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China's Tourism Boom

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By Bruce Einhorn

China's Tourism Boom

China's new wealth has created a new kind of world traveler, the Chinese tourist. Both inbound and outbound tourism are booming as more Chinese can afford to travel around their own country and also go overseas. Late last year, the U.S. and China reached agreement on a deal to liberalize restrictions on Chinese tourist visits to the U.S. The deal, signed last December during a visit to China by Commerce Secretary Carlos M. Gutierrez, is one of many Beijing has been making with foreign governments eager to welcome big-spending Chinese tourists.

While millions more Chinese tourists travel overseas, the Chinese government is readying to welcome more foreigners. In the lead-up to the Beijing Olympics, officials and company executives involved with China's tourist industry focused on opening hotels and building infrastructure to prepare for the Games. The next big event to attract visitors from abroad will be the World's Fair in Shanghai in 2010. Officials hope that will kick off an even bigger decade for the local tourism industry. By 2020, China is likely to be the world's largest tourist destination.

As the Chinese economy slows because of the global financial crisis, the country's tourism industry is feeling the impact. Revenue growth is slumping at Macao's casinos, for instance, and sales are slowing at Hong Kong's retailers. But over the medium term, companies in the tourism business are still counting on big demand from China.

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