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This report will provide the understanding of the environment under which this industry operates. This report includes the study of history and structure of travel and tourism, national policies about this sector and effect of changes in policies. This study also includes impacts of industry developments as well as effects of supply and demand.
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2. 2
Agenda
Tourism Development in China
History
Figures
Hotel industry
CNTA
Latest development in tourism statistics in China
TSA in China
3. Background history
3
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. 4
Visitor arrivals
1981: 7.7 million
2007: 130 million
Averaged annual growth rate: 11%
5. 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
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
7
8. 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. 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
10
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
11
12. Spillover of management skills
12
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
13
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
14
15. 15
Latest Development
5th UNWTO International
Conference on Tourism Statistics
30 March – 2 April 2009
16.
17. 17
UNWTO
World Tourism Organization
Specialized agency of the United Nations
Promote and develop tourism statistics
18. 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
19. Tourism Satellite Account
As a distinctive method to measure
19
Value-added
Employment creation
TSA divides economic activities into tourism
and non-tourism activities
Direct contribution can be measured and
compared with traditional industries
20. Industry Tourism Ratio (HK)
Selected tourism industry 2000 2003 2006
Hotels / boarding houses 0.67 0.72 0.74
Air transport and water
0.38 0.31 0.40
passenger transport
Retail trade 0.13 0.20 0.23
Restaurants 0.10 0.13 0.16
20
Source: Census and Statistics Dept
21. China – Moving towards TSA
Presentation by CNTA at Conference
“Provincial and National TSA development
in China”
21
22. Provincial TSA development
22
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%
23. 23
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
The China National Tourism Administration (CNTA) is the Chinese government authority responsible for the development of tourism in the country. The CNTA is subordinate to the State Council. Its headquarters are in Beijing, with regional branches in various provinces.
CNTA does not have the authority of a full department within the Chinese government to enforce regulations but in other respects it acts as a ministry. Provincial CNTA offices in each Chinese province report to the central HQ in Beijing. CNTA has several overseas offices called CNTO (China National Tourism Offices) that are charged with promoting tourism to China. In Europe, there are CNTO offices in London and Paris
Satellite Account: expansion of the analytical ability of national accounting (refernce to National System of Accounts in 1993)
The preparation of tourism satellite account, according to Yantai tourism Bureau on 15th this month, will be officially initiated in a few days as a provincial trial in Yantai city to better assessing the development level of tourism economy in Yantai city.On the preparation of the tourism satellite account, tourism industry is treated as an integrated part of local national economic accounting system, offering a comprehensive and scientific measurement of the contribution rate made by tourism industry to regional economy, financial revenue and employment of Yantai. Upon completion, tourism-related enterprises in the fields of transportation, employment, catering and other relevant enterprises will make clear the contribution made by tourism industry to their own development, providing guiding reference for further development.The account takes into consideration two aspects, i.e. the demand of economic activities and the supply of tourism products, covering not only the overall demand of tourism industry on material and service products, but also the establishment of production scale of production sectors, such as transportation, hotel and catering, whole sale and retail, management of tourist attractions, residential service and travel agency.As a provincial pilot city applying tourism satellite account, Yantai City carried out 16 major supplementary investigations based on current statistic data and data collected from the second National Economic Census. At present, the investigation programs under tourism satellite account on inbound tourists’ expenses, domestic tourists’ expenses and the tour-group expense structure of travel agency have been completed and the entire plan is estimated to be completed in two years.