Top Biz News

Travel market set to fully open

By Xin Dingding (China Daily)
Updated: 2007-05-19 08:44

China is to fully open its market to foreign travel agencies from July 1, about four months ahead of the November 11 deadline set by the World Trade Organization (WTO), said a senior official.

This means foreign-funded travel agencies can set up subsidiaries in China without restrictions, and requirements on the registered capital of foreign-funded travel agencies will also be eased.

Shao Qiwei, head of the China National Tourism Administration, told China Daily the full opening-up of China's tourism industry will further boost the industry's overall quality and improve its competitiveness in the world.

"We welcome the entry of the world's big tourism companies and well-known brand names into China. It will help enhance the competitiveness of Chinese tourism enterprises," he said.

Although as agreed with the WTO, joint-venture and solely foreign-funded agencies cannot operate outbound tours, the full opening-up is still good news for overseas investors. China has the largest domestic tourism market and is the world's fourth most popular destination.

Official statistics show the number of domestic travelers last year was 1.39 billion, and the administration forecasts the number will be 1.78 billion by 2010.

Attracted by the lucrative market, 25 solely foreign-funded travel agencies have been set up in China in the past five years.