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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

Tourism in China

Presented by

Derek Yue

agenda
Agenda
  • Tourism Development in China
    • History
    • Figures
    • Hotel industry
    • CNTA
  • Latest development in tourism statistics in China
    • TSA in China
background history
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
visitor arrivals
Visitor arrivals
  • 1981: 7.7 million
  • 2007: 130 million
  • Averaged annual growth rate: 11%
tourism receipt
Tourism receipt
  • 1981: US$8 billion
  • 2007: US$420 billlion
  • Averaged annual growth rate: 20%
    • Increase in visitor arrivals
    • Increase in per capita spending
china tourism overview 2007
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
hotel industry
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
hotel industry9
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
the jianguo hotel
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
spillover of management skills
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
spillover of management skills12
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
china national tourism administration
China National Tourism Administration
  • CNTA
    • Agency in charge of tourism
    • Affiliated to the State Council
  • Chairman
    • Shao Qiwei 邵琪偉
functions of cnta
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
latest development

Latest Development

5th UNWTO International Conference on Tourism Statistics

30 March – 2 April 2009

unwto
UNWTO
  • World Tourism Organization
  • Specialized agency of the United Nations
  • Promote and develop tourism statistics
economic contribution of tourism
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
tourism satellite account
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
industry tourism ratio hk
Industry Tourism Ratio (HK)

Source: Census and Statistics Dept

china moving towards tsa
China – Moving towards TSA
  • Presentation by CNTA at Conference
  • “Provincial and National TSA development in China”
provincial tsa development
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%
ultimate goal
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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