New agreement opens door to huge Chinese leisure market
A new federal trade agreement that will allow destinations for the first time to market in China has tremendous implications for the future US travel market, experts say.
The Department of Commerce has signed a memorandum of understanding between the US and China that will allow US companies to do business with China. Tour and other companies will be able to offer and market group leisure travel packages.
With the number of Chinese who travel outside their homeland expected to nearly triple to 100 million people by 2020, an infusion of tourists to the US could be a big boost for American businesses.
“Potentially in the next 10 years, they could blow out all our other markets,” said Bruce Bommarito, vice president of international market development for the Travel Industry Association, a US business group.
“The National Tour Association (NTA) is well positioned to assist U.S. travel companies in arranging Chinese leisure group travel and is ready to work with industry professionals in both countries,” said NTA Chairman and CEO Bob Hoelscher, CTP.
Previously, Chinese regulations prevented companies from organizing and marketing packaged tours for leisure purposes to countries that did not have Approved Destination Status agreements.
Until now, tour operators in China had to rely on personal relationships, or “guanxi,” to book tour group travel to US destinations, said Karen Chen, the chief representative of the Nevada Commission on Tourism in China.
“According to the UN World Tourism Organization, China is the fastest growing travel market in the world. This agreement will enable the United States to be competitive in the global marketplace and welcome new visitors to our great country,” said NTA President Lisa Simon.
China ranked as the 17th largest international market for visitors to the US with more than 320,000 coming in 2006, according to the US Commerce Department.
The visitors spent $2.1 billion in the United States, or more than $6,000 per person.
While only 1 percent of Chinese who left the mainland last year headed to the US a new study shows that many consider this country their top vacation dream destination.
Predictions are that an estimated 579,000 Chinese travelers will come to the United States by 2011.
“Some experts wonder whether American tourist sites are prepared for the deluge,” commented National Public Radio’s “All Things Considered.”
Report by David Wilkening
David
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