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Tourism in China

Tourism in China

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Tourism in China

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  1. 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

  4. Visitor arrivals • 1981: 7.7 million • 2007: 130 million • Averaged annual growth rate: 11%

  5. Tourism receipt • 1981: US$8 billion • 2007: US$420 billlion • Averaged annual growth rate: 20% • Increase in visitor arrivals • Increase in per capita spending

  6. Tourism receipts (million US$)

  7. 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 • US$420 billion • Per diem spending of overnight visitor: US$200

  8. 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

  9. 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

  10. The Jianguo Hotel 北京建國飯店 • Opened in 1982 • First international hotel invested jointly by foreign and Chinese • Managed by Peninsula group of Hong Kong

  11. 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

  12. 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

  13. China National Tourism Administration • CNTA • Agency in charge of tourism • Affiliated to the State Council • Chairman • Shao Qiwei 邵琪偉

  14. 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

  15. Latest Development 5th UNWTO International Conference on Tourism Statistics 30 March – 2 April 2009

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

  17. 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

  18. 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

  19. Industry Tourism Ratio (HK) Source: Census and Statistics Dept

  20. China – Moving towards TSA • Presentation by CNTA at Conference • “Provincial and National TSA development in China”

  21. 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%

  22. 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

  23. Q&A