Overseas tourists surge by 40%! "Inbound tourism to China" is booming and may drive the renminbi to further strengthen.

China’s strong inbound tourism recovery is bringing new upward pressure to the renminbi exchange rate. On February 2, according to media reports, major tourist destinations such as Beijing, Jiangsu, and Guangdong saw a surge of about 40% in overseas visitors last year, leading to double-digit growth in tourism-related capital inflows. As policymakers pledge to attract more visitors, this trend is expected to further strengthen the renminbi. Inbound tourists exchange foreign currency for renminbi to pay for hotels, dining, and shopping, directly driving demand for the renminbi. According to data from the State Administration of Foreign Exchange, inbound tourism brought a record $38.2 billion in capital inflow to China in the first three quarters of 2025. Thanks to a weaker U.S. dollar, a record Chinese trade surplus, and renewed interest in domestic stock markets, the renminbi has climbed to its strongest level in more than two years. Market participants point out that inbound tourism may become even more robust in the future, which could further strengthen the renminbi. The People’s Bank of China has acted to slow the pace of appreciation. Since late November last year, the central bank has regularly set the daily midpoint lower than market expectations to manage market sentiment and avoid excessive volatility. Major Tourism Cities See Sharp Income Surge The popularity of inbound tourism is especially apparent in major destinations. Data shows that foreign tourist spending in Beijing reached a record 50.6 billion yuan ($7.3 billion) in 2025, up 45% year-on-year. Guangdong Province, bordering Hong Kong, received over 90 million visitors, with spending exceeding 200 billion yuan, a surge of 54% compared to 2024. These tourism expenditures are recorded as service trade in China’s current account, directly translating into demand for the renminbi. International visitors must exchange foreign currency for renminbi while traveling within China, creating buying pressure in the forex market. China’s Minister of Commerce Wang Wentao wrote in January that China should build a “Shopping in China” brand and further optimize the departure tax rebate policy to encourage inbound tourist spending. In the past two years, China has included dozens of countries such as Australia, Japan, and South Korea on its unilateral visa-free list. With the U.S. dollar broadly weaker, China’s trade surplus at a record high, and domestic stock inflows intensifying, the renminbi has climbed to a two-year high, with capital inflows from inbound tourism further amplifying the trend. Xia Le, Chief Asia Economist at BBVA Hong Kong, said: “Inbound tourism may become even more robust in the future, which could further strengthen the renminbi.” Xiaojia Zhi, economist at Crédit Agricole, said inbound tourism will continue to grow, and improved investor sentiment towards Chinese assets will also drive demand for business travel. He added: “The People’s Bank of China may continue to stress that any appreciation will be managed to prevent excessive renminbi appreciation expectations and market volatility.” Looking ahead, China’s tourism industry has huge growth potential. According to hospitalitynet.org citing data from the World Travel & Tourism Council, China’s tourism industry is expected to grow by 7% annually over the next decade, contributing $3.8 trillion to GDP by 2035, accounting for 14% of the economy. The report says that by 2031, China is expected to surpass the United States as the world’s largest tourism market. Risk warning and disclaimer Markets are risky; investment requires caution. This article does not constitute personal investment advice, nor does it consider the special investment objectives, financial situation, or needs of any particular user. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their circumstances. Investing based on this article is at your own risk.