Chapter 2 Case Study - China's Tourism System Between 1949 and the early 1980 s China was isolated. After Mao's death in 1978, China's new 'Open China' policy targeted inbound tourism as a route to foreign currency earnings. In 1982 the new China National Tourism Administration (CNTA) began promoting China to international visitors and investing in infrastructural development (Mintel, 2004). Additionally, controls over Chinese citizens' tourism activity were gradually reduced (Nyiri, 2006). By 2016, China had become the world's fourth most visited destination country, and the largest tourist-generating region (UNWTO, 2016b). China offers numerous world-class heritage and natural attractions (e.g. the Great Wall, Forbidden City, Terracotta Warriors), however, initially it lacked hotel and transport capacity. Relaxation of foreign investment restrictions in the 1980s allowed foreign hotel companies into China (Mintel, 2004), and govemment investment stimulated rapid growth of the road, high-speed rail, and airport infrastructure (Mintel, 2004). Today major hotel Hotels Group (IHG), Marriott and Wyndham Worldwide. In 2014, China attracted 55.6m intemational tourists; its main inbound markets are Hong Kong. South Korea, the USA and Russia; 2014 also saw almost 100 million day visitors from Hong Kong and Macau, and in 2015, 4 billion domestic trips (Mintel, 2016a). In 2016, domestic and inbound travel and tourism contributed US $1,000.7 billion to GDP - 9 per cent of the total economy - supporting almost 70 million jobs (WTTC, 2017c). Leisure tourism dominates tourism expenditure ( 80.8 per cent) and domestic visitors' contribution is 82 per cent compared to 18 per cent from international visitors (WTTC, 2017c). The International Air Transport Association (IATA) estimates that by 2029 , China will be the world's top passenger airline market (cited in Mintel, 2016a), but until the 1980s, tourism was seen as a Westem activity (Nyiri, 2006). Government attitudes to tourism have relaxed gradually: Chinese outbound tourism was permitted for business or VFR, although each trip required government approval (Nyiri, 2006). In 1997 the CNTA began encouraging domestic tourism (Li, 2007), and China officially recognised outbound leisure tourism and established regulations requiring countries seeking to attract Chinese leisure tourists to enter into bilateral The International Air Transport Association (LATA) estimates that by 2029 , China will be the world's top passenger airline market (cited in Mintel, 2016a), but until the 1980 s, tourism was seen as a Western activity (Nyiri, 2006). Government attitudes to tourism have relaxed gradually: Chinese outbound tourism was permitted for business or VFR, although each trip required government approval (Nyiri, 2006). In 1997 the CNTA began encouraging domestic tourism (Li, 2007), and China officially recognised outbound leisure tourism and established regulations requiring countries seeking to attract Chinese leisure tourists to enter into bilateral tourism agreements with the Chinese government, known as approved destination status (ADS) (Li, 2007). By 2014 more than 146 ADS agreements had been signed with destinations around the world. Initially, outbound leisure tourists had to travel on organised group tours operated and sold by CNT Approved tour operators and travel agencies. While group travel is still significant, a new type of Chinese tourist, known as free independent travelers (FITs), is being targeted by many destinations. FITs are young, educated, and experienced travelers who seek adventure and unique experiences. They enjoy researching and planning trips and tend to book online; in response to this, Chinese online travel companies such as Ctrip have become very powerful- Ctrip is the fastest-growing OTA, and the third-largest by booking value after Expedia and Priceline (Rossini, 2016). China, the world's argest generating region, ranked first for outbound visits in 2015 (127.9 million) and for spending on international tourism (USS292.2 billion) (UNWTO, 2016b). In many countries China is already the first or second most important generating region. Case Questions 1. How did the broader environment influence China as a destination region for international tourism, and as a generating region for outbound tourism by Chinese citizens? 2. How did destinations in China develop