OPINIONS

Destination: China

By Issy Scher
CITE Director International Sales & Marketing 
Kingsway Incentives China. 
E-mail: scher@destinationchina.com

TOURISM IN CHINA IS ON THE UP

Defying the current global downturn in the travel industry, China has reported a 10.5 per cent increase in tourism revenue for 2001. Tourism on the Chinese mainland continued to grow rapidly, reaching 499.5 billion yuan ($60.2 billion) for the year, the official China Daily reported. An even bigger market is expected this year, the report said, owing to supportive government policies and the country’s “safe, stable situation.” The statistics from the National Tourism Administration show that overseas visitors accounted for $17.8 billion of the tourism revenue and domestic travelers the remaining $42.4 billion. There were almost 90 million oversea visitors to the mainland last year --- an increase of 6.7per cent on the previous year. Most were from the Hong Kong and Macau Special Administrative Regions. Travelers from outside these Regions and Taiwan numbered 11.23 million.

XINTIANDI – SHANGHAI’S NEW URBAN TOURIST RESORT

Xintiandi features the fusion of East and West, new and old, where traditional Shikumen houses and modern buildings co-exist in harmony. Xintiandi was originally a cluster of old Shikumen houses --- and this project is the first to renovate these homes and turn them from a residential area into a commercial hub. The exteriors of the Shikumen houses have been restored to their original shapes and appearances, while the interiors have been designed to accommodate modern restaurants, bars, pubs, cafes, fashion shops, museums and art galleries. The central square also combines features of the modern city with Shanghainese tradition. The restoration of Shanghai Xintiandi draws on the successful experiences of other countries in re-use of old buildings. It brings to life old Shikumen alleys, providing a new urban resort for both residents and tourists. The project was only completed several months ago and is already attracting large crowds of tourists and expatriates. Alongside Xintiandi, the developers are erecting Corporate Avenue, to cater to the office needs of multi-national corporations, and the Lakeside Apartments project of deluxe residential properties

CHINA’S ‘FIREWATER’ GOES INTERNATIONAL

The Re The Red Army used it on the Long March. President Richard Nixon and premier Zhou Enlai toasted US-China relations with it at an official banquet in 1972. Now the makers of Moutai – China’s famous “firewater” drink – have developed a taste for capitalism and announced plans for a stock market flotation. The powerful drink that is the Chinese equivalent to whisky in Scotland or vodka in Russia could become a more common taste to international palates if efforts to raise 2bn yuan ($250m) are successful. The distillery group that owns Moutai describes it as “China’s national wine” and “refreshing, rich and sweet with a distinct after-taste”. It is widely drunk in China and is a favorite among politicians and diplomats.

CHINA’S ‘BIG THREE’ READY FOR AIRLINE MERGERS

Three Chinese mega-carriers will emerge under aviation industry consolidation plans approved by China’s State Council, according to a recent Reuters report. Air China, China Eastern Airlines and China Southern will form the core of the three airline groups, airline sources said. According to CNN, cabinet endorsement is the final green light required for the mergers.

Under the consolidation plan of the Civil Aviation Administration of China (CAAC), to boost the competitiveness of domestic airlines, the nine carriers under its direct control will merge into three groups.

China Southern will tie up with China Northern and Xinjiang Airlines to form the group with the biggest fleet of 180 aircraft, 50.1 billion yuan ($6.05 billion) in assets and more than 34,000 employees. Flag carrier Air China will merge with China Southwest Airlines and China National Aviation Corp. combining assets of 56.05 billion yuan, 118 planes and more than 20,300 employees. China Eastern will merge with Northwest Airlines and Yunnan Airlines to form a group with 47.3 billion yuan in assets, 118 planes and more than 25,000 employees.

The aim of the overhaul is to consolidate a fragmented aviation sector of about 30 carriers and create big, internationally competitive airlines. CNN further reported that while last year was the worst in the aviation industry’s history, China is regarded – according to analysts – as having the best prospects for growth in 2002.

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