Benefits of tourism home and abroad

Mainland tourists carry shopping bags as they walk through Hong Kong's shopping district Causeway Bay. [Photo/Agencies]

In 2014, for the first time, the number of Chinese mainland tourists visiting destinations overseas exceeded 100 million. This was a milestone in the development of the country's tourism in the 12th Five-Year Plan (2011-15), and the number of overseas tourists has continued to grow since then and is expected to do so in the next five-year plan.

There are many reasons for a boom in overseas travel, but higher incomes are the primary cause. The tourism market has multiple levels, with overseas travel at the top; only with enough money in hand will people travel overseas in their leisure time. This is particularly true for long-distance travel, in the case of Chinese tourists to destinations in Europe or the United States, which costs so much more than regional travel. Chinese GDP per capita was just $4,628 in 2010, but increased to about $7,591 in 2014.

This can easily be seen from the experiences of Japan and the Republic of Korea. The two countries experienced booming overseas tourism in the 1970s and the 1990s, which roughly matches the decades of their big rises in economic prosperity. Therefore it will be a normal phenomenon in the coming years for more Chinese to travel abroad.

Better educational backgrounds are also an indispensable driver of the growing trend for overseas travel. The longing to see faraway places belongs only to those with certain levels of education, especially those with a mastery of a foreign language. For those who have little understanding or awareness of the outside world, seeing the famous sights overseas are unlikely to feature on their bucket lists.

For China, there is also one special reason for the boom in overseas tourism: its opening-up policy. Since China adopted the reform and opening-up policy in 1978, the number of people-to-people exchanges between China and other countries and regions has continually increased.

It should be noted that growing number of Chinese tourists heading overseas also benefits the economies of their destinations. Tourism involves huge consumption as both travel and lodging mean spending money. Airlines and well-known hotel chains are earning a huge part of their revenues from Chinese tourists eager to embrace the outside world.

Besides, with their incomes growing, Chinese consumers are no less enthusiastic about spending on luxuries and other high-end consumption goods.

Another positive impact of overseas tourism is the less-direct benefits it brings to the destination countries. Data shows that when a tourist spends one US dollar in a nation, that will involve seven or more dollars in consumption in related industries. For example, when a tourist stays in a hotel for bed and breakfast, the hotel needs to purchase soap, shampoo, and bottles of waters, as well as hire cooks and serving staff and cleaners for the room. So a one night stay benefits more than just the hotel.

Actually, tourism is a supporting pillar of the service sector in several developed countries, so they tend to invest heavily in attracting tourists to boost their economies.

But facing the task of economic restructuring and maintaining growth, China also needs to ensure these benefits are realized at home. The domestic tourism industry needs to boost its level and services, so that more global travelers will visit China and spend their money here.

Liu Simin is deputy secretary-general of Beijing Tourism Association. The article is an excerpt of his interview with China Daily's Zhang Zhouxiang