Tourism was affected significantly by the SARS epidemic. In 2003, China received 91.66 million tourists from overseas, a drop of 6.4 percent. Of all tourists visiting China, 11.4 million were foreigners, down by 15.2 percent; 58.77 million were compatriots from Hong Kong, down by 5 percent; 18.76 million were compatriots from Macao, down by 0.9 percent; and 2.73 million were compatriots from Taiwan, down by 25.4 percent. Of all the tourists from overseas, 32.97 million stayed in China for at least one night, down by 10.4 percent.

Income of foreign exchange from international tourism was $17.41 billion in 2003, a decline of 14.6 percent. The expenses of tourists who stayed in China for at least one night were $15.68 billion, accounting for 90.1 percent of the national total income of foreign exchange from tourism. The expenses of tourists for one-day tour were $1.72 billion, accounting for 9.9 percent.

A total of 20.22 million Chinese went abroad in the year 2003, up 21.8 percent. Of this total, 14.81 million were on their private visits, up 47.2 percent and accounting for 73.2 percent of all outbound visitors. The year 2003 saw 870 million domestic tourists, down by 0.9 percent. Income from domestic tourism stood at 344.2 billion yuan, down by 11.2 percent.

The first wholly foreign-funded travel agency was established. As China pledged in its WTO accession to gradually open its tourist market, beginning from July 12, 2003, overseas investors could apply for setting up travel agencies in China, solely foreign-owned or with the foreign party holding the controlling stake. On July 18, the Jalpac Co., a company affiliated with the Japan Airlines Group, obtained approval from the National Tourism Administration of China for establishing the first solely foreign-owned travel agency in Beijing. With registered capital of about 5 million yuan, the company mainly provides services to Japanese visiting China.

More tourist destination countries were approved for Chinese citizens. By the end of 2003, the State Council had approved 59 countries and regions to be destinations of Chinese tourists, 28 of them having officially begun offering services to tourist groups of Chinese citizens at their own expenses.

Guangdong, Beijing and Shanghai residents were allowed to visit Hong Kong and Macao for private purposes. As of September 1, 2003, residents of Guangdong Province and Beijing and Shanghai municipalities can, with their own ID card and household registration card, apply to public security authorities for permit to visit Hong Kong/Macao and for valid endorsement. This is aimed to facilitate mainlanders' travel, sightseeing, shopping and visiting friends and relatives in Hong Kong and Macao special administrative regions, as well as enhance economic, cultural, and scientific and technological exchanges between the mainland and Hong Kong/Macao.