Published on : Friday, January 20, 2017
In 2016, China’s tourism industry witnessed strong growth, due to the central government’s stimulating policies and innovative financial practices in the tourism industry like mergers and acquisitions. However, there is still a $100 billion deficit between revenues generated by outbound and inbound travel along with lack of qualified services and a potential tax increase following the value-added tax (VAT) reform.
Domestic tourism revenue in 2016 increased 13.6% to 4.69 trillion Yuan ($680 billion). According to the UNWTO, the tourism industry contributed 11% of China’s GDP in 2016, and was responsible for 10.26% of the country’s social employment, equal to the world’s average. Last year, domestic tourists made 4.44 billion trips. As China’s economic structure is strategically upgrading, especially in the real economy, the tourism industry has become an important vehicle of economic growth and a foundation for local employment.
In addition to favorable policy support, the exploration of new financial models concerning mergers and acquisitions in 2016 was also critical in elevating the competitiveness of China’s tourism industry. The Chinese government expects tourism revenue to reach 7 trillion Yuan by 2020. In 2016, inbound trips increased 3.8% to 138 million while outbound trips rose 4.3% to 122 million.
Tags: China’s tourism industry