China must ease digital barriers to attract more foreign tourists

By Juliana Liu

 

China is stepping up efforts to court international tourists as part of a broader push to boost domestic spending. But for travelers to take advantage, Beijing still has more work to do.

 

Last month, nine government bodies led by the Commerce Ministry introduced new policies to woo overseas visitors. They promised to expand the number of countries granted unilateral visa-free entry beyond the 50 it already allows, as well as encourage ubiquitous online platforms, including ride-hailing apps and food-delivery firms, to offer more language options for users unable to read Chinese.

 

Officials are right to address the digital divide. It’s one of the biggest challenges for vacationers navigating a completely different online landscape. And it’s not just a language issue. While the digital ecosystem is highly advanced and serves hundreds of millions, it was built for people who have local identification, mobile phone numbers, and bank accounts. Something as simple as buying a train ticket may not be possible for tourists without standing in line, creating unnecessary stress for holidaymakers otherwise ready to dive into fresh experiences. 

 

 

China is also a near-cashless society where most people can go about their daily lives with only their phones for payment. This is not the norm in most countries. Go to Europe or the US and you can whip out your credit card or hand over cash. But in China, even visitors who have dutifully linked their credit cards to the most popular payment platforms will need help when something goes wrong.

 

The government is aware of the issues. In 2023, under pressure for years from regulators wanting to bolster the economy, Alipay and Wechat Pay — the two biggest digital wallet providers — allowed visitors to link their international Visa or Mastercard accounts. In theory, they should have been able to pay like locals, but friction remained. That’s why, in a separate announcement, 11 agencies including the cyberspace regulator laid out a two-year framework for removing these obstacles.

 

That would be impossible without the backing of Ant Group Co. and Tencent Holdings Ltd., the two companies behind Alipay and WeChat Pay, respectively. They need to up their game in terms of support. Some solutions could include physical kiosks at airports staffed by multi-lingual staff who can help travelers make trial payments and 24-hour hotlines to troubleshoot when the apps get glitchy.

 

A reliable fix could help lift foreign arrivals above pre-pandemic levels. After re-opening its borders in January 2023 following a three-year shutdown, Beijing began to loosen visa rules to revive business and tourism. But although the total number of border crossings — including trips made by Chinese nationals — hit a record high last year, international arrivals have not reached their 2019 peak.

 

That’s not surprising. Appealing holiday destinations should project a sense of openness, warmth, and accessibility. That was hardly China’s image during the pandemic, when it was the subject of many unfavorable headlines. An ongoing geopolitical tussle with the US hasn’t been helping either.

 

Weighed down by an economic slump, it was smart of officials to reverse a long-standing approach of granting visa-free access largely to countries that offered the same deal to China. The new open-door policy didn’t work immediately, but last year, the number of visitors who took advantage of the scheme rose by 50%, according to official data, giving a boost to tourism revenue. 

 

China should continue to add countries to the list if it’s serious about becoming a compelling place to visit. Having already relaxed the rules for Australia, Canada, and the UK — Western countries with which it has sparred diplomatically — Beijing should consider waiving visas for Americans as a gesture of goodwill when President Xi Jinping and US President Donald Trump meet in May. 

 

To become a more attractive destination, access must go beyond permission to enter. With Chinese digital life so divorced from the rest of the world, travelers must feel confident about doing basic things like booking taxis or paying for meals. Beijing has said it’s committed to making the experience as hassle free as possible. Now it has to deliver.   (Disclaimer: This is a Bloomberg Opinion piece, and these are the personal opinions of the writer. They do not reflect the views of www.business-standard.com or the Business Standard newspaper)