Viewpoints on China’s Tourism Investment Boom

    Published Date:2014-8-26    Posted by:    Hits:876

       China’s tourism has never been so valued and concerned by all levels of government today. Travelers taking more trips and market demands growing, tourism investment becomes a new focus of investors.
    QUESTION: What is the path for China’s tourism investment in future?

    Investment boom will set up a new pattern of China’s tourism.
       Wang Qi, the Director-General of International Tourism Investment Association (ITIA), considers that Chinese tourism industry is very different in social system and governmental policy from other countries. The domestic tourism investment models are formed by businesses and government cooperating, with property developers begun to join.
        In this situation, local government investments play an important role in stimulating economic growth. Tourism businesses and hotel groups show much professional in exploiting tourist products and services. Property developers have powerful strength in financing and investing, but short in capability of creating tourist products. Meanwhile, the small and medium enterprises get living harder.
        With the development of China’s tourism, the personalized tourist experience, rich product demands, and the variety of tourist industry cannot be separated from public participation and overall support of the society.
        So, multiple economic elements join the participation will reach the ideal state of market and tourism investment.
    Where does China’s tourism investment fall short?
        Some said, “Funds”; some said, “Project”; and some said, “Market”. Addressing the issue, Wang Qi, the Director-General of ITIA said, “The level and quality of project”.
        The 4th China Tourism Projects Investment Conference 2014, initialized by ITIA, being the biggest, highest and most authoritative annual conference in this area in China was successfully held during June 13-14 in Beijing. The fundamental issues of this year were about the project brand, quality, innovation and international cooperation.
        Aware of the weakness in tourism investment, the Conference brought six topics for debate. “Where to find the Tourism Boutique Projects in China?”, “Introduction and Innovation of Tourism Products”, “Which is Better, Large Tourism Project or Small One?”, “Comparison Between Resource-oriented Projects and Market-oriented Ones”, “Which Do You Prefer, Rapidly Invested Project or Steadily Crafted One?”, “Which is More Principle to Tourism Projects, Capital or Intelligence?”.
        International Tourism Investment Association International Cooperation Commission (ITIAICC) was announced on the second day, June 14th, to be composed of about 30 international seniors and experts in tourism investment with the task of introducing and spreading successful experience and practices in tourism investment worldwide.
    Tourism complex project becomes a hot spot for investment.
        In recent decades, the tourism investment has shown rapid development trend, changing from scenic spots and hotels to tourism complexes, currently taken the more integrated and large-size projects as its main mode.
        More tourism complex projects are emerging now, such as, Xixi Paradise Leisure Complex International Tourism in Hangzhou of Zhejiang Province, Best Tourism Complex on 2012, award by ITIA, and other distinguished projects like Shenzhen Splendid China, Best Theme Park, and Wanda Changbai Mountain International Tourism Resort, Best Mountain Tourism Project.
        Theme park project is the rising star in tourism complex investment, mainly relying on demands of the population. But, it’s not easy to plan out such a product achieving market and standing the test of time. ITIAICC, hereafter, will import successful cases and items from abroad.
     “Some smart developers have also learned to make money on both tourism and property.” said by Wang Qi.
    Culture should be a carrier of tourism investments.
        Wang Qi pointed that many tourism products appealing great charm owed to the carrier of their unique spirits and culture nature. Culture, spirit, personalization and core competence, these words were m entioned frequently.
        He shared an interesting case of project. “The Great Wall is the most magnificent military defensive works of ancient China, a world cultural heritage. It seems having no new highlight of the tourism project any more, and we could not build up another one as well. However, we could achieve certain incremental effects by new high technology.”
     “Far as I know, a company is doing this, about to meet with visitors soon. Their product is to let tourists not only appreciate the fine spectacle when visiting the Great Wall, but also being soldiers themselves, wearing armors into ancient battles through time by a hand of the new high technology. Such a classic case of technology and culture integrated will greatly enhance tourist experience. Unfortunately, 90% people have not realized the market yet.”
    Tourism investors shall stress docking with traditional travel servicers.
       Tourism investment aims to develop the tourist products into market. Traditional travel services have played a great important role during the process.
        Wang Qi has a theory of N+1. New tourist projects have almost covered the hotel, golf course, hot spring some scores of items, which would be considered as standard equipments, called N. What is the core attraction, called 1? Yellow Mountain, itself is 1, but for Emei Mountain, itself is N, temples on the mountain are 1. The unique core value of attraction forms 1. If the tourism projects only have N without 1, they will finally lose the market.
       Along with the competition and development of tourist industry, China’s tourism investment has formed the respective orientations and specific fields, as a result, new types of products will constantly spring up.

    ANSWER: The path for China’s tourism investment booming in future is developing in projects increasing and enhancement, by the culture creativity and technologies integrated.