The annual inbound tourist arrival in China will surpass 163 million in the next three years, according to a report issued by the Pacific Asia Travel Association (PATA) on Thursday.

China's tourism industry recorded a staggering growth in the past two decades, and the industry is now worth more than 100 billion U.S. dollars a year and creates 90 million jobs nationwide, the PATA said in the report.

"While the overall statistics are undoubtedly impressive, maximising tourism potential is not just about swelling numbers, but it is also about sustainability and even guaranteeing repeat traffic," said Peter de Jong, PATA chief executive officer.

Last year, 132 million overseas tourists visited the country.