Unit 5

Passport to Adventure

"What a great wall!" ~ Richard Nixon

More than 1 000 000 labourers were recruited for the construction of this huge project.

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Finances

Economic Value

As of 2015, China is the fourth most visited country in the world with 56.9 million international tourists per year. China ranks second in the world for travel and tourism's contribution to the GDP ($943.1 billion in 2014) and first in the world for travel and tourism's contribution to employment (66,086,000 jobs in 2014). With the current promotion of Chinese tourism, these numbers and revenue dollars are predicted to grow. With The Great Wall of China acting as the number one tourist destination in the country, it is obviously a key component in attracting and maintaining these tourist dollars.

The Multiplier Effect

Tourism is a huge labour intensive industry that generates lots of jobs and has a large multiplier effect. Not only does it create jobs for people working in the tourist industry itself but it also produces jobs in construction, transportation, agriculture, craft production, fishing, and livestock raising.

Revenue Leakage

When travellers spend money at a destination, not all of it remains in their economy as some goods and services need to be imported. This represents "leakage" to the economic value produced.

For successful tourism to occur, basic infrastructure like roads, visitor centres, and hotels must be built. With the age and nature of The Great Wall, there is the addition of significant upkeep costs. These costs usually fall on the government, which in turn comes out of tax revenues. Jobs created by tourism are often seasonal and poorly paid, yet Chinese tourism will push up local property prices and the costs of local goods and services. These tourism dollars do not always benefit the local community, as some of it is leaking out to huge international companies such as hotel chains.

Balance of Payments

Balance of payments is the difference between tourist dollars spent between two or more countries. If the tourist dollars spent locally are higher, there is a surplus. When the tourist dollars spent outside the country are higher, a deficit occurs. Ideally, there should be neither a surplus not deficit, thus the term referenced, "balance of payments."

Five years ago, China earned a surplus from cross-border travel. Visitors from outside the mainland spent more in China than the mainland's own travellers spent overseas. However, trends in recent years show that these are dropping, likely due to a decrease in the strength of China's currency. With China's large economy, there is some international concern.

Marketing

Government Help

The Chinese government has made a conscious effort to attract foreigners to China. As soon as the 2008 Summer Olympics in Beijing was secured, China emphasized tourism as a national priority. Beijing is also the host of the upcoming 2022 Winter Olympics. In 2015, China President Xi Jinping described tourism as "an important driving force for economic development." By 2025, it is estimated that China will invest approximately 90% more in the travel and tourism industry and it did in 2015.

In an innovative step, the China National Tourism Administration has issued guidelines ahead of major travel holidays to remind Chinese outgoing tourists to be civilized when travelling. According to a nation-wide advertising campaign, this includes distribution of a civilized tourist behavior guidebook. The government's approach reveals a clear desire for Chinese nationals to be perceived positively around the globe, thereby improving China's international public image. Their belief is, if the image of Chinese travellers is positive, foreign travellers will be more likely to visit China.

Staffing

Staff Skills Requirements

Multi-linguistic skills (eg. English, Japanese)
Understanding of China history and cultural relics
Understanding of tourism laws and regulations
Management skills
Wall structural maintenance skills

The Management