Tourism is an important part of China’s economy. It has created thousands of jobs, developed infrastructure, created a sense of cultural exchange between the citizens and foreigners, and boosted the economy’s revenue. The Chinese use the phrase “Zhong Guo,” which translates to “Country of the Center.” They have maintained a unique culture, since the ancient civilization that attracts tourists from all corners of the globe.
The country provides many great opportunities for entrepreneurs. However, if you are planning to establish a tourism company in the country, you should keep several facts in mind. Here is everything you should know.
Important Facts about China Tourism
The Chinese tourism industry is growing very fast, something that has made it an important pillar of the economy. The available statistics show that China stood as the fourth most visited country in the globe after France, the United States, and Spain in 2015. They also show that the country received over 56.9 foreign tourists in that year.
In 2017, revenue from the tourism industry was over $1.45 trillion and it contributed around 11.04 percent of the country’s GDP. That was an immense growth from 2014 when the industry only reported $943.1 billion. In 2017, the industry had employed over 28.25 million individuals directly and indirectly.
Some of the highly visited places are Anyang, Nanjing, Tongli, Chongqin, and Tianjin. Most people visiting the country also consider places like:
- Great Wall of China
- Silk Road
- Changbai Mountains
- Forbidden City
- Munt Tai
- Mount Emei
- Confucius Mansion
- Yabuli Ski Resort
- Potala Palace
China has many attractions. Therefore, more people are likely to visit the country in the coming years. Before establishing your tourism company in China, get conversant with many attractions so that your guests can enjoy their stay.
Starting Your Tourism Business in China
After understanding the Chinese Tourism industry, your next step should be learning the steps you have to follow when setting up a business in China. Here are the three important steps.
- Making the Decision to Expand Your Tourism Business to China
This is the most important step. Without taking this step, you will not establish any business in China. The decision to expand includes many things such as identifying the potential shareholders, sourcing of funds, and market research.
You have to keep in mind that the process of starting a tourism business in China is complicated. You will have to choose the type of tourism business you want to start. For example, you can start a Tour Company, travel agency, or even a resort. After that, you will have to decide on the location and the source of money to finance it. Remember to do adequate market research to avoid making losses.
- Complete the Company Incorporation Stage
This stage requires you to decide on the formation of your tourism company. Some people choose a wholly foreign-owned enterprise (WFOE) while others will choose to start a joint venture. Keep in mind that the type of business you form will influence the type of activities you will undertake and the share of profit/losses you will get at the end of the day.
The process of incorporating a company in China is complicated. Therefore, most people will choose agencies to help them navigate the involved problems. An agency will help you prepare all the necessary documents and work through the departments involved in tourism company registration.
The Chinese tourism industry offers many opportunities for investors. You can take advantage of the opportunities to expand your business. Keep in mind that many players are working in the industry. Therefore, you have to come up with a good strategy to make a profit. Work with experts from the start to avoid making losses.
- Commence Your Business Operations
Registration of your tourism company in China is the start of a long journey. For example, you will need the right infrastructure and staff to start your operations when establishing a travel company. Further, you will need cameras, tour vehicles, and experienced tour guides. You do not want your foreign clients to miss one of the key attractions in China.
If you have been looking for high-potential investment areas, consider the Chinese tourism industry. The industry offers many opportunities for individuals that would want to expand their travel business to China. Remember to develop a strategy for growth before establishing the business. You may also need the services of an expert.