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Insights & Inspirations | Seizing Industry Trends and Market Opportunities-Showcasing the New Role of Tourism Enterprises on the Next Stage of Tourism Development

2024-11-06

October 30, at the WTA·Xianghu Dialogue 2024 in Sanya, Hainan, Mr. FAN Yunjun, Director and President of China Tourism GroupCorporation Limited, delivered a keynote speech on "Seizing Industry Trends and Market Opportunities-Showcasing theNew Role of Tourism Enterprises on the Next Stage of Tourism Development". Below is a summary of the key points discussed.

Insights & Inspirations | FAN Yunjun|Seizing Industry Trends and Market Opportunities-Showcasing the New Role of Tourism Enterprises on the Next Stage of Tourism Development

Today, I would like to focus on the development and opportunities of global tourism enterprises by sharing three key themes with you.

First, Recognize Opportunities — Establish Confidence in Growth Ahead. Tourism is widely regarded as a sunrise industry. On the international front, according to the latest data from the United Nations World Tourism Organization (UNWTO), international tourist arrivals in the first seven months of this year reached 96% of pre-pandemic levels, totaling around 790 million people, marking an 11% increase year-on-year. Domestically, in the first three quarters of this year, domestic trips in China reached 4.237 billion, up 15.3%, with total spending reaching 4.35 trillion yuan, a 17.9% increase, nearing 2019 peak levels. From October 2022 to October 2023, eight consecutive holiday periods have seen domestic trips and tourism spending surpass 2019 levels. The World Travel & Tourism Council predicts that in 2024, tourism will account for nearly 10% of China’s economy, rising to 14% within the next decade. From a policy perspective, national efforts to streamline visa-free entry, payment system, accommodations, and duty-free shopping have consistently removed barriers to tourism consumption. In May of this year, the national Tourism Development Conference was held, where President XI Jinping highlighted the strategic importance of promoting high-quality tourism development. With these strong indicators and supportive policies, we are confident in the bright future of the tourism industry, especially in an open and expansive market in China.

Second, Seizing Opportunities — Putting Customers First. On April 11, 2022, President XI Jinping visited the Duty Free Shopping Mall of China Tourism Group (CTG) in Sanya and underscored the importance of "attracting consumers with integrity and quality service". This directive conveys a "People-first, Customer-first" service philosophy, providing a foundational guideline for tourism enterprises to adapt to market changes and seize growth opportunities. To align with this vision, we focus on three areas: 1. Meeting Customer Needs with Innovation: Travel is no longer just about sightseeing, and tourists are increasingly seeking innovative, meaningful and fulfilling experiences. We have enhanced our capabilities in creating innovative IPs, launching unique offerings like the Diamond Hotel in Shapotou, Ningxia, and investing in new sectors like cruise tourism and tourist trains. Our goal is to infuse traditional tourism with fresh appeal and unique character. 2. Enhancing Customer Experience through Excellence: Service is at the heart of tourism and is essential for establishing a competitive edge. We are developing model sites for "Integrity and Quality Service", refining standards in niche markets like educational and inbound tourism, to meet personalized needs and enhance customer satisfaction. 3. Leveraging Technology for Customer Value: The widespread adoption of big data, cloud computing, and artificial intelligence provides tourism enterprises with favorable conditions to enhance customer value. We are accelerating our digital transformation, building platforms like CTG Integration to unify our membership systems and leverage our entire industry chain for a competitive advantage. In the first three quarters of this year, we added over six million new members, bringing the total to over 50 million. Our experience shows that, regardless of external changes, tourism must return to its core of serving consumers, adhering to a customer-first approach to meet personalized, diverse, and high-quality needs.

Third, Sharing Opportunities — Promoting Win-Win Cooperation. We are witnessing an accelerating shift in global dynamics. Shortly after the Third Plenary Session of the 20th CPC Central Committee emphasized the importance of implementing the Global Development Initiative, Global Security Initiative, and Global Civilization Initiative, the World Tourism Alliance (WTA) held the "Xianghu Dialogue" — a timely opportunity to articulate this vision. The theme “Better Tourism, Better Life, Better World” embodies the essence of contemporary tourism — open cooperation and mutual learning. As a central enterprise in tourism, CTG has taken several initiatives to enhance international collaboration and cultural exchange. We have established "one-stop inbound tourism service" counters at visa service centers abroad, hosted thematic forums at the China International Consumer Products Expo in Hainan, and organized “Discover China Cultural Tours” for foreign diplomats in various regions across China. These efforts not only build bridges of cultural exchange but also facilitate partnerships worldwide, boosting the growth of inbound and outbound tourism.

Insights & Inspirations | FAN Yunjun|Seizing Industry Trends and Market Opportunities-Showcasing the New Role of Tourism Enterprises on the Next Stage of Tourism Development

The Future is Now. As a founding member and council unit of the WTA, CTG will uphold the WTA’s mission. We will continue to leverage the WTA platform, strengthen exchanges with colleagues from around the world, and promote coordinated efforts across the industry, supply, value, and innovation chains. Together, we will seize emerging trends and opportunities, create new consumption experiences, and build a vibrant tourism ecosystem. Our shared goal is to fulfill people’s aspirations for a better life through tourism, and to shape an even brighter future for tourism as a public service and a source of happiness for all.