THE PRIVATE SECTOR WILL PLAY A PIVOTAL ROLE IN ACCELERATING THE FAST-PACED DEVELOPMENT IN CHINA’S TRAVEL & TOURISM

14/10/2005

China is the Fourth Fastest Growing Travel & Tourism Economy in the World

October 14, 2003 Shanghai - Today, the World Travel & Tourism Council (WTTC) presented an in-depth report to China's business community and Travel & Tourism industry.

The report contained economic projections for the growth of Travel & Tourism in China and a series of policy recommendations intended to maximize the potential of Travel & Tourism to China's economy. The presentation and discussion focused on the role of the Travel & Tourism industry in assisting government authorities in fulfilling the promise of Travel & Tourism in China.

At the event Jean-Claude Baumgarten, WTTC's President, said:

"The opportunities for Travel & Tourism in China are extraordinary. WTTC calls on the private sector to work with the government to develop plans for sustainable and profitable growth."

According to research conducted by WTTC, Travel & Tourism will be an enormous catalyst for future economic and social development in China and around the world. The report covers both international and domestic tourism. Some of WTTC's 2004 headline projections were:

Annual Number of Jobs Created Directly by T & T 13.6 million

Annual Number of Jobs Created Directly and
Indirectly by T & T 54.1 million

Travel & Tourism's Annual Contribution to
China's GDP RMB289.2 billion

Travel & Tourism Growth 33.6%

Travel & Tourism will make an extraordinary contribution to China over next 10 years. Some statistics from the report include:

Annual growth rate of Travel & Tourism 10.9%

Travel & Tourism's Annual Contribution to
China's GDP RMB 844.6 billion

Annual growth in Travel & Tourism's contribution to
Employment 3.8%

Annual Number of Jobs Created Directly by T & T 16.1 million

Annual Number of Jobs Created Directly and
Indirectly by T & T 65.8 million

Annual Growth in Visitor Exports 22.4%

In order for China to ensure that Travel & Tourism reaches its potential, WTTC's research pointed out that there is a need to create a closer working public-private sector partnership in all aspects of tourism planning and operation. Its principal recommendations for the private sector to achieve this partnership were as follows:

• Advise the central government on how to best position Travel & Tourism in its Executive structure, strategy and operations. The private sector needs to have a seat at the table or establish an advisory council so dialogue can take place on a regular basis
• Establish a China National Tourism Administration (CNTA) advisory board that provides regular high-level input into all strategic planning initiatives
• Serve as active members of a newly created public-private sector managed China Tourism Board, sharing expertise that will help China drive business into its cities, its resort areas, its airports and its beaches
• Establish and operate independent trade associations that will help build and grow the industry from within and communicate with the public sector those things it needs to do to help grow the industry from the outside
• Share market intelligence with the public sector without compromising competitive information, and help the government understand what information the industry needs in order to make intelligent commercial decisions
• Add two weeks of additional paid vacation that can be taken at the discretion of consumers and businesses to help spread the seasonality for Travel & Tourism and provide for a more stable and sustainable yearlong industry
• Help CNTA and the Chinese authorities understand the economic realities of infrastructure carrying capacity, as well as yield management concepts, and how they can be used proactively to maximize traffic flow and revenues
• Ensure the quality of the products and services by promoting transparent consumer rights and self-regulation of price and quality
• Assist the Chinese authorities with planning and prioritizing the development of transport networks, infrastructure, tourism destinations and construction.
• Advise the Chinese authorities on the best case practices associated with transitioning from state-owned enterprises to the market economy
• Establish an advisory role to assist a new National Convention Bureau in marketing and promotion
• Assist China in identifying best-case examples of regulatory law for the development and promotion of Timeshare
• Challenge CNTA to provide rigorous and accurate demand assessments and forecasts that justify business opportunities and investment in Western China
• Work with Chinese authorities to help them structure and organize exemptions from permanent residence status for Travel & Tourism workers
• Organize knowledge transfer from foreign workers to the resident community, through company organized training and education
• Contribute experience and expertise to the establishment of Travel & Tourism schools, universities and training programs
• Work with the government authorities to establish mechanisms, systems and policies to make card payment systems an everyday standard
• Join together with the CAAC and the CNTA to formulate a forward-looking, long-term aviation strategy and plan for China
• Inform and educate public officials in the methods and approaches used in other countries to attract greater and sustainable capital investment.

For Information and Photographs

In China:
Brion Tingler
8610 6443 6488 ext 345

In England:
enquiries@wttc.org

In the US:
Richard Miller
1 646 338 0300

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