Having successfully launched several new initiatives and
achieved many more milestones, including a visit to India by
President Hu Jintao in 2006 (designated the Year of
China-India Friendship), the two sides have designated 2007 as the
Year of China-India Friendship through Tourism.
As is well-known worldwide, the boom in the tourism industry
(including all the inflow and outflow of travelers and their
spending power) remains a major driver and one of the most
dependable indicators of high-level social development.
A tourism boom comes only with sustained economic growth
accompanied by infrastructure development and the creation of jobs
in new sectors and regions.
Especially in the case of China and India, the tourism boom is
expected to facilitate peace and friendship by raising mutual
awareness and enhancing mutual stakes. This also contributes to
sustaining both countries' internal stability and long-run
development.
However, while Chinese and Indian tourists can be seen around
the world, when it comes to visiting each others' countries, many
opportunities remain as yet unexplored.
Since 2004, China has been the world's fourth largest tourist
destination.
A report released last week, China Tourism Industry: New
Opportunities for Growth 2007, projects that China will become the
second largest tourism destination (next to the United States)
within a decade.
The World Tourism Organization (WTO) expects China to become the
world's No 1 tourist destination by 2020, if not earlier.
According to WTO, Chinese tourists now spend more than US$21.8
billion in traveling abroad, already at par with, if not slightly
higher than, that of the Japanese.
As for tourism, in 2006 the Chinese mainland is estimated to
have had more than 25 million foreign tourists and another 100
million visitors from Hong Kong, Macao and Taiwan. The Chinese
mainland is estimated to have earned about US$32 billion from these
visitors.
India, on the other hand, is estimated to have had more than 5
million foreign tourists in 2006 and earned more than US$5 billion
from tourism. These figures may seem small compared with China, but
the Indian tourism industry has been picking up momentum, promising
to grow much faster as the Chinese tourism growth rate stabilizes
in coming years.
India's Ministry of Tourism expects an annual tourism growth
rate of 10 percent, bringing in more than US$12 billion in foreign
exchange by 2012. Independent sources are also big on India.
Conde Nast Traveler ranked India as the fourth most
preferred travel destination and Lonely Planet placed it
among the top five destinations from 167 countries for 2006.
Against this backdrop, the China-India Year of Friendship
through Tourism can strengthen and accelerate India's tourism and
herald a new era of people-to-people goodwill. It can enhance
China-India friendship on a lasting basis.
But there remain several hiccups and India can learn several
lessons from the successes (and failures) of the China's tourism
industry.
The Federation of Hotel and Restaurant Associations of India
numbers the total hotel rooms at only 97,000. The association has
been asking the government to aim for an annual 10 percent increase
to meet tourism targets. India's Planning Commission projects that
India will need 160,000 rooms to accommodate 6 million tourists by
2010, and 300,000 rooms to accommodate 9 million tourists by
2020.
The government appears fully aware of this need and has made
plans for more hotel rooms a priority.
Failure to reach these targets threatens to make Indian hotels
costlier and of poor quality for their price, which largely
compromises India's competitiveness as a tourist destination for
all, including the Chinese.
This becomes a serious problem when countries like Thailand and
Vietnam are aggressively pursuing Chinese tourists while countries
such as France, Italy and the United States remain favorite
destinations for Chinese tourists.
The solution perhaps lies in both China and India exploring
their own unique selling points along with their mutual attractions
and interests.
China, for instance, has recently emerged as one of the top
destinations for Indians with small businesses, and more than 5,000
Indian students are currently studying in Chinese universities.
The total number of Indians in China has increased
exponentially. Indian medical students, particularly from the
province of Andhra Pradesh, seem to have redefined China-India
travel.
At the same time, given India's expertise in medical sciences,
the country has emerged as a medical travel destination for
international travelers. This can be one area to attract
health-conscious Chinese whose health services have become
expensive.
Such initiatives using their unique advantages can help
accelerate China-India tourism.
?
Another encouraging development is the reopening of the historic
Nathu La Pass between India and China in July 2006. The opening of
the third border pass between China and India raises hopes that it
will become a gateway for China-India tourism from Tibet to
Sikkim.
The Sikkim Chamber of Commerce aims to make this high altitude
area a trans-shipment hub like Singapore. By 2011, when Nathu La is
scheduled to be open for tourism, more than 300,000 Chinese are
expected to travel through the mountain passes.
Beyond the statistics, the flow of people, goods and services
across the mountain borders will open several new avenues for
building mutual confidence and ensuring tranquility in these remote
border areas. The new tourism will also bring prosperity for the
isolated communities on both sides of the Himalayan divide.
This tourism will facilitate pilgrimages by Indian Hindus and
Sri Lankan Buddhists to Mount Kailash and Mansarovar in China's
Tibet and allow Tibetans to freely visit Buddhist monasteries on
the Indian side.
And, finally, it would be natural that the two countries
cooperate in building India's infrastructure.
China is likely to have large construction capacity and
expertise freed up after completion of the Three Gorges Dam and the
2008 Olympics construction, while India's sustained growth rate of
8 percent will enable it to use its increasing resources for
building infrastructure.
The future could see China and India launching joint ventures in
airports, roads and hotels that enhance India's competitiveness as
a tourist destination.
Some of these trends can already be seen, creating a promising
backdrop for the Year of China-India Friendship through Tourism and
beyond 2007, building ongoing shared interests in promoting each
other through tourism.
Dr Swaran Singh is associate professor at the School of
International Studies, Jawaharlal Nehru University, New
Delhi.
(China Daily January 18, 2007)
