BIZCHINA / Transportation
10th Five-Year Plan
Updated: 2006-04-18 15:04
The Tenth Five-Year Plan of
BIZCHINA / Tourism
10th Five-Year Plan
Updated: 2006-04-18 16:48
The Tenth Five-Year Plan of the Travel Agency Industry and its Development
Travel agencies have experienced rapid development in China in recent
years. However, problems like market disorder, non-standardized service
and irrational structure do exist. During the 10th Five-Year Plan
(2001-05) period, China will focus its efforts on reforming the industry.
1. Quantitative control
The quantity of the travel agencies is already large enough to basically
meet the needs of the market development in the next 5 years. During the
period of the 10th Five-Year Plan, the growth rate of travel agencies
will be controlled between 8 and 10 percent, meaning some 500 and 600 new
agencies will be approved for business operation.
The new travel agencies should be: a. international travel agencies set
up to fill blanks either at regional level or in newly developed tourism
sites; or, b. domestic travel agencies set up to fill blanks at county
level; or, c. international or domestic travel agencies approved to be
set up to attract large enterprises into the tourism industry.
2. Structural adjustment
The emphasis will be on developing group companies and a national
network. The objective of the optimization of the structure of the travel
agencies is to gradually form pyramid shape structure.
On top of the pyramid, there will be a few large group companies
occupying big market shares. They will be the dominating force in the
market. They will enjoy such advantages as funds, brands, business scale
while competing with their counterparts.
In the middle of the pyramid are those medium-size specialized travel
agencies. Each enterprise finds its own position in the various
specialized segments of the market.
The vast majority of travel agencies lying at the bottom part of the
pyramid are those small-size travel agencies, which will eventually
become the network of the larger ones.
Generally speaking, China needs a dozen large travel agency groups each
consisting of several hundred or even over a thousand small branch
agencies in a bid to help stabilize the market, standardize the
management develop themselves strong enough to compete with those large
international groups.
During the "10th Five-Year Plan" period, China will first try to create
the environment and conditions for the creation of large travel agencies
groups. Secondly, the restrictions of departments and administrative
divisions will be lifted to promote the development of a uniform national
tourism market. Thirdly, the construction of the retailing shops for
travel agencies will be strengthened to make a number of small travel
agencies the retailing shops of large travel agencies to help promote
development of a national network.
3. Mechanism reform
All kinds of travel agencies, especially those large travel agencies,
should implement an all-round reform of modern enterprise system in
compliance with the requirements of the Enterprise Law and relevant
policies to achieve the objectives of clear ownership, the separation of
government and enterprises; a clear cut between responsibilities and
power and scientific management.
To promote the network development of travel agencies, various types of
ownership, like joint-stock enterprises can be applied. Innovation in
management will be encouraged and the current modes of production, that
is, department contracting system and individual affiliation will be
changed to meet the requirements of knowledge economy.
4. Quality enhancement
During the "10th Five-Year Plan" period, the development of the travel
agencies will not be reflected by quantity increase but by quality
increase. Efforts will be made to enhance the capability of developing
customer sources internationally and the competitiveness in the domestic
market of the travel agencies. They will also improve development of new
products and internal management to upgrade the enterprises thoroughly.
To achieve this, the quality of the managers and staff of the travel
agencies should be improved in order to renew their knowledge to deal
better with the challenge China Faces after joining the WTO.
The Status Quo of the industry's development
By the end of 2001, the total number of travel agencies all over China
reached 10,716, an increase of 1,723 travel agencies, up 19.16 percent
over that of 2000. The number of international travel agencies reached
1,319 from 1,268 in 2000, an increase of 51 travel agencies, up 4.03
percent. The quantity of domestic travel agencies reached 9,397, 1,671
travel agencies more than the 7,726 in 2000, up 21.63 percent.
The total assets (both fixed assets and current assets) of all travel
agencies amounted to 41.547 billion yuan, a 13.55 percent increase over
that of 2000. The total amount of liabilities was 19.908 billion yuan, an
increase of 2.07 percent overt hat of 2000. The ownership rights amounted
to 21.639 billion yuan, up 26.64 percent. The total registered capital
reached 13.063 billion, up 15.39percent.
The change in the assets situation shows that the travel agencies have
been further solidified and that liabilities have been decreased. In
2001, the number of employees of the travel agencies was 192,400 (Of
them, 84,600 were tourist guides, 8,700 tour group leaders, 22,100
accountants and 44,600 management staff.), 17.11 percent more than that
of 2000. The rate of travel agencies buying responsibility insurance
reached 85.32 percent. The total amount of insurance premium paid by
various types of travel agencies hit 113 million yuan( international
travel agencies paid 44.19 million and domestic travel agencies paid
69.16 million yuan.)
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the Communications and Transportation
Industry and Its Development
The long-term strategic goal for China's communications and transport
development is to build an intellectual, comprehensive communications and
transport system with the focus on fast transport of passengers, freights
and logistics.
The targets during the 10th Five-Year Plan period (2001-2005) are to
basically establish a complete communications and transport market system
by way of deepening the reform; continue to strengthen overall transport
capacity, further rationalize the structure and improve the quality of
transport; establish a fast passenger transport system between major
cities, and form a diversified and coordinate container shipping system,
a bulk goods shipping system and a special-material shipping system; and
make good use of information technology and network to accelerate the
development of intellectual transport, promote modern logistics system
development in economically developed areas.
Cargo transport mileage by various means totaled 4,630.4 billion tons/km
in 2001, up 4.8 percent over the previous year. Included were 1,457.5
billion tons/km by railway, up 6.7 percent; 618 billion tons/km by
highway, up 0.8 percent; 2,486 billion tons/km by water, up 4.7 percent;
and 4.4 billion tons/km by air, up 3.8 percent. The passenger traffic
mileage amounted to 1,300 billion people/km in 2001, up 6.0 percent.
Included were 476.7 billion people/km by railway, up 5.2 percent; 704.7
billion people/km by highway, up 5.8 percent; 9.5 billion people/km by
water, a drop of 5.6 percent; and 109.1 billion people/km by air, up 12.5
percent. The throughput of China's ports came to 2.4 billion tons, up 8.8
percent, including 600 million tons of foreign trade goods, up 13.6
percent.
Basic problems in China's communications and transport business include
deficient aggregate of transport network, uneven regional development and
small scale of communications and transport infrastructural facilities in
general. In line with the transport network density in terms of territory
and population, China has only 1,344.48 kilometers/10,000 square
kilometers and 10.43 kilometers/10,000 people, far behind economically
developed countries.
At present, China has 460 rural towns and more than 70,000 administrative
villages inaccessible to highway. China's regional structure of
communications and transport facilities is irrational. The eastern areas
are comparatively developed and the central and west regions are backward
with transport network density accounting for only one third of the
country's average level. The vast rural areas, in particular, are
provided with poor communications conditions and low-grade roads thus
severely limiting the development of rural economy.
Although China has obtained remarkable achievements in communications
infrastructural facilities, there are obvious differences in the eastern,
central and west regions in view of the local distribution. One example
is expressways, which stretch 10,878 kilometers in the east, accounting
for 56 percent of the country's total, 5,014 kilometers in the central
part, accounting for 25.8 percent, and 3,545 kilometers in the west,
accounting for only 18.2 percent.
The overall technology level of China's communications and transport
hardware facilities is very low, and the rate of multitrack railways and
electrification is not high. The automation of high-speed passenger
transport and operational management is still in its beginning stage.
About 90 percent of its highways are under the third grade highway
standard.
The proportion of inland river navigation channels able to accommodate
ships under 300 DWT accounts for only 19.3 percent. Port loading and
unloading equipment is backward, the civil aviation management and
telecommunication navigation technology is poor and overall management
level is low.
The country's communications and transport software development is also
behind the time. At present, foreign cargo transport service has hooked
up the whole process of modern logistics. However, the lack of transport
information, transfer connection of transport, passenger and cargo agency
mechanism and overall development of service employees has kept China to
stay at a position of offering simple transport services in cargo
shipping.
The process of transport marketization is slow. On the one hand, the
situation of stagnant reform of communications and transport system,
barriers between different regions and between different departments and
failure to separate the function of government from those of enterprises
still exist and affected the development of a complete overall transport
system.
On the other hand, the transport sector has not yet formed a strong
production scale and carried out network operation. The current backward
telecommunication and management of transport enterprises means have
resulted in low efficiency. Some transport services are still monopolized
by large and medium-sized transport enterprises. The overlap of market
functions by different transport means and unreasonable labor
distribution has hampered different types of transport enterprises to
perform their own advantages. The department management system by
different means of transportation has affected the coordinate development
of communication and transport business.
The development of communications and transport laws and regulations also
needs more efforts. China has not yet formed a legal system for
communications and is short of some important laws and regulations. The
published transport laws and regulations has not been brought into full
implementation and are not in line with those from economically developed
countries and international conventions.
[Source: Ministry of Communications]
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