Inbound travelers to China will no longer face quarantine measures, as the country dismantles its stringent 'Covid Zero' policy.

China's decision to lift quarantine requirements for incoming visitors from January 8, 2023, is set to have a significant impact on global tourism and economies, particularly those that rely heavily on Chinese tourists.

The world's second-largest economy has been largely isolated since early 2020 due to stringent travel restrictions. This isolation has led to a decline in domestic tourism income, with a 26% drop during the National Day vacation in October compared to the same period in 2019.

However, with the easing of travel restrictions, countries that depend on Chinese tourists for a large portion of their tourism income may see a boost. Shares of travel and consumer goods companies in Japan and South Korea have already risen following China's announcement.

In an effort to further revive consumption and support the private sector, China has vowed to achieve a growth rate of 5% or higher in 2023. To support this, the government will assist in visa applications for foreigners traveling to China for various purposes.

China's sudden U-turn on Covid-19 policies has, however, complicated economic predictions and may cause short-term headwinds. The government authority responsible for the use and modification of COVID-19 isolation measures is the National Health Commission of the People's Republic of China.

In response to the ongoing pandemic, China has increased the share of ICU beds from less than 4 per 10,000 people to 10.6 in about a month. Furthermore, another 70,000 beds across China can be converted for intensive care. The Chinese Center for Disease Control and Prevention has also announced that the frequency of reporting Covid cases may be reduced.

The illness caused by the new coronavirus is expected to become a common respiratory condition, with most cases reported to cause only light upper respiratory system infections. The Chinese name of Covid-19 has been changed to "brand-new coronavirus infections."

The Chinese government has also taken steps to enhance the treatment of serious Covid patients by improving the supply of life-saving medical devices and the capacity of intensive care units. Quarantine facilities in China will be repurposed into hospitals for treating Covid patients.

The Omicron variant, which has been causing concern globally, has shown to have much lower virulence compared to the ancestral strain that originated from Wuhan. People arriving in China will need to provide negative Covid test results within 48 hours of departure.

The Chinese government predicts that the new coronavirus will persist in nature for a long time. Despite this, the country is taking proactive steps to manage the situation and reopen its borders, offering a glimmer of hope for a return to normalcy in the global economy and tourism sector.