Tourism Leaders Call for Sino-Japanese Reconciliation

Panellists on the 54th PATA Annual Conference session "Windows on China", including China National Tourism Administration Vice-Chairman Mr Gu Zhaoxi, today agreed that the China (PRC) and Japan governments needed to initiate reconciliation between the two countries, in the wake of anti-Japanese demonstrations in China (PRC).

Despite panellists' assurances that Japanese individuals were safe in China (PRC), Japanese travellers have been cancelling their trips out of fear for their safety. China International Travel Service Executive Vice President Mr Yao Yeucan said tourism was an important tool for resolving this issue.

Mr Yao cited statistics showing the tremendous growth in Chinese tourism. In 2004, Chinese tourism revenue was US$82 billion, an increase of 40.1% over 2003. From 1996 to 2004, annual average tourism revenue growth was 12.5%, more than 1.5 times faster than growth in the Chinese economy as a whole.

Mr Yao said China (PRC) was also the world's biggest emerging market for outbound tourism and is now the largest tourism-generating country in Asia. "By 2020, China will be the number one tourism-generating country in the world," he said.

Average spend for outbound Chinese travellers in Europe is US$175 per person per day, which is three times more than what Japanese travellers spend in Australia, according to Mr Yao. He identified two potential niche markets for China (PRC) outbound: student travel and cruising.

MK Corporation Chairman Mr Peter Wong noted that on top of the enormous opportunities for both inbound and outbound tourism, there were 840 million domestic trips taken in 2004. However, he said the Chinese government needed to allow more input from travel agents, hotels, industry partners and other tourism stakeholders, as most tourism-related establishments are government owned. The potential for destination development would be better realised in partnership with private stakeholders, he said.

Accor Greater China Senior Vice President Mr Brian Deeson said there was big growth potential in the 5-star and 3-star accommodation markets within China (PRC) as well as an important emerging market for Chinese outbound travellers. Five years ago, Accor concentrated on the Japanese market. Now its focus is the Chinese market. And to cater to Chinese outbound travellers, hoteliers have to offer the right products and services, such as Chinese breakfasts.

The session was moderated by CNN Talk Asia's Ms Lorraine Hahn.

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