Analysis and Investment Consulting Report on China Tourism Industry Essay Example

business activities (6,434616), sightseeing tours (12,049859), visiting friends or relatives(72.866) , inbound service staffs(2 ,122 ,858 ) and other purposes(3 ,257 ,940 ). Regulations were also issued in October regarding national vacations on different festivals and anniversaries as well as paid leave for employees.In 1999, the period of “three golden weeks and one not too long holiday (New Year’s Day)” per year was changed to “two golden weeks and five not too long holidays” starting in 2008. This alteration of official holidays will greatly impact the current golden tour products, causing corresponding adjustments to be made. Short distance tours will likely become the new popular option in the market, while 4-6 day long line tours will also be affected in terms of tour product structure. Furthermore, China’s two golden weeks, the Chinese New Year and “Oct. 1st,” will reach a historic high in terms of tourism. As a new industry in the national economy, China’s tourism has established basic policies for development and construction during its early stages.China is implementing an investment policy that targets both domestic and foreign capital, as well as public and private investments in tourism developments. The objective of this approach is to enhance China's reception capabilities and stimulate activity within the tourism investment market, in order to facilitate the growth of tourism. Despite encountering obstacles such as inadequate marketization levels within its management structure and investment mechanisms, China's overall investment environment continues to improve. It is projected that over the next ten years, China's tourism industry will experience a steady annual growth rate of 10%, with personal tourist expenditures increasing at an average pace of 9.8% annually along with corporate

and government investments rising by 10%.

China is poised to achieve a 9% growth rate by 2020, making it the top choice for inbound tourists and the fourth most popular destination for outbound travelers. Additionally, China's tourism revenues as a percentage of its GDP are anticipated to rise from 5.44% in 2002 to 8% by 2010. With tourism being one of six new industries that highlight consumption potential, there are significant investment opportunities on the horizon.