China’s Pro-Travel Plan Is Good News for U.S.

The Chinese government has announced initiatives aimed at encouraging its citizens to travel abroad. The moves should give U.S. travel sellers still more opportunities to capitalize on a booming inbound market.

“This is a great business opportunity,” said Haybina Hao, director of international development for the National Tour Association (NTA). “The Chinese already love the U.S. It’s their No. 1 dream destination.”

Incentives to travel
The Chinese government’s new Outlines of the Chinese Citizens’ Travel Initiatives 2013 – 2020, released only in Chinese, details plans for offering Chinese citizens incentives to travel and for improving the country’s travel and tourism infrastructure.

Among the steps outlined are: building or expanding airports, highways, hotels and attractions; increasing paid leave for workers; increasing tax deductions for company incentive and conference travel, and allowing schools to increase current travel windows beyond summer and winter breaks.

“These initiatives will change China and reshape our industry, if we can grab the opportunity,” Hao said. “Chinese travel agencies are working now to identify more products and American partners.”

Growth areas
Hao predicted an increase in the number of student groups coming during the regular school year, convention attendees, families and seniors groups.

She advised travel agents to network within the industry and to work with U.S. tour operators approved to work with Chinese agents under the NTA’s China Inbound Program (CHIP).

“Along with the established destinations, the NTA’s CHIP operators are great partners for you. They are already bringing groups to the U.S.,” Hao said. Currently about 150 U.S. firms are CHIP operators.

37% growth
The number of Chinese visitors to the U.S. through October 2012 grew by 37% over 2011, a year when Chinese arrivals topped 1 million for the first time, according to the NTA.

China has also displaced the U.K. as the third highest-spending inbound country in 2012, according to Visa’s 2012 Travel Snapshot. Spending by Chinese visitors grew a whopping 30% last year compared to 2011. It is now third in spend behind Canada and Brazil.

Beyond gateway cities
Seventy percent of Chinese visitors to the U.S. travel to California, but there’s also great opportunity “for every corner of the U.S.,” according to Hao.

Gateway cities and major destinations already know how to attract the Chinese market, Hao said. Smaller cities and towns should connect with the majors and encourage them to  add one- or two-day excursions to their destinations to Chinese itineraries, she suggested.

“Chinese travelers love to brag that they’ve been to something that’s the biggest, the oldest, the deepest,” she said.

Attracting FITs
Smaller destinations should determine what makes them unique, translate it into Chinese and feature it on their websites to attract FIT travelers, a segment that holds great potential, Hao added. She said Chinese couples and families search the Internet to plan trips.

“Over the past 25 years the Chinese went from being a people that never traveled to traveling within their own country only, to traveling outside their country,” she said.

“It won’t take them long to learn this country, but we must work to invite them to our destinations.”

NTA’s China initiatives
Hao will be in Beijing in April for the China Outbound Travel & Tourism Market, where NTA is partnering with Brand USA to present the USA Pavilion.

NTA also is conducting its second China Market Forum during Contact, its tour operator event, from Aug. 15 to 17 on the Big Island.

During the year, the association and Hao provide customized workshops and strategy sessions for tourism professionals and destination marketing organizations.

The NTA has been instrumental in developing the  Chinese market since 2008, when the U.S. and China governments signed a memorandum of understanding enabling Chinese leisure groups to travel here through Chinese travel agents working with approved U.S. tour operators.