Foreign tourists show some items they bought in Suzhou, East China's Jiangsu Province. (Photo : www.usa.chinadaily.com.cn)
The local governments of Beijing and Shanghai are offering overseas tourists with tax refunds on their purchases starting July 1, as a move to boost tourism in the two Chinese megacities.
The Global Times reported that foreign tourists, including those from Hong Kong, Macao and Taiwan who have stayed in the Chinese mainland for no more than 183 consecutive days, can avail a rebate of 11 percent on goods bought at selected department stores. The minimum purchase is 500 yuan ($80) for a value-added tax refund in any one store in a day.
According to the announcement, the refund is valid when the purchase is made within 90 days before departure as long as the products remain unused.
Beijing has designated 86 stores, while Shanghai has 27 stores, mostly located in tourist spots and business hubs where overseas tourists' favorite items, such silk and tea, are often sold, officials said.
"The main purpose of the initiative is to attract more foreign visitors and boost their purchases in China," Liu Simin, deputy secretary-general of the Beijing Tourism Society, said.
According to the Workers' Daily, the number of foreign tourists to China has been dropping on a quarterly basis since 2012. In the first quarter of 2015, only 5.61 million foreign tourists visited China, a decrease by 3.9 percent compared with the same period last year. The income from inbound trips fell by 0.4 percent as well.
In 2011, China started a pilot tax refund program in Hainan Province that required a minimum purchase of 800 yuan. Unlike before when only 324 items were covered, the program now covers all items except those prohibited by law from being taken overseas.
Liu, however, cautioned the government that more lenient tax rebate policies do not necessarily result in more tourists.
Liu explained that the high yuan exchange rate contributed to the drop of inbound trips, in addition to smog and occasional terrorist attacks. He said that unless the major problems remain unsolved, the tax rebate initiative may achieve limited success.
