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Tourism in China

Tourism in China. Presented by Derek Yue. Agenda. Tourism Development in China History Figures Hotel industry CNTA Latest development in tourism statistics in China TSA in China. Background history. 1949 – 1974 China was closed-door Only selected foreign visitors Late 1970s

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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

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