With the rapid development of the nation's economy and remarkable increase in disposable income, the country's tourism industry is flying. Inbound, outbound and domestic tourism are all showing expansive growth, with tourism revenues now accounting for 6.1 percent of total GDP.

Growth is due to newly opened international destinations, improved domestic transportation and infrastructure, and overall economic development and stability in China. The China National Tourism Administration (CNTA) says that the industry will grow at least 10 percent each of the next five years, while the World Tourism Organization predicts that China will be the world's largest tourism market by 2020.

The government's support of outbound tourism has been instrumental in the surge of Chinese consumers traveling abroad. By December 2006, 129 countries and regions had been approved as destinations by the CNTA, a dramatic increase from the six approved in 1999.

An example of government efforts to expand tourism is an agreement last year with Australia allowing all Chinese citizens to visit the continent. Before only citizens from eight provinces and municipalities, including Beijing, Shanghai and Guangdong Province, were allowed to travel there. Africa was also opened to Chinese tourists in 2006, with more than 10 countries, including Egypt, Kenya, Tanzania and Namibia, qualifying as approved destinations.

Increased travel has naturally brought benefits to airlines and hotels. The aviation industry continued to show strong profits despite high fuel prices that boosted costs 23.5 percent. China National Aero-Technology Import & Export Corporation Group was the most profitable, with total a 3.97 billion yuan in net profits. Spring Airline had the highest occupancy rate, at 95.3 percent, while Air China was the winner in international business travel, with an occupancy rate of 75.9 percent.

Economy accommodation including hotels, motels and youth hostels are also growing in popularity. One of the most famous chains of economy hotels in China is Home Inns, which now has 110 hotels and had a successful stock offering on the NASDAQ in 2006. Other economy hotels have expanded into different regions, most enjoying occupancy rates 10 percent higher than the industry average of 78 percent.

With the approach of the Beijing Olympics, and China's business and leisure travel continuing to boom, world famous hotel groups are increasing their investment. In 2005, InterContinental Hotels Group, one of the world's top hotel chains, brought its road show to Hong Kong, Shanghai and Beijing.

With the most hotel rooms in the world, the InterContinental chain has more than 3,500 hotels worldwide. It has 49 hotels in China and another 26 under construction.

Source:未知