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Sichuan Tourist Guide



Foreign travel agencies conduct business in the Chinese outbound travel agencies face challenges

Published: August 24, 2010


China National Tourism Administration Shao Qiwei 22, the fifth held in Hangzhou, Japan and Korea Tourism Ministers meeting revealed, at present, the National Tourism Bureau and the foreign investment department is working out a foreign-invested travel agencies operating in China outbound tourism policy policy, once introduced, will pilot in the first parts of China.

For the news, the industry generally, when a travel agency allowed to operate foreign outbound tourism Ye Wu, will give an outbound tourism in China's domestic business travel has brought no small impact on and challenge and will also travel agencies in China to speed up restructuring Forced pace.

Opening up foreign travel outbound tourism has long been brewing in this policy. In December 2009 in China, "the State Council on Accelerating the development of tourism in the views" the first time, a pilot basis, and gradually opening up to foreign investment in travel agency operating outbound travel business in China; this year in July the State Council issued the "implementation the views of the State Council on Accelerating the development of tourism programs focus on division of labor "is also clear that the future China will actively introduce foreign tourism enterprises, and on the basis of the pilot phase of the operation of foreign invested travel agencies open for outbound tourism in China.

China National Tourism Administration Shao Qiwei 22, the fifth held in Hangzhou, Japan and Korea Tourism Ministers meeting , said that at present, China National Tourism Administration and foreign investment (in charge) department is working out a foreign-invested travel agency operating outbound travel business in China policy, policy, once introduced, will pilot in the first parts of China. It is understood that, as early as July 2003, JAL approved by the China National Tourism Administration has established the first wholly foreign-owned travel agency. As of now, the United States, Japan, Europe and other countries among the top 10 travel agencies in China have set up joint ventures, wholly-owned travel agency. But the policy also clearly stipulates that the registered capital of foreign-invested travel agency shall not be less than 400 million, and only operate domestic travel and inbound tourism, outbound tourism may not operate.

It is understood that, due to the limited scope of business, foreign travel agencies in China now exceeds Jiucheng at a loss. Fudan University, Professor Gu Xiaoming, Department of Tourism told reporters that the tour is in the "dormant period", once the policy of opening up outbound tourism business, they will flex its muscles.

Foreign Travel "dormant" profound intentions of Chinese tourism market. As of August 2010, there were already more than 140 countries and regions as destinations for outbound Chinese tourists. Travel from China Institute's latest report shows that in 2010 the number of Chinese outbound tourism will over fifty-four million times, growth rate of over 11 percent, tourism services trade deficit reach 50 billion, by 2015 it is expected that 200 billion dollars. Such a huge tourism market, is bound to be competition for foreign travel of a large cake.

The industry believes that, in the outbound connection, an overseas sites, and cultural packaging, foreign travel agencies have unique advantages in the marketing or publicity also has a brand advantage, it will all stages of development in high-speed impact outbound travel market . Zhejiang Travel Association, Yan Chen told reporters, Zhejiang, for example, the current outbound tour is usually a local travel agency, and through cooperation with overseas inbound tour together to complete reception, corresponding also divert a lot of profit. "But strong overseas travel funds, once stationed in China, could form their own organization and reception of a line, exclusive of profits."

"The pressure that is the driving force." Shao Qiwei this optimistic. He said that at a certain stage, especially in opening up will bring some challenges in the long run, will help China's tourism industry. "I believe after 30 years of reform and opening up, and join the wto nearly 10 years of experience, China's travel agencies have a certain tolerance." Shao Qiwei said.

"Currently the biggest problem is the travel product homogeneity, inevitably lead to low-cost hard-fought." Gu Xiaoming that "against" foreign travel agencies, market segments will be China's future development trend of domestic travel agencies. "Learning yoga in India, people may choose to travel, like shoppers may choose to travel to Europe depth. Foreign travel a very focused individual tourism products. So, for domestic travel, the emphasis on market segmentation is very important."

In addition, he pointed out, foreign travel agencies wholesale and retail system is perfect, and the Chinese tourism industry with the lack of large-scale wholesale and retail system, weak R & D capability.

Due to open foreign investment policy travel outbound tourism has long been brewing, the domestic travel industry for the coming challenges have also been deployed countermeasures. Yan Chen believes that foreign travel agencies stationed in the face of domestic travel agencies have some advantages, "First of all, with years of market operations, domestic travel has accumulated considerable experience, a better grasp of the needs of Chinese consumers; Second, domestic travel has also a wide range of sales channels and service networks; Third, many travel agencies have formed domestic brand. "In addition, Yan Chen said that foreign travel agencies to speed up domestic travel agencies will be stationed in the pace of restructuring. "The domestic tourism industry from the past, the more low-end price war, gradually leading to genuine service-level contests, the formation of learn from each other to enhance the competitive landscape."

Zhejiang International Travel Group Marketing Director Chen Xinan told reporters that they are well prepared to deal with the impact of foreign travel: outbound tourism business, such as the gradual shift high quality, high-end development, and continuously optimize the tourism product, in order to contend with foreign travel agencies; by strengthening related to the tourism sector with foreign collaboration, improve access to advantage; continuously expand their business networks, with the advantage of close to consumers to compete for market share.
Source: Xinhua

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