Wednesday, December 19, 2007

Chinesepod - 10th Five-Year Plan

BIZCHINA / Tourism

10th Five-Year Plan

Updated: 2006-04-18 16:48

In 2000, the total annual turnover of the 8,993 travel agencies was only
46.995 billion yuan while the total annual turnover of the tour company
of American Express of the same year amounted to US$ 17.4 billion, an
equivalent of 140 billion yuan. The total turnover of all the travel
agencies of the country only accounted for over one third of that of
American Express alone. The total turnover of Japan Communication Commune
was US$23.5 billion, an equivalent of 188 billion yuan. The total
turnover of all the travel agencies of the country only accounted for
over a quarter of that of the Communication Commune. The gap was huge.
This is a basic problem that affects the development of the whole
industry.

The main problems that exist in the travel agencies industry include:

1. The structure of travel agencies is irrational. Generally speaking,
the travel agencies are small and weak. They promote repetitive products
in the repetitive markets, trying to attract repetitive customers. The
competition is at very low levels.
2. The low-level competition led to falling prices and unstable service
quality.
3. Travel agencies do not have the capability of developing new products
and new markets, which will affect the development of the travel agencies
industry in the long run.
4. Scale and network: China need to develop big travel agencies or big
tourism group companies to support a powerful tourism industry.
5. The reform of travel agencies is behind the time. The modern
enterprise system should be widely adopted by the travel agencies.

[Source:China National Tourism Administration; The Yearbook of China
Tourism]

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