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China's tourism industry will see robust growth and continue to be a cornerstone of the nation's economy and a major source of job creation over the next decade, according to the World Travel & Tourism Council (WTTC).

"China has the potential to become one of the world's great tourism economies in terms of inbound, domestic and outbound travel,'' said a WTTC report released yesterday to highlight the economic impact of travel and tourism on the Chinese mainland and the Hong Kong Special Administrative Region.

Two US tourists try making "Zanba" a staple food for some of China's ethnic groups, in a Dong minority village in South China's Guangxi Zhuang Autonomous Region last week. "Zanba" is made by pounding sticky rice in a stone mortar. [newsphoto.com.cn]

Despite the outbreak of SARS earlier this year, the China's travel and tourism sectors are on track for a rapid rebound.

"China's travel and tourism industries are expected to generate 1,536.7 billion yuan (US$183.6 billion) of economic activity in 2004,'' said Richard Miller, vice-president of WTTC's Research and Economics Unit.

The report said the sector will see a year-on-year 21.3 per cent increase in employment to 13.61 million in 2004, taking some 1.9 per cent of the country's total employment.

However, since travel and tourism touches all sectors of the economy, the real impact is even greater, said the report.Its contribution to China's gross domestic product (GDP) will hit 289.2 billion yuan (US$34.5 billion), equivalent to 2.3 per cent of China's total GDP, a figure that is still much lower than that of developed economies.

"This indicates that China still has great growth potential in this arena,'' said WTTC president Jean-Claude Baumgarten.

Launched in 1990, the WTTC is the business leaders' forum for travel and tourism, working with governments to raise awareness of the importance of one of the world's largest generators of wealth and jobs.

"Despite SARS, the baseline forecasts for China are staggering,'' said Baumgarten, "Over the next ten years the growth of travel and tourism demand in China is expected to make it the fourth fastest growing travel and tourism economy in the world.''

China, without taking account of Hong Kong, Macao and Taiwan, was ranked by the World Tourism Organization as the fifth most important tourism destination in the world, both in terms of international tourist arrivals and tourism receipts in 2002.

"SARS will certainly not undermine the growing importance of China in the medium to longer term,'' said the report.

According to the WTTC, China's travel and tourism sector will see an annual 10.9 per cent growth over the next ten years, with an annual growth rate of 3.8 per cent in employment.

Its contribution to China's GDP will likewise surge to 844.6 billion yuan (US$102.04 billion), tripling the projected 2004 total of 289.2 billion yuan (US$34.5 billion), the report said.

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