Tourism industry in China is booming as the country has emerged as one of the most sought-after tourism destinations and is attracting huge foreign investment.
Overseas companies are showing a keen interest in making investments in the tourism industry of China as the nation has now opened the doors of its tourism industry to outside world and has also decreased the access of threshold for foreign investment, reported Asia Property Report.
Official data reveals that foreign investment in Chinese tourism industry averaged between Yuan 30 to 40 Billion a year (2006), accounting for 25% of the total capital of the nation in the tourism industry, including construction of scenic places, hotels and travel agencies. The expansion of space in China’s tourism sector is ideal to attract foreign capital. Moreover, the open attitude of China propels the efficiency of its tourism capital market. Also, tourism industry’s fast progress is likely to increase the investment of foreign capital in it.
It is expected that total income of the tourism industry in China would surpass Yuan 950 Billion (around US$ 1128 Million). Experts are of the view that this industry will continue to grow over 10% annually in the following years. Out of them, individual utilization in tourism would be 9.8% yearly and that of business tourism would increase to 10.9%. By 2010, revenue from tourism would account for 8% of the total GDP in China.
As per the World Tourism Organization forecast, China would evolve as the world’s largest tourism destination and 4th largest tourist source by 2020. This enormous tourism market would draw increasing capital from overseas to build profits. At present, China has an improved environment for investment, like better infrastructure and additional facilities, mature operation methods and concepts of investment. Features like better government support and other oncoming tourism projects are reasons for attraction for foreign capital.
Foreign practices have shown the significance of governments repeatedly. Developed markets have always an efficient tourism team with its aim to increase the domestic tourism sector by fundraising, preferential policies and a variety of promotional campaigns.
A Research Analyst at RNCOS says, “In China, traveling is no more a fashion or the luxury it used to be 10 or 20 years ago. It is now an integral part of life. The increasingly fiery tourism market is not only opening business opportunities for entities related to tourism, but also bringing up questions like how to effectively use resources to serve more travelers better.”
Related Market Research Reports:
Asian Medical Tourism Analysis (2008-2012)
Opportunities in Malaysian Tourism Industry (2007-2009)
China Tourism Industry Analysis (2007-2011)
