Development Potential

Now let’s talk about the China’s domestic tourism in much more detail.

We will talk about the development of China’s domestic tourism from 1985 to 2017, (which) will be shared with all of you in this session.

This figure shows a development growth trend for domestic tourism, since 1985 when the data was available on domestic tourism in China. As can be seen from the figure, the growth has been quite substantial and constant historically.

The figure shows the difference between the per capita income for the urban and rural residents.

As can be seen from the figure, there is a big gap between the income for the residents who live in the urban and rural areas in China.

Tourism industry is highly sensitive to the income level of the residents, meaning that people will not travel until their living standard can reach certain level, in which all their basic necessity needs are satisfied.

But the gap starts decreasing in the recent years, meaning that people living in the rural area income level has been improved, which will generate broader demand for travel domestically.

In the following part, we are going to talk about development potential of China’s Domestic Tourism. Tourism industry is very much influenced by social, economic and political factors, especially economic factors, such as income, relative price among different cities and destinations. Major economic factors include growth of average income, consumption mode, adjustment of economic structure. International experience tells us when the GDP per capita exceeds 3,500 RMB per month, people are willing to travel for leisure purposes.

In the following part, we are going to talk about development potential of China’s domestic tourism one by one.

Domestic tourism should maintain rapid development and play a very important role in China’s tourism industry, because there’s a large demand for domestic tourism. There are also a large number of resources and service products available. The government and the tourism industry has also appreciated the contribution of domestic tourism to the local economy. Here is a second part of the development potential of China’s domestic tourism, we’d like to share with you.

They’re likely to forecast trends for the domestic tourism.

First on the tourism demand side, more favorable factors, such as paid holidays and accessibility of the destinations, should be created, which can enable the further development of domestic tourism.

Second trend should be on the supply side. Tourism leisure and entertainment related products should be more substantially integrated in the future development of the industry. The third part of development potential of China’s domestic tourism will be discussed in the following.

So joining the development stage of China’s domestic tourism, we believed that the following constraints should be considered. First of all, China’s GDP per capita is still smaller than the world’s average, and average income is still relative low.

Second, the gap between income of urban and rural residents is still quite large. Thirdly, income level greatly varies by region in china. These are the constraints we need to pay attention when we look at domestic tourism development potentials.