How Shanghai leverages arts and events to fuel tourism and power economic growth


Relaxed visa rules, arts and cultural events, alongside landmark tourist destinations, have become new drivers for Shanghai’s economy as a surge in inbound travellers bolsters retail sales.

The financial and commercial hub of mainland China attracted 5.5 million overseas tourists between January and August, up 37 per cent year on year, offering a much-needed boost to the city’s gross domestic product (GDP), which outpaced national growth for the first time in nearly a decade.

Zhang Yina, director of a consumer market big-data lab at Fudan University that is backed by the Ministry of Commerce, said that an influx of foreign travellers buoyed by eased visa requirements and world-class arts shows like symphonies and operas had lived up to the city government’s expectations.

“The ultimate goal for Shanghai is to take advantage of inbound tourism to create a sustainable business formula,” said Zhang, a professor who also advises the central and local governments. “Eventually, Shanghai’s role as a major international tourist destination needs to be strengthened.”

A Lego model of Shanghai. Retail sales are playing a big role in the city’s growth, economists say. Photo: EPA
A Lego model of Shanghai. Retail sales are playing a big role in the city’s growth, economists say. Photo: EPA

Zhang made the remarks after Shanghai, once the economic locomotive of the mainland, reported a 5.5 per cent increase in economic output during the first three quarters of 2025, compared with the national growth of 5.2 per cent. It was the first time since 2016 that the city’s economic performance had beaten the national average. Despite being the mainland’s most developed metropolis, Shanghai had refrained from heavy investment in infrastructure projects over the past decade, with its economic expansion lagging behind other provincial-level regions.

Zhang Xueliang, a professor of economics at Shanghai University of Finance and Economics, said the city’s GDP numbers so far this year reflected a smooth and successful transition of its growth pattern, with new engines such as hi-tech sectors and buoyant retail sales playing a bigger-than-expected role. Shanghai mayor Gong Zheng announced a full-year GDP growth target of 5 per cent for 2025 during the annual session of the local legislature in January.
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