Shanghai’s Inbound Tourism Boom Signals Rise of High-End Travel Potential
The surge in inbound tourism in 2025 has rapidly unveiled Shanghai’s potential for high-quality travel. March of this year saw continuous activity in Shanghai's inbound and premium tourism sectors. From March 16th to 18th, the inaugural LuxeAsia 2026 was held at the West Bund Dome Art Center in Xuhui District. On March 29th, the 2026 Shanghai Tourism Industry Expo, a bellwether event for the local industry, opened. That day also witnessed two international port-of-call cruise ships—Mein Schiff and MSC Magnifica—simultaneously dock at the Shanghai Wusongkou International Cruise Terminal, bringing approximately 5,500 overseas visitors.
Data from the Shanghai Municipal Administration of Culture and Tourism shows the city welcomed a record 9.3602 million inbound visitors in 2025, a year-on-year increase of 39.58%. Further growth is expected this year, with new strategic plans already in motion.
Senior executives from global tourism giants are also optimistic about the Chinese and Shanghai markets. In a recent interview, Kent Zhu, CEO of Accor Greater China, stated, "The nearly 40% growth in Shanghai’s inbound tourism is just the beginning. We are confident in the potential for high-quality travel in Shanghai and across China." He also revealed that the iconic Shanghai Peace Hotel has commenced a new renovation phase. While its name carries profound historical and cultural significance, its Chinese name will be preserved.
An Irreplaceable Name: Shanghai Peace Hotel to Retain Its Chinese Name
In 2025, Accor Group and Jinjiang International jointly announced a renovation plan for the globally renowned landmark, the Shanghai Peace Hotel. Upon completion, it will become a flagship property under the Raffles brand. The hotel will remain operational during the renovation.
Raffles is Accor’s brand dedicated to ultra-luxury hotels. Once renovated, the Shanghai Peace Hotel will join the Singapore Raffles Hotel and The OWO Raffles London to form the brand’s trio of global flagships.
Since the announcement, there has been public curiosity: Will the Shanghai Peace Hotel be renamed? Kent Zhu clarified: the Chinese name "Peace Hotel" will remain unchanged. The English name will be updated to reflect the new operator, changing from "Fairmont Peace Hotel" to "Raffles Peace Hotel Shanghai."
Historical records show the Peace Hotel, originally named the Cathay Hotel, was built in 1929 by Sir Victor Sassoon. After the founding of the People’s Republic of China, the North and South buildings resumed operations in 1956 and 1965, respectively, and were jointly named the "Peace Hotel." In 1996, it was listed as part of the Bund historical building complex as a National Key Cultural Relics Protection Unit.
"The Peace Hotel has witnessed a century of history on the Shanghai Bund and is an irreplaceable cultural symbol," Zhu stated. Keeping the Chinese name unchanged and only updating the brand name in English follows standard international practice, he added.
Zhu explained that, as a protected cultural heritage site, the renovation strictly adheres to the principle of "restoring the old as it was." The project aims to protect the building’s original architectural features while infusing it with new vitality suited for the modern era. The upgrade design is currently underway. The renovated hotel will retain its Art Deco style and iconic Nine Nations Suites. The famous Old Jazz Band will also remain, and the hotel will continue to enhance its "Shanghai-style culture" experiences, creating a new chapter of "touchable, living history."
Inbound Growth Just the Start, High-End Tourism Potential Emerges
Data indicates the city set a new record with 9.3602 million inbound visitors in 2025, a 39.58% increase.
"Last year, our inbound tourism performance for hotels in China grew by over 40%," Zhu said. Accor, the largest European hotel group globally with operations in over 110 countries, entered the Chinese market in 1984 and established its Greater China headquarters in Shanghai. China is now a crucial market for the group. In 2025, among international guests at Accor’s Shanghai hotels, the largest share came from Asia-Pacific regions like Singapore and Malaysia, followed by European visitors. Zhu attributes the significant inbound growth to Shanghai’s continuous improvements in visa facilitation, payment systems, and service standards, providing international tourists with efficient, high-quality experiences. "This is just the beginning. Shanghai’s inbound tourism will maintain double-digit growth in the coming years," he predicted.
Corresponding with the inbound boom, Shanghai’s potential for high-quality tourism is becoming evident. Zhu noted that China’s hotel market, especially in first-tier cities like Shanghai, has been intensely competitive over the past two decades. Yet, he remains optimistic about its development. "Taking luxury hotels as an example, for the past 20 years, prices for comparable hotels in China were among the lowest globally, while the hardware and quality were among the highest," Zhu explained. Recently, the actual supply growth rate for luxury hotels has slowed significantly, while demand for luxury travel has maintained a high growth rate. With this gradual improvement in the supply-demand relationship, China’s hotel industry, particularly the high-end segment, is embracing new development opportunities.
