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China's tourism gives as much as it
takes
By Paolo Hooke
BEIJING - Now the most popular tourist
destination in the Asia-Pacific, and the region's
biggest source of tourists, according to a report
issued by Visa International, China's tourism
industry holds massive potential and promises many
opportunities in terms of both inbound and
outbound travel.
Last year, inbound
tourist numbers to China broke the 100 million
mark for the first time, with 109.04 million
tourists visiting in 2004. According to statistics
from the China National Tourism Administration,
this earned the country US$25.74 billion in
foreign exchange revenue.
These tourists
mainly came from Japan, South Korea, Russia,
Indonesia, India, France, Australia, Canada,
Germany, Malaysia, the Philippines, the United
States, Singapore and the United Kingdom. In the
first 10 months of 2004, China received 89.79
million tourists, an on-year rise of 20.34%. This
represented an 11.09% increase over the same
period in 2002.
The five countries with
the fastest growth rates in terms of tourists
entering China were India, Russia, South Korea,
Australia and Singapore. They recorded growth
rates of 45.32%, 40.96%, 31.93%, 27.28% and
27.16%, respectively. The tourist sector's foreign
currency income in the same 10-month period was
estimated at $19.26 billion, an on-year jump of
37.45%. Overseas tourists account for 49.79% of
China's tourism exchange revenue. Hong Kong, Macau
and Taiwan account for 26.89%, 9.81% and 14.01%,
respectively.
And this is not a one-way
street. Outbound tourists from China reached 28.85
million in 2004. In the first 10 months of last
year, 23.84 million Chinese travelled overseas, an
on-year leap of 49.8%. Of these, some 5.87 million
traveled for business reasons, an on-year rise of
8.55%. Due to the rising levels of affluence,
particularly among the expanding middle class,
over 12.97 million Chinese travelled overseas for
private reasons, an on-year surge of 55.15%.
China's outbound tourism market is proving
very lucrative for sales of luxury goods in
developed countries. According to a survey by
Goldman Sachs Global Investment Research, Chinese
tourists fork out twice as much on luxury items as
they do at home.
In the short term, Hong
Kong is likely to attract most of the spending on
luxury goods by the mainland tourists due to its
proximity and attractive pricing. But Europe,
particularly France and Italy, is believed to lure
a significant number of Chinese shoppers.
Seeking to cash in on this lucrative
Chinese outbound tourism market, European tourism
operators recently held promotion efforts during
the Chinese New Year festival. For example, 66
Italian businesses held a tourism workshop in
Beijing, saying it was the first time that Italy
had sought to promote its image here.
Meanwhile, foreign giants are scrambling
to take advantage of the many opportunities in the
domestic Chinese tourism market, which in 2004
earned revenue amounting 471.1 billion yuan ($58
billion). French hotel brand Accors Sofitel in
2004 launched its first economy hotel in China -
the Ibis Tianjin. The hotel has achieved a strong
level of business, averaging occupancy rates of
over 80% since it opened.
The firm plans
to increase its hotel network in China from the
present 24 to at least 36 by 2006. The company
hopes to top into the growth in China's inbound
tourism market, as well as raise the profile of
the group's brands for Chinese who may travel
overseas.
China's tourism
outlook
China's lucrative inbound and
outbound tourist markets hold enormous potential.
It is estimated that by 2020 the income generated
by China's tourist sector will top $302 billion,
accounting for between 8-11% of the country's
gross domestic product.
As more and more
foreign countries become approved tourist
destinations and with disposable incomes on the
rise, China's outbound tourism market is expected
to grow dramatically. Last year, 15 European
countries were granted Approved Destination Status
by China, which is predicted to lead to a sharp
increase in the number of Chinese nationals
visiting the continent.
France's junior
tourism minister, Leon Bertrand, acknowledges the
"considerable potential" of the Chinese market and
"the importance of the Chinese market for France".
In 10 years, "the Chinese will be the
first or second-ranked nationality among visitors
to France, ahead of the British, the Americans or
maybe the Japanese", said Paris tourist board
director Paul Roll.
Italy is another
popular destination for Chinese tourists.
Piergiorgio Togni, general manager of the Italian
State Tourist Board, said, "Though Chinese
tourists account for less than 1% of arrivals in
Italy, China will be Italy's most important
tourism partner in the future." He added that he
believes a new wave of Chinese tourists will reach
Italy in the near future.
It is predicted
that China's outbound tourist sector will grow by
20% annually. According to the Economic
Intelligence Unit, the number of Chinese travelers
is forecast to rise to 49 million by 2008, 60
million by 2010 and 100 million by 2015.
This latter figure is supported by the
World Tourist Organization (WTO), however it
differs in that it expects it to be achieved five
years later - in 2020. Visa International
Forecasts that China's income from tourism will
reach $60 billion by 2008.
According to a
forecast made by the WTO, by 2010 China will
become the world's biggest tourism destination and
the fourth biggest source of tourists. Inbound
tourist arrivals to China are forecast to reach
210 million by 2020, with foreign tourist revenue
set to reach $58 billion. This sharp rise is on
the back of the country's rapidly expanding
aviation sector and the rise in air travel in
China. By 2019 it is predicted that China will
have a massive fleet of 22,000 passenger aircraft
- four times the present number.
Tim
Ramage, president of British Airways China,
predicts Chinese passengers to rise by 15-20% each
year. Recently, British Airways announced it would
increase capacity to China, running more
Beijing-London and Hong Kong-London services.
A milestone tourism memorandum was signed
in January between the two countries, allowing
Chinese tourists to visit the United Kingdom.
Inbound tourists and
international revenue (1996-2003)
| Year
|
Inbound* |
Revenue** |
| 1996
|
51.13 |
10.20
|
| 1997
|
57.59 |
12.07 |
| 1998
|
63.48 |
12.60 |
| 1999
|
72.80 |
14.11
|
| 2000
|
83.44 |
16.23 |
| 2001
|
89.01 |
17.79 |
| 2002
|
97.91 |
20.39 |
| 2003
|
91.66 |
17.40 |
*million
people
** US$
billion
Source: China
National Tourism Administration
Government policy
China's
tourist sector was one of the first Chinese
industries opened up to the outside world. In line
with its commitments to the World Trade
Organization, China will further speed up its
opening to outside visitors. The China National
Tourism Administration agreed in July 2003 to
allow Jalpak International (China) Co Ltd to
establish China's first completely foreign-owned
travel service in China. This was four years ahead
of schedule, according to China's trade
commitments, highlighting the country's fast pace
of reform.
The Chinese government hopes
increasing numbers of large foreign tourist firms
will invest in China. Accordingly, they have
sought to promote the establishment of foreign
shareholding joint ventures or wholly
foreign-owned travel services, while also
encouraging China's large tourist firms to venture
overseas in their business expansion.
Promoting the development of sustainable
tourism is also a priority, with the overall
environmental quality of tourist areas being
improved.
(Asia
Pulse) |
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