2025-12-05
At the 2025 WTA • Xianghu Dialogue held recently in Hangzhou, China, Mr. Peter Semone, Chair of the Pacific Asia Travel Association, delivered a keynote speech titled "China Tourism 2035: Co-Creating a Sustainable and Smart Future". The following is an excerpt from his address.
For 40 years, China’s tourism development has been a story of scale — building the world’s largest domestic and outbound markets. In domestic tourism, China remains the largest and most dynamic market globally. To manage the challenge of attracting millions of annual visitors to single attractions, the industry has developed a set of effective, large-scale operational strategies. In outbound tourism, the global industry is deeply reliant on China’s massive travel market. In 2024, China’s outbound trips are projected to exceed 146 million, generating an estimated tourism expenditure of approximately 250 billion USD. This provides a powerful engine for global tourism growth. For inbound tourism, significant potential remains. When measured against international benchmarks, China has considerable room to improve key indicators for foreign visitors, such as length of stay, per-capita spending, and overall satisfaction.
The next chapter of China tourism will be a story of depth, quality, and co-creation. By 2035 it is likely that China will secure its position as a World Tourism Powerhouse. This vision extends beyond the industry itself to the construction of a new, integrated ecosystem. Tourism will evolve into an important platform for fostering cooperation, driving innovation, and contributing to shared prosperity.
Vision: Tourism as a Platform for Integration
By 2035, China plans to build a modern tourism economy characterized by intelligence, inclusivity, and sustainability, where technology, culture, environment, and communities are deeply integrated. The industry will transcend traditional boundaries, forming deep connections with sectors such as energy, education, finance, and healthcare. It will move beyond a linear value chain to become a dynamically interconnected ecosystem.
This transformation will be driven by four key forces: (1) Government support policies. (2) Entrepreneurial innovation. (3) Communities preserving cultural authenticity. (4) Technology providing open resources and deep insights. Tourism is evolving from a consumption-based activity into the core of a diversified service economy. It will function as a "system of systems", linking subsystems like transportation, energy, culture, technology, finance, and environment to create collective value. We are confident that by 2035, China will realize this development goal.
Emerging Business Models Reshaping Tourism
Across China, emerging business models are fundamentally redefining how tourism is conducted, managed, and experienced.
Digital Innovation Is Transforming Service Delivery. Leading Chinese digital tourism platforms, including Trip.com, Meituan, and Fliggy, have integrated AI-powered tools for intelligent itinerary planning, dynamic pricing, and digital concierge services. In cities such as Hangzhou and Suzhou, augmented reality (AR) and virtual reality (VR) technologies are being deployed to reconstruct historical architecture and cultural scenes. This allows visitors to "stroll" through ancient capitals while interacting with digital guides in real time. However, the digital transformation of tourism should be approached with dual considerations: On one hand, we must actively adopt digital tools to optimize destination management — for example, by implementing data-driven systems to monitor and assess sustainable development. On the other hand, we should apply technology with measured caution, avoiding its overuse and ensuring that tourism ultimately remains rooted in its human essence: genuine interpersonal engagement and emotional connection.
The Digital Ecosystem Is Rebuilding Trust. Digital payment systems have become a cornerstone of China’s tourism economy. From hotel check-ins and attraction ticketing to real-time translation and transportation services, integrated digital solutions now enable a seamless, end-to-end travel experience. Furthermore, advanced data analytics and digital monitoring systems are reshaping the management of China’s 5A and 4A-rated tourist attractions. At sites like the Palace Museum and Zhangjiajie, smart sensors and heat maps track visitor flows with precision, while AI-powered forecasting tools enhance crowd management and public safety. These innovations underscore China’s growing leadership in smart tourism, paving the way for more connected, personalized, and environmentally conscious travel.
Green Transition Is Reshaping Infrastructure. China is emerging as a global frontrunner in renewable energy adoption and eco-friendly tourism practices. In provinces such as Yunnan and Zhejiang, eco-tourism destinations are piloting solar-powered hotels and electric vehicle shuttle systems. The country’s expansive high-speed rail network provides a low-carbon backbone connecting major tourist hubs. In Hainan, a pioneer in developing zero-emission scenic zones, electric tourism vehicles are being deployed alongside circular economy models. Tourism is becoming a cross-sector living laboratory for China’s green and digital economy. It is not only about attracting visitors — but about co-creating new value systems that balance sustainability, technology, and culture.
Human Dimension: From Experience to Transformation
The real power of tourism lies in human experience. We are seeing a global shift from "sightseeing" to "insight-seeking". Today’s travelers increasingly seek journeys that resonate on a deeper level — engaging both body and soul with a growing focus on personal growth and self-actualization. However, my research indicates that many local tourism offerings still lack sophisticated interactive design and truly immersive experiential elements. This gap in product development substantially limits the appeal and competitiveness of destinations in the inbound tourism market.
In this context, the rise of "slow tourism" represents a meaningful counter-trend. Its essence lies in depth and connection. It is found in the morning bells of Wudang Mountain, the whispering pines of Huangshan, the authentic flavors of a rural kitchen, the sincere smiles of community neighbors, and the timeless wisdom of Daoist philosophy. The future of Chinese tourism, therefore, follows a dual path: it embraces digital innovation while preserving its ancient philosophical roots; it seeks economic growth without losing sight of spiritual enrichment.
It is crucial to reconsider how we measure success. The industry has long relied on tourist arrival numbers — a metric dating back to the 1970s and 80s. Today, forward-thinking bodies like the Pacific Asia Travel Association (PATA) advocate for more meaningful indicators that assess whether tourism development genuinely enhances the quality of life for local communities. This community-centric philosophy is a vivid embodiment of the spirit of co-creation.
China’s Role in the Global Context
By 2035, China is poised to become not only the world’s largest tourism market but also its foremost global tourism innovation testbed. From smart tourist attractions and zero-emission scenic zones to digital co-creation platforms, the "Chinese solution" will offer a sustainable blueprint for the world. This journey will require navigating universal challenges — climate change, digital ethics, and social equity — which transcend national borders and demand unprecedented cross-sector collaboration.
Therefore, as we look toward the "China Tourism 2035" vision, we must recognize the industry as a dual engine: it is both a powerful economic driver and a vital catalyst for peace. It balances innovation with tradition, connects humanity with nature, and integrates local identity with a global perspective. The future of tourism will be built not on competition, but on co-creation. It moves people not just across distances, but toward one another, deepening understanding and fostering greater harmony. Let us work together to co-create this bright future for tourism, contributing to the common well-being of humanity.