Shanghai accelerates drive to become the "No. 1 city for inbound consumption"

Shanghai is upgrading from "China's first stop for inbound tourism" to the "No. 1 city for inbound consumption."

In 2025, Shanghai received 9.3602 million inbound tourists, up 39.58 percent year on year and exceeding the 2019 peak of 8.97 million. Total inbound consumption reached USD 15 billion, up 35 percent, mainly driven by catering, accommodation, and retail. This contributed to a 4.6 percent increase in total retail sales of consumer goods. Departure tax refund sales rose by about 80 percent year on year.

Rising inbound tourist flows

Visa-free policies have significantly boosted arrivals from neighboring countries. Since the visa-free policy for South Korea took effect in 2024, South Korean tourist numbers have surged. In 2025, Shanghai received 909,100 South Korean visitors, up 103.62 percent year on year.

South Korean tourists have formed stable consumption patterns in Shanghai, covering shopping, dining, entertainment, and cultural experiences. Popular destinations include Nanjing Road, themed retail stores, well-known restaurant brands, and Shanghai Disney Resort's "Zootopia" themed land. Visits have also expanded to supermarkets and local markets. RT-Mart's Pingxingguan Road store now attracts more than 500 South Korean visitors on peak weekends.

Launched on January 9, 2026, the "Shanghai Global Gourmet Festival" features rotating country-themed activities to promote international dining consumption.

International brands are strengthening their presence in core commercial areas. After entering China in September 2025, South Korean fashion platform MUSINSA opened its first international flagship store on Huaihai Road and a multi-brand store on Anfu Road in December. By the end of 2025, the two stores had received 101,455 visitors and generated about 4.82 million yuan in offline sales (around KRW 1 billion). MUSINSA plans to open another store on East Nanjing Road in March and expand to other cities, including Hangzhou, in the first half of the year.

The cruise economy is also supporting inbound flows. MSC Cruises announced that MSC Bellissima would return to Shanghai as a home port on January 27 and adopt a "Shanghai–Busan" dual-home-port model. Under this model, South Korean passengers account for about 25 percent of total volume, improving market balance and travel convenience.

Shanghai ports, including Wusongkou, have introduced "on-board inspection at sea," enabling near-instant clearance for foreign cruise passengers.

In 2025, inbound tourists spent about USD 1,000 per capita in Shanghai, mainly on shopping, accommodation, catering, and transportation, providing strong support for consumption growth.

Improving the consumption environment

Payment facilitation remains a key focus. By the end of 2025, 67,000 merchants and 97,000 terminals in Shanghai supported both domestic and international bank cards. Services such as linking foreign cards to domestic mobile payment systems have reduced reliance on cash.

Shanghai has continued to upgrade departure tax refund services through policy coordination and digital platforms. In 2025, total departure tax refund sales rose by about 80 percent, while "instant refund at purchase" sales increased 15.7 times.

The city now has more than 1,800 tax-refund-eligible stores, up 1.4 times year on year, along with 26 centralized instant-refund service points. Self-service refund equipment has been deployed in major commercial districts and airports, covering both shopping and departure scenarios.

Commercial centers have actively expanded refund services. Bailian Group operates 25 tax-refund stores in Shanghai, 19 of which offer instant refunds. In 2025, its tax refund invoice amount rose by 104.32 percent year on year.

At the No. 1 Department Store on East Nanjing Road, tax refund invoices exceeded 12,000 in 2025, totaling nearly 30 million yuan. At HKRI Taikoo Hui, international brands account for about 90 percent of tax-refund stores, with instant-refund transactions rising sharply in the second half of the year. Since the launch of Louis Vuitton's "Louis" installation in June 2025, the brand has accounted for over 30 percent of refund transactions.

Going forward, Shanghai will advance the Action Plan for Optimizing the Departure Tax Refund Consumption Environment (2025–2027) and further improve inbound consumption services through coordination among commerce, tax, and customs authorities.