The general practice for the new pass would be to go through travel agents, says Lin Wei, an official with Taiwan Straits Tourism Association's Beijing office.

China's Ministry of Public Security has also said that electronic travel passes may be issued to Taiwan residents sometime this year. The e-passes will make it convenient for Taiwan residents to clear mainland customs, officials with the ministry say.

At the moment, the permit looks like a passport booklet.

More than 200 million yuan ($32.3 million) will be saved annually, thanks to the entry permit-free policy, Taiwan media reported following the State Council announcement.

Approximately 5.37 million people from Taiwan visited the mainland in 2014, up 3.9 percent compared with the previous year, according to Beijing-based China Tourism Academy. Multi-entry permits cost 100 yuan and each Taiwan resident had to apply in person with the mainland's entry-exit department. A one-time permit costs 20 yuan.

Experts say the number of travelers from Taiwan is expected to rise when the new regulation comes into effect.

"The policy will give incentive to visitors from Taiwan," says Jiang Yiyi, director of International Tourism Development Institute, an affiliate of China Tourism Academy.

Things have been greatly improved for Taiwan people to visit the mainland over the years, and the new policy will clear away the last few inconveniences, according to Jiang.