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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

Presented by

Derek Yue


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Agenda

  • Tourism Development in China

    • History

    • Figures

    • Hotel industry

    • CNTA

  • Latest development in tourism statistics in China

    • TSA in China


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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: US$8 billion

  • 2007: US$420 billlion

  • Averaged annual growth rate: 20%

    • Increase in visitor arrivals

    • Increase in per capita spending



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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

    • US$420 billion

    • Per diem spending of overnight visitor: US$200


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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 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


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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 邵琪偉


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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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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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