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The China National Tourism Administration (CNTA) and the U.S. Department of Commerce today announced that starting on June 17, 2008, Chinese leisure travelers may travel to the United States in group tours.

CNTA Chairman Shao Qiwei will lead the inaugural Chinese tour group on June 17 to Washington, D.C.

U.S. Commerce Secretary Carlos M. Gutierrez said: ‘This memorandum of understanding opens China’s growing market to U.S. travel and tourism industries. Now, more Chinese visitors can experience America’s hospitality, cultural diversity, and natural beauty.

Increased visitation from China will boost overall visitation to the United States, strengthen the relationship between our nations, and forge new friendships between our peoples.’

By 2020, China will become the world’s fourth largest source of tourists.

On average, Chinese citizens spend more during their stay than visitors from other countries. In 2006, average per visitor spending by Chinese citizens traveling to the United States was more than $6,000.
Source: Shanghai Daily

author Gareth Powell, source www.chinaeconomicreview.com

We keep reporting in these pages new hotels being opened. Who will stay in them? The answer is that, according to a report issued by the Pacific Asia Travel Association (PATA), the annual inbound tourist arrival in China will surpass 163 million in the next three years. (Note this is only an estimate issued by PATA although it is extremely likely to be achieved.)

The report says that 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.

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

Last year, 132 million overseas tourists visited the country so reaching the figure of 163 million is not too large a stretch to imagine.
Source: China View

author Gareth Powell, source www.chinaeconomicreview.com

According to the Nielsen China Outbound Travel Monitor report Chinese travelers spend $2,597 to $3,506 on overseas trips, with the amount varying by region. That is serious money.

According to Neilsen, for those who hail from southern China, the average expenditure is at the bottom of the range, and only 10% opt for five-star hotels, compared with a national average of 12%.

But they travel more frequently than residents of other regions, averaging almost three trips a year, according to the survey that covered Beijing, Shanghai, Guangzhou and 23 other cities.

People from other parts of China travel less often but are willing to spend more when they do.

Travelers from north China (including Beijing) spend the most, with an average of $3,506 per trip. More than 20% of travelers from eastern China (including Shanghai) choose five-star hotels.

Grace Pan, head of travel and leisure research at Nielsen said, ‘With the rapid growth of the Chinese economy, the China outbound travel market is expanding.’
Source: China View

author Gareth Powell, source www.chinaeconomicreview.com

It seems likely that with the easing of tensions between the mainland and Taiwan then we can look forward to something of a tourist boom. Hoteliers and guides and restaurants plainly think this is a good thing.

However, the prospect of a mainland tourist invasion has not been view throughout with unalloyed delight.

Skeptics say only a few privileged businesses would benefit, and that the island’s scenic spots could be spoiled by greedy developers and a tourist stampede.

Long off-limits to the mainland Taiwan is now popular among mainland tourists for its scenery, preservation of Chinese tradition and for historical sites.

Chinese tourists were first officially admitted to Taiwan in 2002. But visits are capped at 1,000 a day, and tourists must travel to the island via third locations because of restrictions on direct cross-strait flights.

If Ma Ying-jeou, the president-elect, (seen looking dashing in our illustration) has his way, that will change.

Ma, who takes office on May 20, has promised to reach an agreement on more Chinese tourists and weekend cross-strait charter flights by early July, expanding to weekday charters by the end of the year and regularly scheduled flights by summer 2009. All this is part of his election pledge to stimulate the island’s laggard economy with closer cross-strait economic ties.

Under the plan, the cap would be tripled to 3,000 Chinese tourists a day, or more than 1 million per year. Last year, 320,169 mainlanders visited Taiwan, only 81,900 of whom officially came as tourists. The rest were listed as business travelers or ‘others.’

In a few years, Ma hopes, the cap could rise to 10,000 tourist visits per day.

Tourist revenues will have benefits throughout the economy, he says, especially helping lower- and middle-income Taiwanese in the service sector.

The investment bank CLSA estimates that if 1 million Chinese tourists visit Taiwan each year they will spend $1.3 billion, and help boost GDP by up to 1.4% of 2007 levels.

Not everyone has such a rosy view. Some point out that the economic benefits will not be spread around, because Chinese tend to travel to Taiwan in regimented tour groups that only stop at contracted businesses.
Source: NewsWire

author Gareth Powell, source www.chinaeconomicreview.com