ETn Despite the United States reaching a dead-end with China on a commitment and steps to reduce China's $202 billion trade surplus with the US, Chinese President Hu Jintao assured US President George W. Bush of future efforts to make the Chinese currency more flexible.  Talks fell short of US demands for a dramatic revaluation of the Chinese yuan as a way to make US products more competitive in Chinese and global markets and narrow the trade imbalance.

On the contrary, China is forging ahead with expanding markets in one aspect of its أ¢â‚¬إ“explodingأ¢â‚¬آ‌ economy-- tourism.

As a foreign currency earner, tourism took off much faster than the rest of the industry. It is one of the few sectors to first open to the world with a high degree of liberalization, according to a Chamber source.

So China is one of the fastest developing tourism economies in the world.  Travel and tourism's projected contribution to total GDP in 2006 is projected at 11.8 percent with overall share of jobs placed at 8.6 percent.

Spends on personal travel and tourism this year is expected at $ 99.159 million. In 2016, China will have spent $405.695 million in personal travel, growing its market the fastest in the whole world at a 9.9 percent annualized real growth starting next year until 2016, according to the World Travel & Tourism Council.

With business travel, China will spend $ 35.079 million this year ranking 6th on the world list, posting a 21.9 percent growth following Macau closely at number 2. But in 2016, China is expected to fall a close second to the US, in terms of business travel spends valued at $ 146.023 million and to score first in terms of the fastest annualized real growth at 10.1 percent between 2007 and 2016.

Capital investments are also going to surge this year with $135.096 million to be poured into China. This represents a 17.3 percent growth in capital investment for the Chinese. By 2016, China will have taken over all countries, including the US in investments, with $475.627 million raked in by the tourism industry. By which time, China visitor exports will have followed the US at $99.088 million and will have employed the most number of people at 12.390 million.

In a nutshell, it is truly and finally pay-back time, China.  Economic axes of world tourism are being tilted by super-growth in the country, said the WTTC. Economic change is easy to perceive with the Chinese far outstripping growth of leading developed nations. The predictable consequences are also easy to see. By 2025 current emerging economies will have attained predominance at world levels. Political change is evident. In April 2005, China and India signed histories trade and cooperation agreements after decades of mutual hostility establishing new links between two of the most populous and most rapidly growing nations in the world.

Positive tourism rends have been observed in the last years; the trade now confirms Chinese citizens' full involvement and interest in importing tourists, exporting itself as visitors and opening markets to a greater number of investors from the Middle East, Africa to the EU and US.

"China has worked hard to develop roads and airports but (we) are still not at a level that the travel market needs.  At present, the tourism sector is all state-owned. The new message is that private and foreign firms can come in under China's new United Nations World Tourism Organization commitments to finance raid, road and air infrastructure," said Wang Ping, chairman of the Chamber of Tourism Commerce, All China Federation of Industry Commerce. She added there is a change in the government's role. It is divesting and privatizing. "And the first companies to come in will be the ones that can derive the most benefit," she said.

At the Global Travel and Tourism Summit held in Washington DC, Wang announced China and the United Nations have established a China-African Association aimed at helping African countries. "We are now focused on the development of African countries with assistance from the UN." The chairman confirmed having completed a detailed plan to promote African countries to Chinese consumers. "In a few weeks, we will have an Africa Day to be held all-over China introducing tourism resources in our partner African countries. We would like to showcase the tribal heritage and culture of this continent."

As a developing country, China has made tremendous efforts to improve its own tourism infrastructure, as well as grab the attention of the global tourism players. Wang said China will be prepared to provide the largest supply of tourists by 2020 and by then, about 100 million Chinese will be traveling abroad every year.

As China posted unprecedented growth, its leaders continue to develop tourism as a major engine for economic boom. In the PRC State Council's March 2005 proposal on encouraging, developing and guiding non-public sector such as self-employed and privately-run businesses, all industries monopolized by the state such as power, telecommunications, railway, aviation, petroleum, weapons industries will be liberalized to the private sector. Meanwhile, the government will support the development of the private sector economy which will largely benefit tourism and privately-run travel enterprise.

Wang said that in the western China regions, they are creating policies making tourism a priority. "In the past four years, the central government has allocated portions of state treasury to the construction of tourism infrastructure, with focus on transport and improvement of the surroundings around the central and western regions. This endeavor has attracted a number of foreign and domestic capital," she said.

Total foreign investment has already reached the $500 billion mark, accounting for nearly 11 percent of the $450 billion total foreign capital accounted for in all sectors in China.

"In 2004, the EU opened its doors to China. This was followed by some countries in Africa and South America. The Sino-US MOU on travel cooperation was signed. All these indicate that the Chinese will travel en-masse, and that outbound tours in China will enter a new business era." Outbound Chinese travelers were estimated at 28.853 million in 2004 with growth of 42.68 percent that year alone.

In order to take advantage of this major windfall however, China needs to realize the full potential waiting to be released. According to the WTTC, the political and business class must show audacity and reject siege mentality calls for protectionism. Instead of introspection, fearfulness and negativism, changes should be welcomed and supported as offering new markets.