摘要:This report aims to promote a new travel agency, which is a subordinate travel agency to China Travel Service. China Travel Service is a short term of China Travel Service Head Office Co., Ltd
h the Chinese traditional culture and the open information from outside. Travel has always been a good way to gain life experience, knowledge and sophisticate for Chinese people. However, not so many people have the chance to realize it especially to travel overseas by the limitation of political policy and financial shortage. Thus, when the limitation does not exist anymore, the people are willing to see the world in person.
Besides, with the open policy since 80s last century, exotic culture entered to china. The information exchange with foreign countries gives the people chance to know the difference in tradition, value and view. That difference attracts people to experience. So the oversea travel becomes a new popular trend in Chinese tourism industry.
Current Market and Competition Analysis
For the past four years, the oversea travel population keeps increasing positively. Especially in 2007, with the bloom of global economy, the over sea travel of Chinese annually increased 18.6%. Most part of overseas travel in china is private travel. The general percentage of private oversea travel can occupy over 83% of the total oversea. The private oversea travel, as the main target customer of the "EE" travel agency, implies a very large potential market for us.
However, the potential does not stop here. Although the population of the people who travel in foreign countries privately is around 42 million, which is already more than the whole population in some countries, it only occupies around 3.2 % of the total population in china. So for the travel service industry, the real potential is the unexplored market. With the growth rate of private oversea travel at a fast speed, our agency does not just compete with other participants; we are sharing a big and growing "cake".
Table 2: Chinese Oversea Travel Statistics from 2006 to 2009
2006 2007 2008 2009
Oversea Travel
Population 34520000 40950000 45840000 47660000
Growth Rate 11.3% 18.6% 11.9% 4.0%
Private Oversea Travel
Population 28800000 34920000 40130000 42210000
Growth Rate 14.6% 21.3% 14.9% 5.2%
% of oversea travel 83.4% 85.3% 87.5% 88.6%
Source: National Bureau of Statistics of China.
Related Policy
Oversea travel liberalization
The related policies in china liberate the oversea travel step by step. In the past, people are not allowed to go abroad for private travel, mostly with the consideration of politic. Only a few of governmental officers and people who have special authority have the chance to go to foreign countries.
However, with the application of open policy since 80s last century, the oversea travel became much easier to do. In 1983, the private oversea travel was officially permitted (Bailey, 1994). Then the policies further liberated the travel to Southeast Asian areas organizated by travel service agency and the distance is furthered to United States and Europe in 1993 (Bailey, 1994).
There are also some other policies related to the liberalization of private oversea travel. For instance, the application for a private passport took a very long time. And with the new policy in 1995, people can get the private passport in a month. And the application time is further shorted to be 10 days. (Ministry of China'
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