PHOTO: Tour operators in Chinese inbound tourism pause for a photo at Jackson Square in New Orleans. (Photo by David Cogswell)
The Chinese are coming!
Inbound tourism from China is exploding. And like anything else to do with China it will have a huge impact. The numbers are growing rapidly, and the potential market is gigantic.
The money flowing into the U.S. from China will have a strong positive effect on the U.S. economy and will be a small step toward helping to tip the balance of trade, which has been predominately based on capital flowing from the U.S. to China for decades.
The large hotel chains have their eye on the new market and are gearing up, training staff, hiring Chinese-speaking ambassadors and adapting their offerings. Destination marketing organizations are getting prepared as well.
Anyone with a stake in inbound tourism had better take notice. The potential of the Chinese market is without precedent.
The National Tour Association (NTA) has been working with the Chinese government to shepherd the process since signing of a memo of understanding in 2007 with the Chinese government in an agreement worked out through the U.S. Department of Commerce.
Last week, in the days leading up to NTA's annual convention, Travel Exchange, in New Orleans, NTA conducted a familiarization tour of New Orleans to show tour operators who are dealing in the Chinese market what is available.
Haybina Hao, director of international development for NTA who oversees NTA's China inbound program, worked with the New Orleans Convention and Visitors Bureau to create and conduct the tour.
The 19 guests on the tour were tour operators working in the Chinese inbound market. Most are based in the U.S., run by Chinese Americans or Taiwanese Americans.
Based at the Sheraton Hotel on Canal Street, the tour was designed to give guests a quick sampling of New Orleans and its tourist offerings. Though it was a rapid panorama compressed into two days and three evenings, it encompassed the essentials of New Orleans.
It included a city tour giving an overview of New Orleans; jazz at Fritzel's European Jazz Club on Bourbon Street; meals at several classic New Orleans restaurants, such as Arnaud's, Café du Monde and the Palace Café; and a tour of Mardi Gras World, where the floats are made for the parades. The tour also took a foray into the surrounding region with a visit to the historical Oak Alley Plantation and a swamp tour on the Mississippi Bayou with Cajun Pride Tours.
Dimensions of a Boom
The Chinese inbound tourism boom began as a blip on the horizon as the Chinese government began relaxing restrictions on international travel for its citizens.
When the Chinese government gave the U.S. Approved Destination Status, the Chinese government approached the U.S. government to negotiate terms for managing that tourism flow and to make provisions for the safety and well-being of Chinese tourists in America. Officials from the U.S. Department of Commerce informed Chinese officials that the U.S. government did not engage in such activities but left them to the private sector.
The Department of Commerce looked at different trade organizations that might be able to work with the Chinese government on tourism and NTA emerged as the one most suited to the task.
A memo of understanding was signed in 2007, and in 2008 the NTA China inbound tourism program was initiated. In 2010 NTA received a grant to open a Visit USA Center in Shanghai to manage tourism. The grant covered three years of operation. After that, the program was managed from within the U.S.
In March of 2010 President Obama signed the Travel Promotion Act to launch America's first global marketing effort for tourism. By 2013, Brand USA established a presence in China. Meanwhile, NTA has continued to help manage tourism from China.
The growth of tourism from China, the world's most populous country, has grown meteorically, at an unparalleled rate, starting from practically nothing.
In 2006, the National Trade and Tourism Office estimated that there were 320,000 Chinese visitors. By 2013 the number had more than quadrupled to 1.8 million. And it's safe to say this is a trickle compared to the potential in coming years. China has a population of more than 1.3 billion and a rising middle class. In late 2014, visa regulations were changed to allow Chinese citizens to obtain visas for 10 years, instead of the previous limit of one year, which will open the floodgates even more.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
