“After 2000, with increases in household consumption, travel is no longer a luxury for the few, but rather a consumption of necessity for the average Chinese…”. according to Chinese Premier Li Keqiang, speaking at the First World Conference on Tourism for Development held in Beijing last Thursday.

 

In a keynote address he said that Chinese tourists made more than 4bn domestic visits last year, with expenses on travel accounting for 10% of total household spending: “Over 120m outbound visits were made by Chinese tourists and China received 130m inbound tourists from abroad.

 

“A total of over 4 trillion RMB yuan in revenue was generated. Forecasts show that by 2020, the number of per capita travel times by Chinese tourists and the amount of tourism revenue will both double on the current basis.”

 

TOURISM: CHINA’S NEW GROWTH DRIVER

He added that the Chinese Government now regards tourism as a new driver of growth in China, although he admitted that it currently falls short of satisfying people’s demand, lacking ‘premium and creative tourist programmes and services’.

 

In an address that clearly signals the government’s intent to build its tourism industry from the inside out, Premier Keqiang said: “In the past five years, investment in tourism has grown by 40% annually to exceed one trillion RMB yuan last year. Modern day tourism integrates the primary, secondary and tertiary industries.

 

“THE GOVERNMENT’S TARGET IS TO LIFT 12 MILLION PEOPLE OUT OF POVERTY IN THE NEXT FIVE YEARS THROUGH DEVELOPING TOURISM.” CHINESE PREMIER LI KEQIANG.

 

“It is a new economy that increases the consumption and added value of agricultural products. It also drives the development of needed industrial goods. It is associated with more than 110 industries and contributes to more than 80% of businesses like catering, accommodation, civil aviation and railway passenger transportation. Booming tourism drives up other businesses.

 

“In 2015, direct contribution and aggregate contribution of tourism to China’ s GDP was 4.9% and 10.8% respectively. That said, tourism is not contributing as much to the economy in China as it does in many other countries. We have drawn plans to make tourism a major part of structural reform, supply-side structural reform in particular, to spur growth.

 

 

CHINA’S MAJOR INVESTMENT PLAN

“We will implement tourism promotion and investment promotion plans, increase market access for private capital and deepen external cooperation to provide more impetus for tourism to grow. We will improve the infrastructure for transportation facilities, scenic spots, self-drive tour camps and digital installations.

 

‘We will strengthen market regulation and oversight to offer richer, more convenient and safer travel experience to both Chinese and foreign tourists. Besides, we will encourage holistic tourism destinations development and the ‘tourism plus’ programme and vigorously develop rural tourism, industrial tourism, culture tourism, and seniors and health tourism.

 

“Those programmes, combined with the ‘Internet plus’ initiative, are designed to promote the integrated development of the primary, secondary and tertiary industries through tourism growth. To upgrade tourism will be a good way to improve the economy, both in efficiency and in quality.”

 

Premier Keqiang added that in 2015, China’s tourism industry directly employed 28m people, while it is estimated that the total number of jobs created – directly or indirectly – was 80m. He said that was equivalent to approximately 10% of all the jobs in the country. Tourism is the new game in town ‘within China’ as many have been warning for some time, as Premier Keqiang left the distinguished gathering in no doubt.

 

 

POVERTY ALLEVIATION FACTOR…

He said: “Tourism is a main avenue for poverty alleviation and eradication. Rural poverty alleviation is probably the biggest task for China if it is to become a moderately prosperous society in all respects. Most poor people in China live in former revolutionary bases, ethnic group-inhabited areas, border areas and poverty-stricken areas, where constraints hold back industrial and agricultural development.

 

“These places, however, tend to enjoy unique strengths for developing tourism, and many of them have in fact got rid of poverty as a result of tourism development. Tourism opens a door to the outside world. It broadens people’s horizon, improves their mind-set, lifts their spirit and contributes to social progress. The government’s target is to lift 12m people out of poverty in the next five years through developing tourism.

 

Turning to international horizons, Premier Keqiang added that the Chinese government highly values the role of tourism in facilitating cultural exchange. He said: “We have identified over 150 countries as approved destinations for Chinese tourists and have held ‘Year of Tourism’ activities with countries like Russia, the ROK, India and the United States.

 

“We stand ready to work with more countries to enhance tourism cooperation. Joint tourist activities of diverse forms may be organised for people to take part in, which will sow the seed of friendship among them.”

 

“FOR FOUR YEARS IN A ROW, CHINA HAS TOPPED THE GLOBAL LIST OF OUTBOUND TRAVELS. LAST YEAR, CHINESE TOURISTS SPENT MORE THAN US$200 BILLION ON OVERSEAS TRIPS.” CHINESE PREMIER LI KEQIANG.

 

He added that four years in a row China has led the global list of outbound travel with Chinese tourists spending more than US$200bn on overseas trips. He said: “To facilitate the development of tourism globally, the Chinese government proposes that international tourism cooperation programmes be carried out to foster a more convenient travel environment.

 

“Countries are advised to make visa policies easier, streamline entry procedures, open more direct flights, provide more professional and people-oriented services for sightseeing and shopping and act to protect the rights and interests of consumers.”

 

Interestingly, he also said that over the next five years, the Chinese Government will conduct 50 international tourism cooperation programmes with foreign countries, including programmes on tourism resources development and protection, expert consultancy in tourism planning, training of Chinese-speaking tour guides and management personnel and will offer 1,500 training opportunities in China for foreign countries.

 

 

IMPROVED FACILITIES FOR DUTY FREE SHOPPING

He also called on all countries to assume shared responsibilities to take effective measures to tackle emergencies, protect the safety of tourists and oppose terrorism. Acknowledging the positive role already played by the UNWTO, Premier Keqiang added: “Let us act to foster a freer, safer and more convenient and more comfortable travel environment for all people in the world.”

 

[‘Tourism, a Ship of World Peace and Development’, was delivered by Li Keqiang, Premier of the State Council of the People’s Republic of China at the Opening Ceremony of the First World Conference on Tourism for Development on 19 May 2016-Ed].

 

Meanwhile, in a separate address at the same event co-hosted by the China National Tourism Administration CNTA and the World Tourism Organization last Friday, Chinese Vice Premier Wang Yang called on G20 countries to relax visa restrictions, simplify entry and departure procedures.

 

He also advocated improved policies on customs clearance, duty free shopping, tax refunds and currency exchange to expand the tourism market and ‘add impetus to the world economic recovery’.