$2.75 billion) was spent using Visa cards. In the first half of 2006, the amount spent using Visa cards reached 11.76 billion yuan (US$1.38), up 4.1 per cent year-on-year.

"The credit card market in China is growing fast mainly because of increased spending," said Li.

Inbound tourists to China are mostly from the Asia-Pacific, Europe and the United States.

According to Li, the 2008 Olympics is expected to bring a 30 per cent increase in the Chinese mainland's foreign exchange income, with the figure reaching US$60 billion.

Shanghai was the most popular destination among mainland cities for Visa International cardholders in 2005, accounting for 22 per cent of total Visa spending. Beijing ranked second, followed by Shenzhen.

But growth in credit card use in small and medium-sized cities is the fastest, with Dongguan in South China's Guangdong Province notching up a 53 per cent year-on-year rise in 2005, while Suzhou and Xiamen in East China witnessed year-on-year increases of 38 per cent and 34 per cent in 2005.

"Foreign tourists are increasingly choosing such small cities as their destinations, as many have already been to the big cities," said Li.

Dongguan is a city known for its modern processing and manufacturing industry. Visa card spending in Dongguan last year was largely business-related, being concentrated on hotels, restaurants, bars and airlines.

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