What Does the US –China Visa Extension Agreement Mean for the Economy & Tourism Industry?

What Does the US –China Visa Extension Agreement Mean for the Economy & Tourism Industry?

We live in world today that is constantly evolving from businesses, markets, policies and more. The smallest changes effect the overall economy of a country. In the same context, the recent policies of visa extension agreement between the US and China are a big turning point for businesses, tourism industry, expats, and students.

In the recent developments between US and China, President Obama announced the agreement in the APEC Summit 2014 in Beijing. This policy agreement was put into effect on an immediate basis and is said to help businesses and students. While this is great for the corporate business fraternity and students, what good does it hold for the tourism industry and the economy?

Influx of Foreign Direct Investment (FDI)

The travel industry is likely to get and keep up a boost as the FDI will increase for both countries. More tourists, business travelers and students will travel to and fro these countries, giving the economy a boost. This cycle will be great for the economy, as both countries are very technology forward and invest in costly research projects and imports.

Higher Number of Flights to Beijing & New York

The ease in visa period means there will be more people travelling to and from US and China resulting in a higher number of flights to the metropolitan cities. This can be a big plus for the tourism and travel industry as more people will visit the sights here and inject money into the economy. With students being in these countries for longer, they may have family visiting them in vacations, more shoppers and fuller markets, higher number of people in eateries and cafes, public transport and sightseeing spots, etc.

Boost in Businesses and Jobs

The agreement will boost jobs and businesses in both countries. With a higher number of businesses opening up, the demand for employment will run high and thus benefit the locals and the expats. The variety of job openings will also be beneficial as locals and expats will be able to stay on the job for a longer while, sharing experience, expertise and providing trainings to employees and learning new skills.

Higher Number of Tourists

This will encourage more tourism to both countries as travelers will be able to get multiple entry visas for 5 and 10 years depending on various factors, students, business workers, and tourists. The convenience of a 1 time visa for a long period is one the biggest factors why this policy will promote tourism in both countries, especially the US.