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Overcoming China’s tourism deficit
By Miao Lu | chinawatch.cn | Updated: 2019-02-01 16:12

The ease of traveling abroad for adventure, relaxation and knowledge is a joy of our globalized world. More people are traveling than ever before, with 1.4 billion international tourists arrival in 2018, according to the UN World Tourism Organization, or UNWTO.

Chinese outbound tourists account for a large and growing proportion of these annual flows. However, the number of tourists visiting China lags far behind. This widening deficit calls for steps to boost inbound tourism. This is the key finding of a new report by the Center for China and Globalization, or CCG, China’s leading nongovernmental think tank, and CTrip, a leading travel service provider. In addition to exploring the causes of China’s tourism deficit, the report also offers recommendations to reduce the imbalance.

Tourism plays a crucial role in the world economy, generating 10 percent of global GDP and one out of every 10 jobs. International tourism continues to develop and diversify, making it one of the world’s fastest growing industries. As well as economic benefits, tourism serves as a vector for cross-border human interaction and understanding. As Mark Twain famously observed, travel is fatal for narrow-mindedness and prejudice.

In China too, tourism acts as an invisible pillar industry driving growth and investment. It has brought gains to underdeveloped areas and related industries such as construction, agriculture and services. Appropriately managed tourism is a boon for sustainable development, incentivizing and funding the protection of culture and the environment.

China’s tourism shortfall

With rising incomes and easier access to other countries, China’s outbound tourism has grown rapidly. According to the National Bureau of Statistics, Chinese nationals made 135 million outbound trips in 2016. Subtracting trips to Hong Kong, Macau and Taiwan, the number of outbound trips by Chinese mainland residents comes to around 68.4 million. This was an increase of almost one-fifth over the previous year and continues the pattern of double-digit year-on-year growth for Chinese outbound tourism.

Meanwhile, in the same year, China recorded 28.1 million tourist arrivals, leaving a tourism deficit of 40.3 million trips. This was a deficit increase of 8.62 million, or 27.3 percent, from 2015.

In part, the growth of this deficit reflects more Chinese citizens having the means to travel abroad. Of course, the fact that more people can travel, explore and learn more about the world is to be celebrated.

At the same time, the widening gap also highlights how China, a country endowed with exceptional natural and cultural attractions, still punches below its weight when it comes to attracting international tourists.

According to the UNWTO, in 2016, China ranked 10th regarding tourist arrivals, below Turkey and Thailand. Even accounting for China’s large contribution to outbound tourism (over a quarter of all visits to Thailand), this represents an underperformance. In that year, for example, the number of British tourist arrivals in Thailand was around 1 million, compared to 600,000 for China.

Overcoming the gap

To help close the tourism deficit and reap the benefits of tourism, CCG’s report outlines recommendations for China to fulfill its vast potential as a world-class destination. These proposals can be summed in the “three Ps” of product, policy and promotion.

Product comes first, the essence of which is experience. Operators should make better use of China’s diverse attractions, creating tailored seasonal packages for year-round tourism. Getting the experience right for international visitors comes down to a combination of “hardware” and “software.” In recent times, China has made great strides forward in the “hardware” of tourism, such as transport, public facilities and accommodation. However, there is still room for improvement, in particular, a greater emphasis on human-centered design and the environment. More important, we should deepen our understanding of what people need and refine the “software” of services and systems for tourists, particularly for tourist hotspots, internal travel and online portals.

On the policy side, more should be done to popularize China’s innovative visa schemes. These include 144-hour visa-free transit, visa-free policies for tour groups and 30-day visa-free stays in Hainan province for selected nationalities. The report also calls for deeper integration of the State Immigration Administration to coordinate work for the common goal of attracting international tourism.

Last comes promotion. Even the most sweet-smelling wine will be missed if tucked away deep in an alley. China has a wealth of tourist gems that remain unknown to many abroad.

To overcome this knowledge gap, a more strategic and professionalized approach is needed. This means better coordination of international marketing at the government, industry and consumer levels. In particular, tourism companies are well-equipped to connect with international audiences and should be encouraged to do so. These promotion efforts should reflect the regional diversity and attractions of China that lie beyond the Great Wall.

We should also leverage alliances and brand ambassadors, such as celebrities and key opinion leaders, who play such an important role in our information age.

The upcoming Beijing 2022 Winter Olympics is a golden opportunity to boost inbound tourism. With our concerted efforts, once winter comes, a spring blossom for year-round inbound tourism will not be far behind.

Miao Lu is vice president of CCG. The views expressed do not necessarily reflect those of China Watch.

All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.

The ease of traveling abroad for adventure, relaxation and knowledge is a joy of our globalized world. More people are traveling than ever before, with 1.4 billion international tourists arrival in 2018, according to the UN World Tourism Organization, or UNWTO.

Chinese outbound tourists account for a large and growing proportion of these annual flows. However, the number of tourists visiting China lags far behind. This widening deficit calls for steps to boost inbound tourism. This is the key finding of a new report by the Center for China and Globalization, or CCG, China’s leading nongovernmental think tank, and CTrip, a leading travel service provider. In addition to exploring the causes of China’s tourism deficit, the report also offers recommendations to reduce the imbalance.

Tourism plays a crucial role in the world economy, generating 10 percent of global GDP and one out of every 10 jobs. International tourism continues to develop and diversify, making it one of the world’s fastest growing industries. As well as economic benefits, tourism serves as a vector for cross-border human interaction and understanding. As Mark Twain famously observed, travel is fatal for narrow-mindedness and prejudice.

In China too, tourism acts as an invisible pillar industry driving growth and investment. It has brought gains to underdeveloped areas and related industries such as construction, agriculture and services. Appropriately managed tourism is a boon for sustainable development, incentivizing and funding the protection of culture and the environment.

China’s tourism shortfall

With rising incomes and easier access to other countries, China’s outbound tourism has grown rapidly. According to the National Bureau of Statistics, Chinese nationals made 135 million outbound trips in 2016. Subtracting trips to Hong Kong, Macau and Taiwan, the number of outbound trips by Chinese mainland residents comes to around 68.4 million. This was an increase of almost one-fifth over the previous year and continues the pattern of double-digit year-on-year growth for Chinese outbound tourism.

Meanwhile, in the same year, China recorded 28.1 million tourist arrivals, leaving a tourism deficit of 40.3 million trips. This was a deficit increase of 8.62 million, or 27.3 percent, from 2015.

In part, the growth of this deficit reflects more Chinese citizens having the means to travel abroad. Of course, the fact that more people can travel, explore and learn more about the world is to be celebrated.

At the same time, the widening gap also highlights how China, a country endowed with exceptional natural and cultural attractions, still punches below its weight when it comes to attracting international tourists.

According to the UNWTO, in 2016, China ranked 10th regarding tourist arrivals, below Turkey and Thailand. Even accounting for China’s large contribution to outbound tourism (over a quarter of all visits to Thailand), this represents an underperformance. In that year, for example, the number of British tourist arrivals in Thailand was around 1 million, compared to 600,000 for China.

Overcoming the gap

To help close the tourism deficit and reap the benefits of tourism, CCG’s report outlines recommendations for China to fulfill its vast potential as a world-class destination. These proposals can be summed in the “three Ps” of product, policy and promotion.

Product comes first, the essence of which is experience. Operators should make better use of China’s diverse attractions, creating tailored seasonal packages for year-round tourism. Getting the experience right for international visitors comes down to a combination of “hardware” and “software.” In recent times, China has made great strides forward in the “hardware” of tourism, such as transport, public facilities and accommodation. However, there is still room for improvement, in particular, a greater emphasis on human-centered design and the environment. More important, we should deepen our understanding of what people need and refine the “software” of services and systems for tourists, particularly for tourist hotspots, internal travel and online portals.

On the policy side, more should be done to popularize China’s innovative visa schemes. These include 144-hour visa-free transit, visa-free policies for tour groups and 30-day visa-free stays in Hainan province for selected nationalities. The report also calls for deeper integration of the State Immigration Administration to coordinate work for the common goal of attracting international tourism.

Last comes promotion. Even the most sweet-smelling wine will be missed if tucked away deep in an alley. China has a wealth of tourist gems that remain unknown to many abroad.

To overcome this knowledge gap, a more strategic and professionalized approach is needed. This means better coordination of international marketing at the government, industry and consumer levels. In particular, tourism companies are well-equipped to connect with international audiences and should be encouraged to do so. These promotion efforts should reflect the regional diversity and attractions of China that lie beyond the Great Wall.

We should also leverage alliances and brand ambassadors, such as celebrities and key opinion leaders, who play such an important role in our information age.

The upcoming Beijing 2022 Winter Olympics is a golden opportunity to boost inbound tourism. With our concerted efforts, once winter comes, a spring blossom for year-round inbound tourism will not be far behind.

Miao Lu is vice president of CCG. The views expressed do not necessarily reflect those of China Watch.

All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.