CHINA: Outbound Tourism Industry

1
CHINA Outbound Tourism Industry

• Jennifer W. Lee
• U.S. Embassy, Beijing

2
China Tourism Overview

• China becoming hottest outbound tourism market
• Projected 100 million international travelers by
  2020
  
• U.S. 8th most popular destination for Chinese
  travelers,
  
• Top destination for Chinese travelers outside of
  Asia.
  

3
China Market Demand
2005 43 increase in Chinese outbound tourists
to 31 million 2020 100 million international tra
velers
4
China Tourism in 10 years.
2
7

• Chinese travel expenditure 2nd fastest growing
  in the world. Twice the global average.
  
• China 2005 7th in the world in travel and
  tourism.
  
• CHINA 2015 Estimated to rise to 2nd in the world

5
Approved Destination Status (ADS)

• Approved Destination Status (ADS) Countries
  Approved by the PRC government for designated PRC
  travel companies to organize group tours to.
  
• 124 ADS countries and regions, 81 implemented.
• Chinese unable to travel in groups to countries
  without ADS.
  
• Cannot advertise for group tourism to non ADS
  countries.
  
• No formal ADS agreement between U.S. and China

6
Visa Progress

• Increasing number of B1/B2 (business or tourism)
  visas
  
• FY 2005 292,248 non-immigrant visas in China.
• 77 of those visas were B1, B2, or B1/B2 visas
• January 2006 Secretary of State and Secretary of
  Homeland unveiled new steps to welcome more
  visitors

7
Chinese Travelers to the U.S
203,000
2005 Arrivals 405,000 in 2005 Receipts 1.9
billion dollars.
8
Chinese Travelers in U.S.

• China 12 International Market in U.S.
• PRC Fastest Growing Market globally at 33

9
U.S. Destination in China
U.S. Market 8 in China Top Market Outside of A
sia
8
10
The Average Chinese Tourist.

• Past Chinese travelers businessmen or students
• Now Young, Career-driven
• Shift Business to Leisure 40 Chinese 1st time
  travelers

11
Chinese Tourist Preferences

• Past
• Business Travel
• Economical Package tour w/ Chinese Food
• Whirlwind sightseeing tours
• Cheap accommodation
• High end consumer goods and Deals

• Trend
• Boutique, Authentic Tours
• Leisure/Luxury
• Higher Living Accommodation
• Individual Travel

12
Market Entry Roadmap

• Marketing/promotion to travel agents and end
  users
  
• Joint ventures with government designated
  outbound travel agents sell travel services to
  Chinese end users
  
• CVB and Receptive Coordination

13
Opportunities and Resources

• 11/16-19 2006 China International Travel Mart
• CS China travel and tourism industry website
  http//www.buyusa.gov/china/en/tourism.html
  
•  
• Beijing
• Jennifer.Lee_at_mail.doc.gov
• Shanghai
• Kevin.Chambers.mail.doc.gov