china ready for new prospect for tourism development

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Page 1: China ready for new prospect for tourism development

ViuwpoinrlRrport

0 As the trend is increasingly toward man-made attractions. the import- ance of natural and cultural re- sources should be emphasized, together with protection.

0 Attractions cannot stand alone. More networking and therefore greater cooperation between attractions - owners and marketers - will be needed.

0 Attractions predictably will be more difficult to establish and man- age in the future, for many reasons-especially increased tech- nology and shifts in markets.

l Rather than attractions remaining

constant. they will continue to multiply due to increased stimula- tion of ‘entrepreneurship’ and creativity on the product side and to changes in markets on the de-

mand side. l Attractions, to be successful in the

future, will need to segment their markets. This will need to be re- flected in what is offered, how it is managed. and how it is promoted.

0 because of geographical and re- source differences and because of different markets, new destinations will emerge, and some will fade.

0 It will be increasingly important to change from marketing attractions

as things, to attractions as poten- tially satisfying experiences.

C/are A. Gunn, Professor Recreation and Parks Department

Texas A&M University Texas, USA

Notes This viewpoint is based on a speech made by Clare Gunn at the Travel America National Conference and Showcase, orga- nized by the Travel Industry Association and held on 13 September 1984 in Dallas, USA.

‘John Naisbitt, Meg&rends, Warner books, New York, 1982. ‘Ibid.

Report

China ready for new prospect for tourism development

Great strides have been made in tourism development in PI? China since 1978 with the shift in emphasis from political ideology to the economy. The failure of the Chinese government to recognize the significance of tourism to the economy has led to inadequate provision of tourist services and accommoda- tion. The State Administration for Travel and Tourism (SATT,) has recently produced a report aimed at developing a new prospect for Chinese tourism. Zhang Guangrui, Assistant Fellow of the Institute of Finance and Trade Economics, brings us up-to-date with the state of tourism in China.

China’s tourism industry has advanced significantly since 1975 when a historic decision was made at the third Plenary Session of the 11th Congress of the Communist Party of China (CPC)--- the State and Party were to concen- trate their efforts more on the eco- nomy and less on political ideology.

In 1983, China received over 9 477 000 visitors from 163 countries and regions of the world, who came to China for a holiday, to meet their relatives and/or friends, or to partici- pate in business, sports, scientific, or cultural exchanges. The figure was four times that of 1978 (1 809 200) but

still only represented 3.3% of the ‘world total (286 million international tourists). Between 1978 and 1983 the number of non-Chinese tourists in- creased by 280.2% from 229 600 to 873 000. Arrivals of overseas Chinese and compatriots from Hong Kong, Macao and Taiwan, increased by 444.7% from 1 579 600 to 8 604 000. The total revenue from international tourism increased by 261.5%. from US% 260 million to US$ 940 million, over the same period. However, this represents only 0.94% of the world figure of over US% 100 000 million.

Meanwhile. China’s domestic tour-

TOURISM MANAGEMENT June 1985

ism has increased much faster than expected. The policy for domestic tourism has been one of ‘no en- couragement’ because of the limited facilities and transportation capacity. As a result, no reliable data have been collected; there are no universally agreed scientific definitions which would make it possible to compile tourism statistics; and, until a short while ago, there was not even any national organization in charge of domestic tourism. But this rapid growth is borne out by the facts: eg in 19S2, about 55 million domestic tour- ists visited the Beijing parks; and Hangzhou parks received 22 million

visitors. Wuxi, the tiny city with 500 000 residents in its city proper along the Grand Canal, had six million domestic visitors in 19D---double the figure for 1980. According to some surveys and statistics in Shanghai, 293 997 domestic tourists were dealt with by the travel services; this figure represented 12% of the total domestic tourists among Shanghai residents. ie a possible 2.5 million people in Shan- ghai (equivalent to 20% of the city’s population) travelled away from home.

Whether or not domestic tourism is encouraged, it continues to increase.

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Page 2: China ready for new prospect for tourism development

Report

Efforts must be made by the Chinese tourist departments to meet the changing situation.

China’s political and economic situations are getting better, and the tourism industry is promoted by the

current policy of opening up to the outside world. Up until 19S3, there

were 1113 places open to foreigners. and overseas tourists can visit some 30 cities without travel permits.’ Some preferential treatment has been re- ceived by overseas Chinese and com- patriots from Hong Kong. iClacao and Taiwan, travelling to and within the mainland of China. In 198-t the Cen- tral Committee and the State Council

decided to continue the open policy by opening up 11 coastal ports to the outside world.’ This decision will give a tremendous boost to China’s tourist

trade. in the past few years. China has

produced several new tourist facilities, provided trained tourist trade person- nel, and obtained much valuable ex- perience. But for several reasons the tourist departments are still unable to keep pace with the growth of the

tourism industry:

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they underestimate the rapid growth of China’s tourism, in par- ticular domestic tourism, and the accompanying problems; they occupy themselves with the daily routine instead of attending to the building and improvement of tourist attractions and infrastruc-

ture: investment in building tourist facili- ties has been provided exclusively by the Chinese state authorities who have not realized the benefits to be obtained by mobilizing the enthusiasm and initiative of the localities, departments, collectives, and even individuals; the tourist departments pay little attention to the market surveys and future estimates-there is inadequ- ate long-term planning for national tourism development; they have failed to carry out essen- tial improvements to services, and the trade personnel are inade-

quately trained.

short, the economic and social

significance of tourism has not been

recognized. As a result, :he Chinese government failed to carry out neces- sary improvements in time. eg they delayed investment in building tourist accommodation in the key port cities such as Beijing, Shanghai and Guang-

zhou. so there are still bottlenecks in these cities which seriously hamper the further increase of the receiving capacity of the country as a whole.

New goals

To improve the situation and open up a new prospect for China’s tourism, the State Administration for Travel and Tourism (SATT) produced a re- port, which has been approved by the Secretariat of the Central Committee of the Communist Party of China, and the State Council, and transmitted throughout the country.

The report makes it clear that tour- ism is a comprehensive undertaking involving politics. economics, science and culture. Tourism cannot be tre- ated as merely an economic subject. Efforts should be made to develop tourism in the light of China’s specific conditions with the aim of obtaining both political and economic benefits. Based on the principle of the 12th Congress of CPC (1982) and the esti- mated increase in the country’s receiv- ing capacity. SATT has programmed two phases of development for the next 16 years up to 2000.

The general goal for the first phase, up to 1990, is to initiate and develop Chinese-style tourism, in order that

China may enter the ranks of the more advanced tourist countries. In this period. China is to reach a target of three million overseas tourists annual- ly (excluding the compatriots from Hong Kong, Macao and Taiwan re- turning to the mainland to visit rela- tives or friends), and a target of USS 1 SOO-2 000 million annual revenue earned from the trade. During this period. the rates of increase of the number of tourists and income from tourism will be 6% and 10% respec- tively.

The general goal for the second phase. from 1990 to 2000, is to enable China to be one of the advanced tourist countries of the world. Tourist facilities. services and tourism man- agement will be up to the modern level. The number of overseas tourists will be four million a year, and the tourism earnings USS 4 000 million increasing at 3% and 7% per annum respectively.

To effect the 16-year programme for tourism development before the turn of this century: and to create a new prospect for tourism; SATT puts forward, in its report, the following eight measures to be undertaken:

l Speed up restructuring the tourist administrative framework, and aim at having separate enterprises and administration, a unified lead- ership and decentralized manage-

ment. 0 Make great efforts to improve com-

munications and transportation

Table 1. Growth in international tourist number and revenue in China (1979-1983).

Total overseas tourists (x 103) Including

Foreigners Overseas Chinese Compatriots from Hong Kong

Macao and Taiwan Number received by

CITS CTS

Total revenue (RMB Y mn)

1978

1 809.2

229.6 18.1

1 561.5

124.6 163.8 21 a.7 286.3 316.2 561.8 806.1 694.7 865.9 664.6

452 696 919 1 376 1 570 1 666

1979 1990 1991

4 203.9 5 702.5 7 767.1

362.4 529.1 675.1 20.9 34.4 38.9

3 820.6 5 139.0 7 053.1

1982 1983

7 924.2 9 4T7.0

764.5 873.0 42.7

8 604 7 117.0

Note: 1.13 million were foreigners, 30% more than in According to the Communique on Fulfilment of the previous year: and 11.72 million were over- China’s 1964 Economic and Social Development seas Chinese or compatriots from Hong Kong Plan issued on 9 March 1965 by the State and Macao. up 36.2%. Foreign exchange Statistical Bureau. in 1984 the tourist industry earned through tourism was US$l .13 billion, up attracted 12.85 million visitors from 162 countries 20.2% over 1963. and regions, 35.6% more than in 1983. Of these, Source: China Statistics Yearbook 1983.

142 TOURISM MANAGEMENT June 1985

Page 3: China ready for new prospect for tourism development

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faciliti2s for tourism devrlopment. Strengthen the control of tourism prices. and following the intsrna- tional practice. different rates for peak, shoulder and slack seasons should be implzmented. Plans should be made for the de- velopment and construction of the scenic sites and tourist attractions. Pay attention to the improvement of economic profitability in the tourist business. Build more hotels in the middle and lower market ranges in the popular tourist cities in order to meet the needs of a variety of tourists, especially the rapidly in- creasing demand of the domestic market. Improve the calibre of the industry personnel in order to improve the

image of China’s tourism.

SATT and other tourist administra-

tive organs at various levels should strengthen their control over domestic tourism.

National Conference of Tourism

To communicate and discuss the re- port, and other instructions by the Party and State leaders, a National Conference of Tourism sponsored by SATT was held in Beijing from 25 August to 4 September 1984. Dele- gates were directors of local tourism bureaux or managers of tourist cor- porations, directors of the head offices of China International Travel Service (CITS), China Travel Service (CTS) and China Youth Travel Service (CYTS), representatives of ministries, commissions under the State Council, and scholars in the tourism research institutes and higher learning institu- tions.

During the conference, the signifi- cance of tourism to the social and economic development of the country was re-stressed. The present situation for developing tourism was thoroughly analysed and concrete measures and arrangements for further development were fully discussed. In order to open up a new prospect for China’s tourism, the conference held that there should be four major changes in the work of the tourist departments:

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At present thz tourist departments are mainly engaged in tourist re- ception, but thsre should also be more involvemrnt in the devslop- ment and construction of tourist

resources. Instead of being in charge of inter- national tourism only, the depart- ments should control both interna- tional and dom2stic tourism. The present monopoly of invest- ment in tourism development by the state should be replaced by multiple investments by state, loca- lities. departments, collectives and individuals, together with the use of both domestic and foreign capit- al. The tourist operators should shift from government-supported in- stitutions to independent business enterprises.

The conference called on the depart- ments of tourism to improve their understanding of the importance of tourism, and to popularize it with the whole of society. Due to the specific features of the tourist trade, the con- ference called for the active support and close cooperation of the depart- ments concerned. SAT7 asked the local bureaux to work out plans and measures for future tourism develop- ment in line with the overall state programme, under the guidance of the local authorities.

The conference also discussed drafts of tourism law, provisional regulations for tourist price control, and pro- visional regulations for the manage- ment of travel services. Several con- structive amendments were made.

Conclusion

China is experiencing a historic overall reform. The restructuring of the tour- ism administration and management is but one part of the reform of the entire national economic system. With the improvement of the national eco- nomy and the greater understanding

Rrporr

of thz tourism system China’s tourism should soon taks on a n2w look.

Zhang Guangrui, Assistant Fellow

Institute of Finance and Trade Economics

Chinese Academy of Social Sciences

2 Yuetan Beixiaojie St. Beijing, PRC

Notes

‘The 30 cities foreign tourists can vtsit without travel permits are: Beijing; Tianjin; Shanghai; Qinhuangdao; Taiyuan; Shen- yang; Changchun; Harbin; Nanjing; Suz- hou; Wuxi; Hangzhou; Jinan; Qingdao; Zhengzhou; Kaifeng; Luoyang; Wuhang; Changsha; Guangzhou; Fashan; Zhao- qing; Nanning; Guilin; Xi’an; Xianyang; Chengdu; Chongqing; Kunming; Lunan County. According to the announcement by the Ministry of Public Security of China on 4 February 1985, another 67 cities and counties have been added to the list of places that can be visited by foreigners without any further formalities after the visa is obtained commencing from 15 Febrary 1985, making a total of 98. In order to suit the needs of the new situation of being open to the outside world, and for the convenience of foreigners travelling within China, the newly-added cities and counties are as follows: Anshan, Anshun, Anyang, Baotou, Bengbu. Beihai, Changzhou, Chengde, Daging. Dandong, Emei, Fushun, Fuzhou, Guiyang, Haikou, Hengyang, Hefei, Hohhot, Huangshan, Huizhou, Jiangling, Jiangmen, Jingdezhen, Jining, Jilin, Jinzhou, Jiuhaushan, Jinjiang, Lan- zhou, Leshan, Lianyungang. Liuzhou. Nanchang, Nantong, Ningbo, Qigihar, Quanzhou, Shantou, Shaoguan, Shaox- ing. Shashi, Shenzhen, Shijiazhuang, Tai’an, Tunxi, Urumgi, Weifang. Wenzhou, Wuhu. Wuzhou. Xiamen. Xiangfan, Xiang- tan, Xining. Yangzhou, Yan’an, Yantai, Yanji, Yichang, Yinchuan, Yueyang. Zhangzhou. Zhanjiang, Zhongshan, Zhu- hai. Zhuoxian. Zibo. The 14 coastal ports open to the outside world are: Dalian (Liaoning P.); Qinhuang dao (Hebei); Tianjin; Yantai (Shandong); Qingdao (Shandong); Lianyungang (Jiangsu); Nantong (Jiangsu); Shanghai; Ningpo (Zhejiang); Wenzhou (Zhejiang); Fuzhou (Fujian); Guangzhou (Guang- dong); Zhanjiang (Guangdong); Beihai (Guangxi).

Report Tourism Management welcomes contributions to the journal‘s Report section. Articles should be between 1 000-l 500 words.

TOURISM MANAGEMENT June 1985 143