Tourism in China

by

Franziska Pfund

November, 26th 2002

Abstract 

Since the adoption of the policies of reform and the opening to the outside world, China’s tourism has entered a stage of rapid development. Being a country rich in tourism resources, it has become a demanded destination in Asia for tourists from all over the world, but also domestic tourism is growing vigorously. 

This paper is divided in four parts. Chapter one will give an insight into important factors concerning China’s tourism industry and explain its economical and political situation. Besides, investments in tourism will be explained. Chapter two illustrates China’s tourism market, considering tourism operation and management, crucial regulations, infrastructure development but also human resources as well as media and advertising. Chapter three points out the impact of the World Tourism Organization on China’s tourism industry and illustrates through which projects the organization has helped to further development of tourism. In chapter four the main points will be summarized.

Table of Contents

1. FACTS & FIGURES ABOUT CHINA  3
1.1. GENERALITIES  3
1.2. INHABITANTS  3
1.3. POLITICAL & ECONOMIC SITUATION  3
1.4. CHINESE INVESTMENTS IN TOURISM  4

2. THE CHINESE TOURISM MARKET  4
2.1. GENERAL DEVELOPMENT  4
2.1.1. Inbound Tourism  6
2.1.2. Domestic Tourism  8
2.2. POLICIES & REGULATIONS  9
2.3. TOURISM OPERATION AND MANAGEMENT  11
2.3.1. Hotels  11
2.3.2. Travel Organizations & Services  12
2.3.3. Quality Supervision Management  13
2.4. INFRASTRUCTURE DEVELOPMENT  13
2.4.1. Civil Aviation  13
2.4.2. Railways  14
2.4.3. Highways  14
2.4.4. Waterways  14
2.5. HUMAN RESOURCES  15
2.6. MEDIA & ADVERTISING  15

3. WORLD TOURISM ORGANIZATION  16
3.1. MISSION  16
3.2. PROJECTS IN CHINA  16
3.2.1. Technical Assistance Missions  16
3.2.2. Technical Cooperation Projects  17
3.2.3. Hotel Classification System  17
3.2.4. World Trade Centre Staff Development  18
3.2.5. Tourism Master Plans  18
3.3. SEMINARS AND CONFERENCES  18

4. SUMMARY & FUTURE PERSPECTIVES  20

Bibliography  22

Table of Figures
Figure 1: Tourist Arrivals 1978 to 2000 ... 5
Figure 2: Countries of Origin in 2000 ... 6
Figure 3: Foreign Exchange Revenue ... 6
Figure 4: Foreign Tourists from 1996 to 2000 ... 7
Figure 5: Top Tourist Generating Countries ... 7
Figure 6: International Travel Revenue 1996 to 2000 ... 8
Figure 7: Total Number of Domestic Tourists 1996 to 2000 ... 8
Figure 8: Number of Star-Rated Hotels 1999 to 2000 ... 11

1. Facts & Figures about China

1.1. Generalities

China, the third largest country in the world, is situated in the eastern part of the Asian continent at the west coast of the Pacific Ocean. It is a nation with a long history behind it. Dynasty after dynasty, the concept of "Central Kingdom" evolved since the country has all the things an ideal realm should possess: towering mountains, beautiful lakes and rivers, awe-inspiring temples and monasteries, fascinating statues and much more. It comes out in front in the world in scenic spots and historical sites, spectacular landscapes, and colorful and varied national customs. As the wheel of history brings in the 21st century, China is changing - it is changing into a prosperous, powerful and yet peaceful country.

1.2. Inhabitants

China is known to the world at large as a country whose area is as vast as its inhabitants. China’s population counts about 1.3 billion people and represents consequently a quarter of the world’s population.¹ China’s population is distributed unevenly with more than 300 people per square kilometer in the east and about 40 people per square kilometer in the west.²

1.3. Political & Economic Situation

China was established in 1949 as socialist People’s Republic. Since 1978 China is realizing profound transitions. The reform from an isolated planned economy to a social market economy is certainly the most important. The core is an economic opening towards the world in order to achieve an increase of exports and to receive capital assistance from abroad for being able to sustain a modernizing of the economy.³

Furthermore, during the last ten years the Central Government’s economic policy switched from an emphasis on heavy industry development to light industry, as well as the promotion of a service sector including that of tourism.⁴

1.4. Chinese Investments in Tourism

In 2000, for the first time, the State brought the construction of tourist infrastructures in line with the state debt investment plan. The State had allocated state debt funds of US$ 150 million to 113 projects.⁵

The state does especially invest in western China, as it has more tourist resources than eastern or central China, but it is also a rare treasure-house for tourism in the world. But most of the scenic spots in western China are situated in the underdeveloped or poverty-affected areas. Therefore China’s government has decided to allocate US$ 92 million from the Treasury bonds issued in 2000 for the construction of auxiliary tourist facilities in the western region. That includes highways, promenades, water and power supply systems as well as sewage and garbage treatment plants. The money will also be spent on preserving the natural ecology and historical and cultural legacies, providing tourist information services and installing safety facilities.⁶

2. The Chinese Tourism Market

2.1. General Development

[....]

1 http://www.china-club.de/english/chinaguide/ueberblick.htm#popu ; German National Tourist Office, Broschüre ‚Marktinformation China‘, p.6;

2 http://www.china-club.de/english/chinaguide/ueberblick.htm#popu

3 German National Tourist Office, Broschüre ‚Marktinformation China‘, p.7

4 http://www.world-tourism.org/regional/east_asia_and_pacific/countries/china.htm

5 http://www.cnta.gov.cn/lyen/2policy/tourist.htm

6 Business Alert – China, July 2000