Core Insights - The "May Day" holiday has seen a significant increase in inbound tourism, with many cities experiencing over a 100% growth in inbound travel [2] - The implementation of tax refund policies has further stimulated inbound consumption, with the threshold for tax refunds lowered and the cash refund limit increased [4][6] - The "immediate refund" service has simplified the tax refund process, enhancing tourists' disposable income and boosting shopping consumption [7] Policy Enhancements - The Chinese government has been promoting tax refund policies since 2015, with recent expansions to more regions and lower thresholds for refunds [4][9] - The tax refund rate for general goods is 11%, allowing tourists to save approximately 900 RMB on a 10,000 RMB purchase after fees [10] - The government aims to improve the tax-free shopping experience to enhance inbound consumption [11] Pilot Program Effectiveness - The pilot program for "immediate refund" has shown remarkable results, with a 22-fold increase in tax refund scale in pilot areas compared to the previous year [16] - Shanghai, as a leading pilot city, accounted for 48% of the national tax refund sales, with a significant year-on-year growth in sales and refund amounts [17][18] - The popularity of tax refund items includes clothing and electronics, with a notable increase in sales of domestic smart products [19][21] Potential Cities for Growth - Major cities like Beijing, Shanghai, Guangzhou, and Shenzhen are leading in inbound tourism, with cities like Chengdu and Xiamen also showing significant growth [25][29] - China's inbound tourism market has substantial growth potential compared to other countries, with only 0.5% of GDP from inbound tourism compared to 1-3% in major countries [8] - The increase in international flights and improved policies are expected to enhance the attractiveness of smaller cities for inbound tourism [32][38]