AmericaTowne is unique solution to a big challenge

1. AmericaTowne is unique solution to a big challenge. 

The demand for leisure and tourism activities in China is greater than the supply. AmericaTowne provides people in China with a unique place to go like no other place in the world to spend their tourism and leisure time.

2. The Challenge

For the first time ever, last year, China experienced a deficit in tourism. Chinese tourist going abroad spent $4 billion dollars more than foreign tourist spent in China.  The domestic tourism and leisure market within China is huge compared to the market where citizens go outside of China.

Last year Chinese people made 1.9 billion trips within China. This year tourism trips are expected to grow by 12 percent to 2.1 billion trips. These trips within China will generate 1.1 trillion yuan of spending, an increase of 14 per cent from last year's forecasts. Nationally, tourism has been designated as a growth area that must be supported.

3. The Solution

Build AmericaTowne in Hengshui Lake Ecological City, Hebei China to meet the growing demand by citizens for more leisure and tourism opportunities.

AmericaTowne takes advantage of the increased demand for tourism and leisure providing unique one of kind places for people to go spend their leisure time. Situated on 33 plus acres in Hengshui Lake, a pristine ecological designated National Natural Reserve, AmericaTowne provides tourist with 50 unique businesses, a 4 star hotel, and 48 villas all fashioned after the American way, business, and life style. Actual businesses, hotels, and villas found in the USA can be found in AmericaTowne. In short, AmericaTowne brings a slice of America to China.

AmericaTowne in Hengshui City meets the challenge of helping China reduce its tourist deficit by attracting more inbound tourist and keeping more Chinese citizens at home to enjoy a slice of America. 

4. The Opportunity

China’s economy is robust. People in China are prospering; many people are making more money and are looking for more places to go to enjoy leisure and tourism. Today and in the foreseeable future, in China, the demand for leisure activities is outstripping the supply of leisure and tourism activities.

Chinese State Councilor Liu Yandong has called for more efforts to promote international exchanges and cooperation in tourism.

"Tourism is a promising and green sector with advantages in developing related sectors, providing jobs and relatively low consumption of resources. Boosting tourism is a key way to extend economic growth and achieve sustainable social and economic development", Liu said.

"With huge potential, China’s tourism is entering a golden period and the government is willing to join with other countries to boost tourism development," Liu said.

Chinese tourists are likely to spend US$100 billion on overseas trips in 2015, Shao Qiwei, head of the China National Tourism Administration, has forecast. The projection is based on every Chinese tourist currently spending US$1,000 on each outbound trip and the estimation that Chinese tourists will make 100 million overseas trips by 2015.

China's travel market has nearly doubled in less than a decade. It received more than 26.4 million foreign visitors in 2009 (excluding Hong Kong and Macau) compared with 14.6 million in 2001, according to the China National Tourist Office. Domestic travel is growing at a dizzying pace. From 2005 through 2007, the number of domestic visits grew 30% to 1.6 billion, the office's latest data show.

The surging demand is fueling a boom of unprecedented scale. The number of hotels in China has nearly doubled to 14,100 in 2008 from 7,400 in 2001, says travel consulting firm Horwath HTL. About 10% are international chains. And those figures don't include domestic properties that aren't rated at least one-star quality (five being the best) by the Chinese government.

As of the second quarter this year, another 1,200 were under construction or in development, according to research firm Lodging Econometrics. It's the highest level the firm has ever recorded. China trails only the U.S. in the number of projects under construction.

In the meantime, the deficit in tourism is expected to increase to US$6 billion this year, up from China's first deficit in tourism last year of around US$4 billion, he said.

Major cities like Beijing and others understand the boom in tourism and they are drafting a blue print for success.  Beijing has set an ambitious goal for the capital to play host to more than 10 million international visitors annually. "We are working hard to increase our tourism income to contribute at least 10 percent of Beijing GDP, and reap an annual income of more than $10 billion from foreign tourists," according to Ding Xiangyang, Beijing vice-mayor.

Despite that positive outlook, Ding pointed out the challenges faced by Beijing tourism industry, saying, "Beijing lacks a sufficient supply of recreational tourist projects such as theme parks like Disneyland as well as high-end tourist products such as convention and exhibition events."

5. Our Competitive Advantage

Our competitive advantage is that there is no other place in China or the world that displays the AmericaTowneconcept. In addition, Hengshui Lake Ecological center is one of the very few Natural Nature Reserves in China. While other cities in China may have the typical Kentucky Fried Chicken, or McDonald’s franchises, no-where can there be found in China a complete community of 50 businesses, a hotel, and villas all designed, styled after and depicts the American way and spirit. Businesses, hotels, and villas as they are found in the USA are found in AmericaTowne allowing tourists throughout China and elsewhere to experience the finest in American culture, life style and business.

6. The Model

The AmericaTowne business model for generating revenue is unique. Additionally, the model is leverageable and scaleable. Revenues will be generated from the sale or lease and operations of the businesses; the operations of the hotel and villas; and from the operations and management of the properties that carry a 40 year plus life cycle. Within three years we expect overall revenues to reach $50 mil USD. By 2019, we expect to have 20 AmericaTownes across China with an investment sum of $1.2 billion, generating thousands of jobs, and hundreds of thousands of dollars in tax revenue.

We are developing 20 AmericaTownes across China. Within AmericaTowne, we anticipate that 5 to 8 of these businesses will be what we called break out businesses. 

We anticipate that in at least 5 to 8 cases the demand by the consumer for the product, service or idea will exceed the supply. This product, service or idea will move beyond the AmericaTowne concept and will catch on, be accepted and demanded by the general consumer in China.

Initially, this product, service or idea will be a part of AmericaTowne and will be developed into a breakout growth business of its own outside of AmericaTowne. China’s Foreign Wine Market has been identified as a tremendous growth area and with possible breakout potential. Because of this breakout business potential, action is already underway to implement the AmericaTowne Foreign Wine Market Business which is a subset of the overall AmericaTowne business plan.