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Chinese travel agencies have great potential as tourism suppliers, but they are facing two major challenges, said Liu Jiaxiang, chairman of the China Travel Service Group of China (CTS). He explained that globalization in the information era has provided consumers with greater and more direct access to tourism resources. Some of the original functions of travel agencies are being challenged by the Internet. China's entry into the WTO expedited the "opening" of the tourism industry. Growing numbers of foreign and domestic enterprises want to enter the market, and competition is much fiercer than before, he added. Since the 1990s, Chinese travel agencies have been bidding farewell to the high profits of the planned economy era. China's 10,532 agencies reaped combined profits of 1.23 billion yuan (US$150 million) last year, with turnover reaching 58.9 billion yuan (US$7.3 billion), one third of that of American Express. Liu went on to say that many travel agencies are implementing new measures to confront the challenges. Mergers are common, and are an efficient way of optimizing resources and increasing in scale. Listing the company on the stock market, cooperating with foreign companies and exploring overseas markets are other ways favored by Chinese travel agencies.