China Tourism Rises amid Economic Slowdown

2015 has become a past tense. Over the course of the year， a lot happened in Chinas travel industry. “New normal” became the main theme for Chinas economic development last year. However， the economic slowdown seems to have no influence on tourists plan to travel overseas， as the number of outbound tourists still surged during holidays.

From new rules regulating touristsbehaviors to the removal of Shanhaiguans 5A rating， there was an everprogressing trend towards more civilized and standardized tourism. From Britains new visa policy to Chinese tourists， to a bouncing back of inbound travelers， there was a boom in Chinas tourism exchanges with the outside world. Over the year， there were many milestones that helped shaped the travel industry

New Driver for Tourism

China is the worlds largest outbound market since 2012， according to Madrid-based United Nations World Tourism Organization （UNWTO）. In 2013， Chinese tourists spent 129 billion U.S. dollars abroad， more than any other source market in the world， UNWTO said.

In 2014， the number of Chinese tourists traveling abroad increased by 19.5% year on year to 109 million， nearly 13 times the level in 1998， topping a threshold of 100 million for the first time in history， according to NTA data.

“Even one individual tourists poor behavior will have global impacts，” said Yu Ningning， president of the China International Travel Services Co.， Ltd.，“The tourist industry and travellers should protect the global image of Chinese people in accordance with law.”

According to a recent survey conducted by COTRI， more and more tourists from second- and third-tier tourists show great enthusiasm to travel overseas， becoming the new driver for the outbound tourism.

The “COTRI Market Report” identifies four cities as first-tier cities， namely， Beijing， Shanghai， Shenzhen， and Guangzhou， and 12 Chinese cities as second-tier， namely， Chengdu， Chongqing， Wuhan， Tianjin， Xangzhou， Xian， Suzhou， Nanjing， Dongguan， Xiamen， Kunming， and Qingdao. Chinas remaining cities were labeled as third-tier or lower.

According to COTRI report， the most favored European destination by second- and third-tier tourists is France， which has long been a known dream destination for Chinas affluent travelers.

Yet it seems that first-tier travelers are moving on because France sees 40% of its tourists coming from second-tier cities， and just 31% are coming from first-tier. Overall， Frances capital is gaining appeal and consistently tops travel wish lists for affluent Chinese， including Huruns Chinese Luxury Traveler 2015 report. The number of bookings made through Chinas leading online tourism company， Ctrip， to Paris during Golden Week tripled compared to 2014.

Meanwhile， the second- and thirdtier travelers that do stay in Asia are more likely heading to Southeast Asian countries like Thailand and Malaysia， both of which see a higher proportion of second- and third-tier tourists than first-tier. The number of direct flights available from second- and third-tier cities to a variety of cities in Thailand is the highest in Southeast Asia， with most flights coming out of Chengdu， Wuhan， and Chongqing. Still， Southeast Asia isnt doing great overall in terms of attracting Chinese tourists—the number decreased from 6.4 million in 2013 to 6.2 million in 2014， according to data.

Hong Kong， a place that has been struggling with an overall drop in visitors from the mainland， has seen a split in the number of travelers from firstand third-tier cities （around 40% each）， with second-tier city visitors accounting for less than 20%. Macau also shows a similar tourism pattern， except that its number of third-tier travelers is much higher， accounting for nearly half of all of its Chinese mainland visitors.

Seeing the huge potential in Chinese tourism development， many European countries are seeking to attract Chinese tourists， including the UK.

British Prime Minister David Cameron announced new visa policy for Chinese visitors during the state visit of President Xi Jinping in October.

Previously， Chinese visitors were is- sued a six-month tourist visa that costs 85 pounds （$131）. Under the new rules， which start in January， the visa will provide multiple entries to the UK over two years without the need for extra paperwork or expenditure.

Cameron also announced his intention to go further with plans for a new 10-year multi-entry visa for Chinese tourists at no extra cost.

Changes also include expanding the UKs mobile fingerprinting service to 50 Chinese cities from the present nine. Besides， it is expected to see an increase in the number of visa application centers.

“China is becoming one of our fastest-growing tourism markets， so making it easier and more convenient for Chinese visitors to come to the UK is extremely important，” Cameron said.

Inbound Tourism Renounces

Chinas struggling inbound tourism industry has shown signs of rebounding. According to a report released on December 7 by the China Tourism Academy， a think tank under the China National Tourism Administration， the total visits made by overseas tourists in the 10-month period surpassed 100 million， an increase of 4.4% compared with the same period in 2014.

Total revenue from inbound tourism in the first 10 months reached $47.4 billion， an increase of 0.9%， with foreign visitors spending $28.5 billion.

According to a report released on December 7 by the China Tourism Academy， a think tank under the China National Tourism Administration， the total visits made by overseas tourists in the 10-month period surpassed 100 million， an increase of 4.4% compared with the same period last year.

Total revenue from inbound tourism in the first 10 months reached $47.4 billion， an increase of 0.9%. Foreign visitors spent $28.5 billion.

“The continuing downward trend of inbound tourism has been contained， and China will see positive growth both in inbound tourist visits and expenditures by the end of 2015，” said Dai Bin， director of the China Tourism Academy.

Dai said Chinas inbound tourism industry has faced many challenges after the financial crisis.

“The ability of some countriestourists to consume is still not as strong as before，” said Dai. “Besides， China is facing a more competitive global tourism market now. Other countries are making efforts to attract tourists by removing visa barriers and providing diversified tourism products.”

Even so， China has seen growth in visits by foreign tourists. According to the China National Tourism Administration， visits by foreign tourists from 2008 to 2014 enjoyed an average annual growth rate of 1.21% to 26.36 million.

“And this is thanks to the efforts of tourism authorities， as well as travel service providers，” Dai said. “China tourism authorities have enhanced their promotions internationally， introduced favorable visa polices and regulated the tourism market to provide a friendly environment for overseas visitors.”

Dai said， he was optimistic about the development of inbound tourism in the coming five years.

“Tourism in China — inbound， outbound and domestic — is approach- ing a golden period of development，”Dai said. “First， China， as home to many world cultural and natural heritage sites， has a very strong base for development. In the past 35 years， many scenic spots， including the Palace Museum， Great Wall and Terracotta Army， have an established reputation among overseas tourists.”

“Second， tourism is a pillar industry in Chinas economy. From the central level to the local level of government， great importance has been attached to inbound tourism development，” Dai said. “After decades of development， we also have mature market players to provide medium-range and high-end tourism products for overseas tourists， not to mention the opportunities brought by strategies and global cooperation such as the Belt and Road Initiative.”

Chinas travel agencies also step efforts to enhance their competiveness in the domestic and overseas markets. Ctrip and its rival Qunar， the secondlargest online travel agency in China， have agreed to a share swap and partnership that will create Chinas biggest online travel service.

Under the deal， Ctrip will own roughly 45% of Qunar， while Baidu， which owns 20% of Qunar， will take a 25% stake in Ctrip. The two companies will also combine products and services.

“Its good for both companies，”said Henry Guo， managing director at Summit Research Partners LLC. “Competition between the two companies has hurt both of them in terms of profit-ability as theres been some irrational pricing.”

The two companies have a combined market value of $15.6 billion， according to data. Ctrip had a market valuation of $10.6 billion， while the smaller Qunar is valued at $5.2 billion， according to data.

Efforts to Promote Civilized Tourism

On the other side， China rolled out new regulations to promote civilized tourism. According to industry standards issued by the China National Tourism Administration that came into effect on May 1， tour guides and leaders have the right to report on bad behaviors to authority.

The regulation comes amid growing concern about the bad manners of Chinese tourists both at home and abroad.

Tourists will be blacklisted for uncivilized behaviors such as acting antisocially on public transport， damaging private or public property， disrespecting local customs， sabotaging historical exhibits or engaging in gambling or pornographic activities.

The new standards add more responsibility on tour guides， who are required by law to remind tourists of civilized behaviors， including the use of toilets. Tourists should be reminded to keep public facilities clean， use public products appropriately， and not to occupy the special facilities for the disabled.

From its first national tourism law in 2013 to todays industry regulations， China is the first country in the world to include tourists behaviors in laws and regulations.

China rolled out its first national tourism law in 2013 aiming to promote sustained industry growth. Tourist behavior is singled out in the law， which asked tourists to observe public order and respect social morality， respect local customs， cultural traditions and religious beliefs， care for tourism resources， protect the ecological environment， and abide by the norms of civilized tourist hebaviors.

“We would like to shoulder this responsibility， since it can help build a good image of Chinese tourists，” said Shen Zheyong， a tour guide with Beijing Caissa International Travel Service Co.， Ltd.