China’s tourism industry is one of the most lucrative industry in the world. Since the Chinese economic reform in the late seventies, tourism has become a rapidly expanding sector and a great asset to the domestic economy. As the movement restrictions got eased when the Chinese middle class emerged, this field was an important contributor to create jobs and generate prosperity across the country.
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China is Becoming the first Largest Tourism Economy
Over the past decade, China was the fastest-growing market for tourism in the world and it has everything it takes to stay in that leading position. As for any other sector, China benefits from a huge market, but the tourism industry is the only one who can offer economic, social, cultural, environmental, and heritage value at the same time. The opportunities are numerous and the investments are really profitable, especially during the Chinese touristic peak seasons that are the “Golden weeks” (during the National Day Holiday and the Spring Festival). The tourism industry is thus such a promising and lucrative sector that represents a big part of the country’s economic growth. It even already outnumbered other industries such as banking and automobile. For example, the travel and tourism trade surplus was $10.2 billion in 2016. So opportunities to come for tourism-related companies are rather big and could be really flourishing thanks to a good use of the Chinese digital market.
With 52 sites, China is the second country in the world that has the most places classified as World Heritage sites by UNESCO. Thanks to the hugeness and diversity of its country, it can provide every traveler with the endless opportunity of touristic attraction: historic sites, temples, national parks, economic hot spots… The country overflows with beautiful historical, cultural and natural sceneries. It, therefore, became one of the favorite travel destinations for many of the neighboring countries. Though outbound tourism industry is experiencing the biggest growth and domestic tourists are still the biggest contributor to this sector’s success, China is on the right track to conquer the whole world.
China develop a new era for China’s tourism market
As it has been increasing for many years non-stop already, this tendency shouldn’t stop this year and China’s tourism revenue is expected by the nation’s top tourism authority to grow bigger again. In a recent report, the China National Tourism Administration (CNTA) declared 2018 as “Beautiful China-Year of Region-based Tourism”. So China is not only relying on its already strong touristic attraction, they are also willing to create a whole new era for China’s tourism market, hoping to create a new kind of tourism and fulfill new achievements. Following this goal, the CNTA imposed four new tasks on every Chinese locality. Here they are:
Create and promote good activities
In order for the market to be full, balanced and sustainable, localities are expected to design activities that would please any type of tourist. But not only should they create it, they also need to promote it and raise tourists’ interest as much as possible.
Fit market demand
Localities should be able to meet and satisfy the expectations and the needs of any tourist, whether he is a Chinese or a foreigner. Thus, improvements have to be done toward tourism products and services, as they should be enriched, customer-oriented and of a better quality.
Improve publicity’s efficiency
Publicity is already largely used in China, but work is still to be done. Localities are encouraged to put great efforts through every platform available, especially professional institutions and media. So that publicity can be as efficient as it could be.
Develop inbound tourism
Every locality has to promote itself by taking advantage of the “Beautiful China” year to improve its image and maximize their visibility toward every potential tourist in the world. China’s touristic influence and attraction are aimed to be at its highest.
Over 1 trillion RMB generated by the Chinese tourism industry
The forecast is thus really optimistic, as China’s tourism revenue is definitely expected to rise. The CNTA even predicts an increase up to 10 percent year-on-year. Moreover, figures had revealed that the Chinese had overtaken Americans to become the highest spenders on travel. The tourism industry had therefore generated trillions of RMB in revenue. As more than three-quarters of the population is predicted to be a part of the middle class by 2022 and nearly 150 million visits are expected for inbound tourism in this coming year, this sector will without a doubt keep its tendency in good shape. Other signs are also really encouraging for this market’s future, such as the drop in flight tickets’ prices, the visa restrictions’ easing…
Therefore, it is a rapidly expanding sector offers many opportunities. The Shanghai Pilot Free Trade Zone is a proof of the CNTA’s intention to open up the Chinese tourism industry, which has so much to offer to foreign investors. Especially in cities like Beijing, Shanghai or Guangzhou that are ranked as the top Chinese tourist cities in terms of total revenue.
The inbound market there is actually highly promising, as more and more tourists express a strong demand for innovative, service-oriented and quality packages. Yet, most of the travel operators rely mostly on social media to appeal to their customers. Though it might be efficient in the West, one should not forget that China is a whole other market. Even if it is not well-known from the rest of the world, it is big enough to live by himself.
Entering their local market through their social network (Baidu, WeChat, Weibo) is thus the only way to succeed in China. However, it is relatively different from what we usually know and their social networks can appear hard to use, which makes their market look like it is hard to enter.
Call on a specialized agency’s help is hence a smart investment to brand and market your company.
If you need any help with that, Gentleman Marketing agency is a Shanghai-based company that can give you visibility in the Chinese market. You can check our website to contact us or any further pieces of information.