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China Tourism Report Q4 2011
Business Monitor International, Sep 2011, Pages: 65
China Tourism Report provides industry professionals and strategists, corporate analysts, tourism associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on China's tourism industry.
Slower Than Expected H111 Total arrivals to China grew by a slower than expected amount in H111, reaching 66.3mn according to figures released by the China National Tourism Administration (CNTA). This represented growth of 1.15% year-on-year (y-o-y), below the 6.3% growth level seen in full-year 2010. In part, this reflects the traditional cycle of the tourism sector, with arrivals picking up towards the end of the year. However, it is certainly a concern that international arrivals have slowed, which may reflect slowing growth prospects for North American and EU economies.
By contrast, domestic tourism is continuing to perform strongly, with CNTA finding that domestic tourist arrivals rose by 12% in the first half of the year, to 1.4bn. While this does not entirely compensate for the slowdown in foreign arrivals, it provides the sector with some welcome insulation from global market fluctuations. We still expect growth to surpass that of 2010, although we have reduced our 2011 arrivals forecast slightly to 142.7mn, representing 6.0% growth.
Independent Tourism To Taiwan Begins In June 2011, tourism relations between China and Taiwan have improved further as China allowed its citizens to travel independently to Taiwan for the first time. The two states agreed two-way visitor traffic in 2008, after which a set quota of Chinese tours were allowed to visit Taiwan. However, Chinese tourists can now visit Taiwan without registering on a tour, with potentially positive benefits for Taiwan’s tourist industry. At present, independent visitors are limited to 500 per day and only from Beijing, Xiamen and Shanghai. Should the trial scheme prove a success, this quota could be increased.
Air China Launches New Subsidiary In a mark of China’s expanding domestic market, national carrier Air China launched a new subsidiary based in the north eastern city of Dalian. Named Dalian Airlines, the new carrier is owned 80% by Air China and 20% by the Dalian government. Dalian Airlines will operate flights to major Chinese cities such as Beijing, Shenzhen and Shanghai, and plans to launch flights to Japan and South Korea in 2012 if it picks up sufficient air traffic in its first year of operation.
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