Tourism in China

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Tourism in China

• Presented by
• Derek Yue

2
Agenda

• Tourism Development in China
• History
• Figures
• Hotel industry
• CNTA
• Latest development in tourism statistics in China
• TSA in China

3
Background history

• 1949 1974
• China was closed-door
• Only selected foreign visitors
• Late 1970s
• Leadership decide to promote tourism
• Lifting travel restrictions, investment in
  transport
• as a means to earn foreign exchange

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Visitor arrivals

• 1981 7.7 million
• 2007 130 million
• Averaged annual growth rate 11

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Tourism receipt

• 1981 US8 billion
• 2007 US420 billlion
• Averaged annual growth rate 20
• Increase in visitor arrivals
• Increase in per capita spending

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Tourism receipts (million US)
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China Tourism Overview 2007

• Total Visitor Arrivals reached 130 million
• 78 million from Hong Kong (60)
• 23 million from Macao (18)
• 4 million from Taiwan (3)
• 26 million from foreign countries (19)
• Tourism expenditure from Inbound Tourism
• US420 billion
• Per diem spending of overnight visitor US200

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Hotel industry

• Influx of visitors require high quality hotels to
  accommodate
• Generate huge demand for hotels
• 6th 5-year plan (1981-1985)
• Identified hotel industry as important component
  to be developed
• Boost economy and social development

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Hotel industry

• 1978 beginning of the reform
• 137 Hotels providing 15,539 rooms
• 2006
• 12,751 Hotels providing 1,459,800 rooms
• FDI opportunity
• Invest in construction
• Management skill spillover

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The Jianguo Hotel ??????

• Opened in 1982
• First international hotel invested jointly by
  foreign and Chinese
• Managed by Peninsula group of Hong Kong

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Spillover of management skills

• Management system of Hong Kong experts with local
  staff a blend of international standard with
  local culture
• Vertical management
• Clearly defined responsibilities at different
  levels

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Spillover of management skills

• First 5 years of operation
• Top and middle management by Hong Kong experts
• After 5 years..
• Proportion of Hong Kong managers decrease
• After 10 years
• Peninsula group retreat
• Completely run by local staff
• Becomes a leader of hotel industry
• Other hotels sent managers to learn from its
  experience

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China National Tourism Administration

• CNTA
• Agency in charge of tourism
• Affiliated to the State Council
• Chairman
• Shao Qiwei ???

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Functions of CNTA

• Plan Coordinate development of tourism industry
• Implementation of market development strategies
• Optimize use of tourism resources
• Ensure tourism service quality
• Promote international communication and
  cooperation
• Policy on travel to Hong Kong, Macao and Taiwan
• Oversee the education and training

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Latest Development

• 5th UNWTO International Conference on Tourism
  Statistics
• 30 March 2 April 2009

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(No Transcript)
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UNWTO

• World Tourism Organization
• Specialized agency of the United Nations
• Promote and develop tourism statistics

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Economic contribution of Tourism

• Tourism as a service domain that comprise a wide
  range of economic activities across different
  industry
• Status of buyer (visitor or local) determine
  tourism related or not

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Tourism Satellite Account

• As a distinctive method to measure
• Value-added
• Employment creation
• TSA divides economic activities into tourism and
  non-tourism activities
• Direct contribution can be measured and compared
  with traditional industries

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Industry Tourism Ratio (HK)
Source Census and Statistics Dept
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China Moving towards TSA

• Presentation by CNTA at Conference
• Provincial and National TSA development in China

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Provincial TSA development

• Jiangsu Province
• Pilot run of TSA (reference year 2002)
• Tourism value-added making up 4.2 of GDP
• Proportion of tourism employment 8.5
• Beijing Municipality (reference year 2004)
• Tourism Value-added making up 6.7 of GDP
• Proportion of tourism development 11.7

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Ultimate goal

• Develop TSA for national level
• More and more trial run
• Yantai in Shandong Province
• Comply UNWTO standard
• Fully understand economic contribution and
  significance of tourism in Chinese economy

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QA