The U.S. Market

According to the UN World Travel Organization (UNWTO), China is the fastest growing travel market in the world, and is estimated to reach 100 million international travelers by 2020. According to the China National Tourism Administration (CNTA), China’s outbound travelers reached 40.95 million in 2007, an 18.6% increase over the previous year. China will continue to be the largest travel market in Asia.

The United States is becoming an increasingly popular destination for Chinese travelers. In 2007, China ranked as the 16th largest international market for the United States, with 397,405 Chinese visitors to the U.S. Chinese visitors spent a record $2.56 billion in the U.S. in 2007, with average expenditure of over $6,000 per person.

On December 11, 2007, the U.S. and China signed a memorandum of understanding (MOU) to facilitate Chinese group leisure travel from China to the United States. U.S. destinations can now market themselves in China, and the agreement also provides the necessary framework to permit group leisure travel from China to the United States. This agreement complements the expansion of air services that the United States and China agreed to at the May Strategic Economic Dialogue.

Prior to this agreement, Chinese travel agencies could only organize and market leisure tour group packages to countries that have a bilateral agreement with China, often referred to as Approved Destination Status (ADS) agreements. As of January 2008, China granted ADS status to 134 countries and regions, and implemented the program in 91 countries. The tourism MOU between China and the United States fulfills that function, and opens this market for U.S. companies. The U.S. travel and tourism industry will benefit from the tourism MOU. Chinese visitation to the U.S. has over 1M in 2010 and substantial yearly growth is expected.