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Government Push Benefits RV and Campground Industries PDF Print E-mail
Written by CRVC   
Tuesday, 22 December 2009 00:00

The Chinese government is pushing hard to promote consumer spending on travel and vacations. The State Council, China’s highest administrative authority, calls for rapid growth of the tourism industry. In the recently released “The State Council’s Suggestions on the Tourism Industry,” the top executive administration gives the industry “strategic pillar industry” status – prioritized for favorable treatments in finance, taxes, resource allocation, land use, and many other incentives.

China National Tourism Administration (CNTA), which is charged to coordinate and implement the “suggestions”, hails the new executive initiative as “the milestone in the history of the tourism industry.” The initiative calls for 10% annual growth thru 2015 for the domestic tourist market, i.e., 3.3 billion tourists a year. Inbound (foreign) and outbound tourists will add another 173 million. Tourist spending will account for 10% of the domestic consumer consumption.

For the RV and campground industries, the significance of the initiative comes in the following areas.

First of all, the initiative puts RV manufacturing under the categories of “encouraged industries”. The government wants more programs and services to provide leisure travel, family vacations, educational tours, sports travel, camping, and other outdoor healthy lifestyles. RVs are considered a means to facilitate many leisure and recreational activities. This reflects the maturing of traditional sightseeing tourist market and consumers’ demand for greater varieties and more self-guided travel and tour options.

The initiative also calls for increased investment in infrastructure development, including expanding “National Tourism Destinations”. Investments from local governments and private enterprises are encouraged to develop regional attractions for tourists and vacationers. Favorable policies will be issued towards land use for the tourism and hospitality industries, which can have a significant impact on campground development in China where lack of RV parks and campgrounds has been the major hurdle for the RV industry.

The initiative proposes to draft and implement the “Principles of National Leisure Travel Guidelines,” to establish the “National Tourist Day,” and to promote paid vacations. All these measures will encourage more and more families to spend more time away from home for vacations and leisure activities.

China still has a long way to go before a more RV friendly infrastructure and regulatory environment will be in place. However, the significance of these “suggestions” could not be overemphasized. Businesses interested in China need to pay close attention to the developments in the country so that they are not left out of any opportunities in the emerging RV market.