2025-11-29
At the 2025 WTA • Xianghu Dialogue held recently in Hangzhou, China, Mr. Fan Yunjun, Director and President of China Tourism Group Corporation Limited, delivered a keynote speech titled "One World, Shared Aspirations — Advancing ESG for a Sustainable and Thriving Future of Tourism". The following is an excerpt from his address.
Hangzhou, with its picturesque lakes and mountains, profound cultural heritage, and high quality of life, offers a compelling case for exploring the principles of ESG (Environmental, Social, and Governance) in tourism. The ESG framework — centered on environmental care, social responsibility, and sound governance — provides valuable guidance for the sustainable development of our industry.
Part I: Embrace the Development Philosophy and Align with the Principles of Sustainable Tourism.
At its heart, an ESG strategy defines how we engage with our customers, employees, shareholders, industry partners, the environment, and society at large. As a tourism enterprise, we view sustainability as a commitment to improving the lives of every stakeholder. (1) Enhancing the Customer Experience. Customers form the very foundation upon which an enterprise stands. By continuously creating value, we can better fulfill people’s aspirations for a better life. This is both our core mission and the driving force behind our growth. (2) Supporting Employee Growth. Employees represent the most valuable asset of any organization. Without their well-being and fulfillment, a company cannot thrive. They are the cornerstone of our sustainable future. (3) Delivering Value to Shareholders. Shareholders are not just investors — they are steadfast long-term partners. Generating returns for them is both our responsibility and a fundamental driver of sustainable development. (4) Strengthening the Industry Ecosystem. Modern industries develop as interconnected ecosystems where partners across the industrial, supply, and value chains act as essential collaborators and enablers. Only by building a healthy and cooperative ecosystem can we secure the long‑term growth of every participant. (5) Contributing to Society and the Environment. Society and the natural environment provide the essential foundation for enterprise growth. Protecting nature and giving back to the community are intrinsic responsibilities of sustainable business.
As the only central state-owned enterprise in China dedicated primarily to tourism — and a century-old national brand — China Tourism Group (CTG) embraces its pioneering role. We bear economic, social, and political responsibilities by driving technological innovation, enhancing industrial stewardship, and ensuring operational safety. Guided by the mission of "Serve the State and Public with High-quality Tourism Service", and upholding the principle of "Integrity Operation and Quality Service", we are building a world-class tourism group characterized by exceptional products, distinguished brand, innovation leadership, and modern governance. In line with this vision, we dedicate ourselves to generating sustainable value for all five key stakeholder groups through focused initiatives.
1. Adhere to the initial commitment of serving the general public and deliver value to customers. We remain committed to the philosophy of "Put People And Their Lives First", continuously improving our safety management system, strengthening risk identification and control, and upholding the bottom line of safe operations. We ensure authentic products and fair pricing, earning customer trust through integrity and transparency. We also keep refining our service standards and processes, striving to meet, and exceed, customer expectations in every detail.
2. We adhere to the goal of uniting hearts and pooling strength to create value for employees. We focus on enhancing employees’ sense of security, belonging, and achievement by offering comprehensive benefits and competitive compensation packages. We strengthen employee representative congresses and labor unions to safeguard employees’ right to know and to participate. We also build a multi-dimensional talent development system with clear career pathways, ensuring that every employee has the opportunity to realize their full potential.
3. We shall uphold the fundamental principle of serving the country through tourism and deliver sustained value to our shareholders. As a central government-owned enterprise, we embrace our national mission — serving national strategies, representing China’s image, and to make state capital stronger, better, and bigger. For instance, we actively support the Hainan Free Trade Port initiative, becoming the first central enterprise to establish its domestic headquarters in Hainan. Over the past seven years, our revenue in Hainan has grown fivefold, and visitor services sixfold, achieving a full value chain presence spanning duty-free shopping, accommodation, dining, transportation, sightseeing, entertainment, and retail.
4. We adhere to the vision of openness and sharing, and create value for the industry. We have signed strategic cooperation agreements with over 20 provinces and municipalities, jointly developing premium cultural and tourism projects. We deepen cooperation among central government-owned, state-owned, and private enterprises, fostering mutually beneficial partnerships. We also strengthen industry-academia-research collaboration, working with universities in mainland China, Hong Kong, and Macao to advance innovation and talent cultivation across the tourism sector.
5. Uphold the pursuit of green development and coordination, and create value for society. We actively practice the principle that "lucid waters and lush mountains are invaluable assets", coordinating environmental protection and tourism development. In Huanggang Village, Liping County, Guizhou, we transformed traditional Dong-style granaries into boutique homestays, helping to increase the income of 313 households and 1,601 residents. In October 2025, the village was recognized by the United Nations World Tourism Organization (UNWTO) as one of the "Best Tourism Villages".
Part II. Chart a Path Toward Sustainable Development Rooted in Operational Realities
With over a century of development, China Tourism Group has built a comprehensive tourism industry chain spanning travel agencies, scenic areas, hotels, duty-free retail, transportation, cruises, cultural innovation, and real estate, with a network covering mainland China, Hong Kong, Macao, and more than 30 countries and regions worldwide. Our duty-free business encompasses nine major product categories, over 200 physical stores, and a global online sales network. We invest in and operate more than 60 cultural and tourism attractions, including 17 national 5A and 21 national 4A scenic areas. Our travel operations integrate agency, MICE, corporate travel, ticketing, and visa services, under renowned brands such as CTSHK, CTG, CITS, and CDF. Our cruise division operates four large cruise ships, forming the largest cruise fleet in Asia. Each business segment is actively exploring sustainable development practices.
Looking at our duty-free business, we pursue sustainable development through three distinct growth trajectories: (1) Consolidating Our Core Duty-Free Retail Business. We collaborate directly with over 1,500 international brands, enabling direct sourcing for full supply-chain quality control. Consumers can scan a QR code to trace a product’s complete journey, guaranteeing 100% authenticity. Our scale-based procurement strategy gives us strong bargaining power, allowing us to offer market-competitive prices while upholding this authenticity promise. (2) Expanding into New Travel Retail Markets. We pioneered an integrated operational model combining: airport and downtown stores; imported and domestic goods; duty-free, duty-paid, and tax-refund services; online and offline channels; and domestic and international operations. In the first half of 2025, this channel welcomed over 200 new brands, achieving sales growth exceeding 50% year-on-year. Sales of over 80 newly introduced domestic brands increased by 12% year-on-year. (3) Cultivating New Drivers in Quality Retail. Leveraging a base of over 50 million members, deep customer insights, and robust supply chain capabilities, we are evolving into a platform-based enterprise. The Sanya International Duty Free Shopping Complex exemplifies this shift. By adopting a "culture & tourism+" model, it transcends traditional commerce through art exhibitions, fashion shows, cultural performances, and IP collaborations, creating a rich leisure-shopping experience. Its designation as a National 4A-Level Tourist Attraction in 2025 marks its successful transformation into an integrated "culture-commerce-tourism-wellness" destination.
Meanwhile, our tourism services and destination businesses are guided by three core principles — intelligence, green development, and integration — as we pursue sustainable growth. (1) Promoting Technological Empowerment to Enhance Service Quality. We are developing the China Inbound Tourism Service Provider Information Platform and establishing the official national tourism image portal. We actively participate in 5G and cloud computing innovation consortia, exploring their applications in the tourism industry. In collaboration with CRRC (China Railway Rolling Stock Corporation), we are building China’s first cross-border tourism train, the Star Express · Lancang-Mekong, as well as the first panoramic sightseeing train in the Beijing-Tianjin-Hebei region, the Star Express · Yan-Zhao. Meanwhile, the CTG Travel App has been upgraded with AI-powered cloud concierge services, offering real-time itinerary planning and personalized recommendations. Since its relaunch in July, our membership base has doubled. (2) Promoting the Concept that "Lucid Waters and Lush Mountains Are Invaluable Assets" to Safeguard the Environment. At Zhejiang’s Qiandao Lake Scenic Area, we have implemented comprehensive environmental management systems that seamlessly integrate ecological conservation with operational efficiency. In Anji Hele Valley, following the principle of minimal intervention, we transformed an abandoned quarry into an ecotourism landmark, now welcoming over 300,000 visitors annually. In Shapotou Scenic Area, Ningxia, we integrated desert, Yellow River, and night-sky resources to create innovative tourism products such as a desert-themed hotel, turning traditional sightseeing into an immersive desert culture experience. Our winter sports division currently operates seven ski resorts and 115 trails nationwide, attracting nearly 2 million visitors each year — transforming "cold resources" into a "hot economy". (3) Promote the integration of culture and tourism to serve social development. In 2024, we held a Panda Carnival in Hong Kong, celebrating the city’s beloved giant pandas, An An and Ke Ke — gifts from the central government. The event attracted over two million visitors. In 2025, we will organize the "HELLO PANDAS An An & Ke Ke Welcome the National Games" event in Guangzhou, featuring themed cruises, concerts, and traditional sports competitions to invigorate the Greater Bay Area’s cultural tourism economy. Our cruise division is launching the "Echoes of Dunhuang" themed voyage and the interactive stage play Nezha Conquers the Dragon King, while partnering with the China National Peking Opera Company to create a Peking Opera-themed cruise season, bringing Chinese culture to global audiences.
One World, One Aspiration. Forging a bright future for global tourism summons our united endeavor. On behalf of China Tourism Group, I call on tourism professionals around the world to: seize the opportunities of industrial transformation and become creators of value; embrace the philosophy of sustainable development and become leaders of the industry; and contribute to building a community with a shared future for humankind and become champions of cultural exchange and mutual learning. Let us join hands to build a tourism industry that is more prosperous, inclusive, and beautiful.