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Traveling, but not so far

By Sun Xiaohua (China Daily)
Updated: 2009-03-23 07:43

China and the United States signed an agreement in December 2007 that allowed Chinese travel agencies to market package tours to American destinations and permitted US destinations to advertise directly to the Chinese public. [Xinhua]

Chen Lingling, a government worker in Beijing, recently decided to postpone a long-awaited trip to France and visit Xiamen, in Fujian province, for her annual spring journey.

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"Considering the current economic situation, my husband and I decided to save our money," said Chen, whose spouse works for a bank. The couple bought their first car, a $30,000 Volkswagen Sagitar, last year, and have a $440 monthly mortgage on their home.

"Although our jobs seem secure now, who knows what will happen?" Chen said. One of her best friends got laid off from a trading company a few days ago, reminding Chen that she might not be immune to the financial crisis.

Chen and her husband enjoyed an economical vacation in Xiamen. They used their award miles on Air China to get free tickets, which saved them $1,000. For the first time, they did not check into a luxury hotel, but booked a cozy room in a designer hotel, retrofitted from an old house, for about $30 a day. They did no shopping, and hardly spent any money except for food.

Like Chen, many Chinese will be traveling less or taking shorter trips this year.

"Many people will decide against a trip to the US or EU in favor of a shorter journey inside China or to an Asian country because of the financial crisis," said Li Ying, a senior editor for the monthly magazine Traveler, which is affiliated with National Geographic.

The magazine plans to increase its domestic tours from 40 to 60 percent this year, Li said.

The National Tourism Administration estimates that in 2009, Chinese travelers will take 1.8 billion passenger trips within Chinese mainland and 50 million passenger trips outside the mainland. Both figures are about 9 percent higher than last year.

"Because of the financial crisis, China hopes to keep Chinese travelers in the country to spur the economy," Li said.

Hangzhou, a scenic city in east China, released tour vouchers worth $22 million to its residents to stimulate the local economy. Hunan province and the city of Nanjing have taken similar steps, and Beijing is hatching a plan called "Beijingers Traveling in Beijing" to spur local tourism.

Travel outside the mainland is becoming less popular, although travel agencies have cut the price of traveling to the US and EU countries in half, according to Guo Yu, Assistant General Manager of Beijing Mytour International Travel Agency.

South Korea is still a popular destination because of the recent devaluation of its currency.

"The exchange rate dropped from 80 won to the yuan to 210 won to the yuan last year," Guo said. "My agency launched a weekend shopping trip to South Korea, which was well received."

American and European countries have cut their spending on media advertising, but continue to support travel agencies, hoping the agencies can bring Chinese travelers to their countries, according to Li.

Major airlines are hoping to lure Chinese travelers with discounted tickets. British Airways offers round-trip tickets between China and Britain for $433; a round-trip ticket from Beijing to Washington DC currently costs $660.

Some Asian countries, like Singapore, have increased their budget on both media and travel agencies. Singapore, which is nearby and Chinese-speaking, is a popular choice for a first trip abroad because of its rich variety of food and good shopping, Li said.