与72/144小时过境免签政策相比，此次政策调整最大特点是允许跨区域通行，即过境免签的外国人可以在24个省（区、市）允许停留活动区域内跨省域旅行。On December 17, the National Immigration Administration issued a notice that as of now, the transit visa exemption policy will be fully relaxed and optimized, extending the stay period for transit visa-exempt foreigners in China from the original 72 hours and 144 hours to 240 hours (10 days). Additionally, 21 new ports of entry have been added for transit visa-exempt personnel to enter and exit the country, further expanding the areas allowed for stay activities.
On December 17, the National Immigration Administration announced that from now on, the transit visa-free policy will be fully relaxed and optimized, extending the stay duration for transit visa-free foreigners from the original 72 hours and 144 hours to 240 hours (10 days), while adding 21 ports as entry and exit points for transit visa-free individuals, and further expanding the areas for activities during their stay.
Eligible personnel from 54 countries including Russia, Brazil, the United Kingdom, the USA, and Canada can transit through China to third countries (regions) and avail of visa exemption at any of the 60 open ports across 24 provinces (regions, cities), and stay in the designated areas for no more than 240 hours.
Compared to the 72/144 hour transit visa exemption policy, the most significant feature of this policy adjustment is the allowance for cross-regional travel, meaning that transit visa-exempt foreigners can travel across provincial areas within the permitted stay areas in the 24 provinces (regions, cities).
According to the latest statistics, from January to November 2024, foreign entrants at various ports nationwide reached 29.218 million times, a year-on-year increase of 86.2%; of which, 17.446 million entries were through visa exemption, a year-on-year increase of 123.3%.
The outlook for OTA platforms is optimistic. At the beginning of 2024, the China Tourism Academy predicts that the number of domestic tourists in 2024 will exceed 6 billion, a year-on-year increase of 22.7%. The total number of inbound and outbound tourists is expected to exceed 0.26 billion person-times. Based on the data from the first three quarters, the annual tourism data may exceed expectations.
It is expected that the number of tourists in 2025 will continue to grow at a double-digit rate, and the entire tourism industry chain will also benefit from the high growth brought by tourism consumption.
Soochow Securities released a research report stating that based on high residents' willingness to travel and a series of policy initiatives boosting the prosperity of the cultural and tourism industry, OTA platforms will continue to benefit from the high growth of inbound and outbound tourism and the prosperity of the domestic tourism base, with a stable pattern favorable for maintaining the monetization rate of OTA platforms.
Related Hong Kong stocks of travel OTA platforms:
TRIP.COM-S (09961): In Q3 2024, the company's international platform Trip.com has further expanded its influence Overseas: The volume of flight and hotel bookings increased by more than 60% year-on-year, contributing approximately 9% to the group's total revenue, with bookings from the Asia-Pacific region increasing by more than 70% year-on-year; Trip.com has become the most downloaded OTA application in multiple markets including South Korea, Singapore, Malaysia, and Thailand. Inbound tourism also maintained faster growth, with hotel bookings for inbound travel in Q3 increasing by about 100% year-on-year. With more countries implementing visa-free policies, Trip.com is expected to drive further growth. Trip.com is currently in a favorable phase, and we remain Bullish on its ability to maintain high growth in 2025, contributing more revenue increment to the group.
TONGCHENGTRAVEL (00780): In Q3 2024, transportation business revenue reached 2.03 billion yuan, with a year-on-year increase of 20.6%, and the volume of flight tickets reached a new high, among which international flight ticket volume grew by over 110% year-on-year; lodging business revenue was 1.38 billion yuan, with a year-on-year increase of 22.2%, and the number of room nights reached a historical high, with international hotel bookings increasing by over 130% year-on-year. As a leading OTA in the sinking market, TONGCHENGTRAVEL benefits from the traffic and inventory resources of Tencent and TRIP.COM, enhancing its competitive advantage, while its domestic business competitiveness continues to improve; actively laying out the international market is expected to drive the release of medium to long-term revenue and performance increments.
