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China Travel Service (CTS), TUI Group and Martin Buese China Limited have set up a joint venture in order to explore China's tourism market.
Foreign capital will account for 75 percent of the joint venture shares.
China's travel agencies are facing restructuring, and cooperation with foreign capital will help Chinese agencies to develop rapidly, said Zhang Xiqin, vice director of China National Tourism Administration (CNTA).
The three parties will combine inbound and outbound tourism according to each company's capacity.
TUI can increase sales via the CTS network and attract more foreigners and CTS can learn from the advanced experience by the alliance, said Gong Wanchun, CTS general manager.
The recovering global economy and China's position in the Asian economy will provide good opportunities for tourism, and TUI is willing to enter the market by choosing the right local partner, said Martin Buese, CEO of TUI China Travel Company.
CTS has nearly 300 offices throughout China. With yearly turnover reaching 22.4 billion euros (US$20 billion), TUI has 81 wholesalers, 3,700 retailers, 287 hotels and 88 aircrafts worldwide.
Foreign companies have been allowed to control or solely own travel agencies in China since July this year. Experts said the new policy will help enhance the overall level of Chinese travel agencies.
(People's Daily September 9, 2003)
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