President Obama of the USA and President Hu of China
AmericaTowne also supports the initiatives signed by President Hu and President Obama to develop Sino-US relations based upon mutual respect and mutual benefit. We expect to replicate AmericaTowne in a number of Chinese cities.
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.
Over the next five years, Yilaimei will generate approximately $262 million in revenues from AmericaTowne of which $107 million dollars in revenues will be accounted for by the USA based exporting business.
We anticipate that within AmericaTowne 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 AmericaTowneconcept 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 export and implement the AmericaTowne Foreign Wine Market Business which is a subset of the overall AmericaTowne business plan.
Another $50 million dollars in revenue is expected from "AmericaStreet" and break out businesses including markets developed by participating in the Department of Agriculture and SUSTA Export programs.
"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."