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FROM April 24 to 25 the 2014 World Travel & Tourism Council （WTTC） Global Summit convened in Sanya， China， the second time the event was held in the Asian country since the Beijing Summit in 2010. The WTTC forecasts that China’s tourism industry will grow by seven percent annually for the next 10 years， overtaking the United States as the world’s biggest travel and tourism economy by 2023.
Fast Growing Market
In recent years， the Chinese government has stepped up support for tourism and promoted it to a strategic pillar industry of the national economy. Further， the country has advanced infrastructure construction to facilitate domestic travel. Last year China’s first Tourism Law took effect， marking a new stage of development for its tourism industry. The booming domestic tourism market has attracted increasing international attention.
As a platform to highlight major issues concerning tourism， WTTC summits have been held annually in different countries since 2000. It is no surprise that China has hosted two WTTC summits within four years， as the country has become a powerful engine of growth for the world’s tourism industry. During recent summits， China has become a highlight with an increasing number of Chinese entrepreneurs invited to speak. From fast-growing tourism e-businesses to large-scale listed companies， the world tourism industry wishes to hear more from China.
Tourism is soon to become one of the world’s most important industries， and China will be a key driver in its development.
“In 2013 one third of global tourism growth came from Asia， and China was a major driving force. This phenomenal growth will be driven by increasing wealth among the Asian middle classes， particularly in China. The United Nations describe it as a historic shift， the likes of which have not been seen for 150 years，” said WTTC President & CEO David Scowsill.
According to WTTC data， in 2013 some 98 million Chinese tourists travelled out of the country. China leads the world in outbound tourist spending， outstripping the United States and Germany to be the world’s leading source of international tourists. Meanwhile it received about 50 million inbound tourists， with a total consumption of RMB 321 billion. It is estimated that this year inbound tourists will exceed 57.2 million and reach 115.52 million by 2024. In addition to the huge number of domestic tourists， China’s tourism industry has high potential. Promising Hotel Industry
China’s hospitality industry faces stiff headwinds as Chinese economy is under downward pressure. The government has increased scrutiny on official expenditures， in particular receptions and travel， as part of its anti-corruption campaigns. These disadvantages however do not stop transnational hotel groups’expansions in China.
“China has huge potential to develop its hospitality industry，” said Arne Sorenson， president and CEO of Marriott International Inc. Marriott expects to more than double in size in Asia through 2016， reaching a total of 330 hotels.Nearly half of them will be opened in China， with priority on the country’s second- and third-tier cities. This year Marriott will open new hotels in cities like Haikou of Hainan Province， Harbin of Heilongjiang Province and Zhengzhou of Henan Province. According to Arne Sorenson， affected by the government’s frugality policies， sectors like high-end catering， tobacco and wine are declining. However， China’s consumers， with stronger demands for tourism， are filling up this gap. Prospects for the hotel industry therefore remain bright.
“There is no change in our strategy in China， and we are very confident about the prospects for China’s hotel industry，” said Wolfgang Boettcher， Starwood Hainan Area Managing Director. Starwood Hotels and Resorts runs about 130 hotels in China， with another 118 hotels in the pipeline.
“Everybody is talking about China，”said Richard Solomons， CEO of InterContinental Hotels Group （IGH）. “China is IHG’s second largest market after the United States. The growth in China is amazing， as more and more Chinese people begin travelling.”
Focus on Quality
One effect of tourism development is that traditional group tours are losing ground to customized tours. Chinese tourists are becoming more sophisticated， and look forward to richer experiences and higher-quality services.
According to Clement Kwok， managing director and CEO of Hong Kong and Shanghai Hotels， Chinese consumers have changed their consumption habits and refined their tastes after greater exposure to the bigger world. Chinese tourists， who used to focus on material consumption， now pay more attention to cultural experience. High quality travel will play an important role in the sustainable development of China’s tourism market. Mr. Kwok hence concluded that China is not only a perfect market to promote high-end products， but also an ideal place to allow these products to evolve.
Fast Growing Market
In recent years， the Chinese government has stepped up support for tourism and promoted it to a strategic pillar industry of the national economy. Further， the country has advanced infrastructure construction to facilitate domestic travel. Last year China’s first Tourism Law took effect， marking a new stage of development for its tourism industry. The booming domestic tourism market has attracted increasing international attention.
As a platform to highlight major issues concerning tourism， WTTC summits have been held annually in different countries since 2000. It is no surprise that China has hosted two WTTC summits within four years， as the country has become a powerful engine of growth for the world’s tourism industry. During recent summits， China has become a highlight with an increasing number of Chinese entrepreneurs invited to speak. From fast-growing tourism e-businesses to large-scale listed companies， the world tourism industry wishes to hear more from China.
Tourism is soon to become one of the world’s most important industries， and China will be a key driver in its development.
“In 2013 one third of global tourism growth came from Asia， and China was a major driving force. This phenomenal growth will be driven by increasing wealth among the Asian middle classes， particularly in China. The United Nations describe it as a historic shift， the likes of which have not been seen for 150 years，” said WTTC President & CEO David Scowsill.
According to WTTC data， in 2013 some 98 million Chinese tourists travelled out of the country. China leads the world in outbound tourist spending， outstripping the United States and Germany to be the world’s leading source of international tourists. Meanwhile it received about 50 million inbound tourists， with a total consumption of RMB 321 billion. It is estimated that this year inbound tourists will exceed 57.2 million and reach 115.52 million by 2024. In addition to the huge number of domestic tourists， China’s tourism industry has high potential. Promising Hotel Industry
China’s hospitality industry faces stiff headwinds as Chinese economy is under downward pressure. The government has increased scrutiny on official expenditures， in particular receptions and travel， as part of its anti-corruption campaigns. These disadvantages however do not stop transnational hotel groups’expansions in China.
“China has huge potential to develop its hospitality industry，” said Arne Sorenson， president and CEO of Marriott International Inc. Marriott expects to more than double in size in Asia through 2016， reaching a total of 330 hotels.Nearly half of them will be opened in China， with priority on the country’s second- and third-tier cities. This year Marriott will open new hotels in cities like Haikou of Hainan Province， Harbin of Heilongjiang Province and Zhengzhou of Henan Province. According to Arne Sorenson， affected by the government’s frugality policies， sectors like high-end catering， tobacco and wine are declining. However， China’s consumers， with stronger demands for tourism， are filling up this gap. Prospects for the hotel industry therefore remain bright.
“There is no change in our strategy in China， and we are very confident about the prospects for China’s hotel industry，” said Wolfgang Boettcher， Starwood Hainan Area Managing Director. Starwood Hotels and Resorts runs about 130 hotels in China， with another 118 hotels in the pipeline.
“Everybody is talking about China，”said Richard Solomons， CEO of InterContinental Hotels Group （IGH）. “China is IHG’s second largest market after the United States. The growth in China is amazing， as more and more Chinese people begin travelling.”
Focus on Quality
One effect of tourism development is that traditional group tours are losing ground to customized tours. Chinese tourists are becoming more sophisticated， and look forward to richer experiences and higher-quality services.
According to Clement Kwok， managing director and CEO of Hong Kong and Shanghai Hotels， Chinese consumers have changed their consumption habits and refined their tastes after greater exposure to the bigger world. Chinese tourists， who used to focus on material consumption， now pay more attention to cultural experience. High quality travel will play an important role in the sustainable development of China’s tourism market. Mr. Kwok hence concluded that China is not only a perfect market to promote high-end products， but also an ideal place to allow these products to evolve.