The China National Tourism Administration will pilot a project
this year to select joint venture tour operators to handle some
outbound business.
It is the first time that the administration has decided to open
its outbound business to joint ventures and foreign investors.
Shao Qiwei, head of the administration, told a conference in
Beijing on Friday that it will "steadily promote" the pilot
project, and open the industry wider, but further details were not
immediately available.
Foreign tour agencies and joint ventures are currently allowed
to operate only inbound and domestic travel, and are barred from
outbound business, which is the most lucrative part of the
market.
Opening the outbound market is not part of China's commitments
to the World Trade Organization.
But the opportunities offered by outbound travel have attracted
many foreign operators to China, according to industry
insiders.
In recent years, a few foreign tour firms attracted by China's
huge potential have entered the country as joint ventures or solely
funded branches. They insist on keeping their business in China,
even though that means they earn little or have to suffer
losses.
Positive signs began to emerge last year, when the tourism
administration allowed Hong Kong and Macao-funded tour agencies to
cater to mainland tourists in eight provinces and regions bound for
the two special administrative regions, a decision that has not
adversely affected domestic Hong Kong and Macao tour operators.
"There is no need to worry that opening outbound business to
foreign firms may throw the market into disorder. Similar cases,
such as allowing in foreign banks, have proven this will not
occur," an industry insider said.
China's tourism sector is believed to have huge potential, as
the World Tourism Organization forecast it would grow into the
world's fourth-largest source of outbound tourists by 2015. By
then, 100 million Chinese will travel overseas annually.
Last year, 40.95 million Chinese traveled overseas, up 18.6
percent from 2006.
The administration forecast that the number of outbound
travelers is expected to increase 10 percent to 45 million this
year.
"As our holiday system is improving, China will develop into an
enormous tourist market. The outbound and domestic travel markets
will both develop fast," Shao said.
Chinese tourists' outbound travel destinations have expanded
from 20 in 2002 to the current 134 countries and regions.
The United States is the latest to open its door to China. The
first group of Chinese tourists are expected to make trips there
this spring.
(China Daily January 19, 2008)