As a receiver, China is expected to overtake France as the world's most popular tourist destination in 2020. As a source, China is expected to be just as mighty. KEVIN SINCLAIR looks at the mechanics that will make all of this come true, not just hype.
As China heads towards the Year of the Monkey, the nation's travel and tourism industries are planning intently for the Year of the Rat. The capital is being transformed largely on the basis of its role of host of the 2008 Olympics Games.
Official estimates are that China will need 230 more star-rated hotels to cope with the 800,000 foreigners expected to go to the Olympics, not to mention millions of increasingly wealthy Chinese from all over the country.
Most of those new builds will be in or around Beijing. That means an average of seven per cent expansion of hotel rooms annually until 2008, according to
Beijing Tourism Bureau (BTB).
BTB's vice-director, Mr Yu Debin, said there would also be a need to update management and service levels.
Of the 576 star-rated hotels in Beijing, only 60 are joint ventures with foreign funds, but they earn 56 per cent of total hotel revenue.
A regular string of top travel professionals have been visiting China over the past year. The consensus is overwhelming. As Swiss Tourism Board director South-east Asia, Mr Federico Sommaruga, expressed it recently in Beijing: China will lead global tourism in the 21st century.
Speaking at the 15th session of the World Tourism Organisation (WTO) in Beijing, he pointed to economic growth after entry into the World Trade Organization and the spurt caused by the Olympics. Chinese tourists were becoming the largest purchasing group, he said.
This is great news for global tourism, Mr Sommaruga said.
Over recent years, the numbers of Chinese travelling overseas have rocketed an incredible 30 per cent annually. This is expected to grow at a continually faster rate as the government keeps relaxing travel regulations.
Inbound is growing just as fast. According to the WTO, by 2020, China will receive 130 million foreign visitors, surpassing France as the world's most popular tourist destination.
WTO secretary-general, Mr Francesco Frangialli, said recently in
Beijing that in that same year, the mainland would become the sixth leading generator of tourists, generating 100 million tourists and travellers.
China National Tourism Administration (CNTA) figures tip that foreign tourists will generate US$58 billion income by 2020.
Foreign investment remains a vital element in travel industry growth and in general economic development. The liberalisation of tourism both within China and permitting Chinese to travel more easily abroad, is vital for the industry.
Under ideas laid down by international bodies, China now allows foreign companies to own majority interests in travel agencies. The first of these foreign businesses was set up in 2002 by China International Travel Service Corporation (CITS) and American Express.
Foreign agencies can set up shop in China. This is good news for tourists going to China and will also aid Chinese seeking to holiday overseas.
When they are able to make profits by operating themselves inside China, overseas tour companies will naturally promote China as a destination. This will push China in many new markets.
It will also immediately prod the service mentality domestic tour operators. There will be efficient, friendly service offered by the foreign companies with properly trained staff. The many hapless travel companies that still exist in China will have to rapidly improve service standards or go out of business.
