Following Nevada's lead which opened a tourist office in China a year ago, the City of Angels opened the first American tourism office within the Great Wall. Recognizing that China is a burgeoning country of potential visitors to the U.S., Los Angeles becomes the first U.S. city to welcome the new market arrivals by opening a tourist office in Beijing.

LA INC. The Los Angeles Convention and Visitors Bureau recognizes the importance of the emerging Chinese visitor market and worked over the last year to establish its overseas bureau. Spearheading a Los Angeles delegation trade mission to Asia, L.A. Mayor Antonio Villaraigosa unveiled the site. He said, “This is a historic moment and we are excited that the China National Tourism Administration has granted Los Angeles the opportunity to open the first city-level tourism promotion office in China. This marks the beginning of tourism and economic advances for both partners on both sides of the Pacific.”

With a population of 1.3 billion people, of which 176 million (to grow by 50 million in the next three years) have enough resources to travel internationally, China currently is the fastest growing market for Los Angeles. “Opening the office in China will help expand the global reach of LA INC.,” said Mark Liberman, CEO and president of LA INC. The Los Angeles Convention and Visitors Bureau.

He projects a surge upwards of 12 percent this year through 2007 until 2010, based on average growth achieved in 2005 when 86,000 Chinese visited LA - reflecting a spike over 2004.

The Los Angeles Convention and Visitors Bureau celebrates the opening of the first city-level tourism office in China; (pictured from left to right) Los Angeles Mayor, Antonio Villaraigosa, and President and CEO of LA INC., Mark Liberman.

The World Travel and Tourism Council reported China’s hottest outbound tourism market is projected to grow to 100 million international travelers by 2020. As China’s GDP grows by 9.9 percent annually, with an economy surging to USD three trillion, the country expects to quadruple its GDP in 20 years, averaging 7.3 percent annual growth. Numbers reflect positive trends of a population of 250M upper-middle class with an increasing disposable income.

Analysts predict inbound travel from China to the U.S. will expand by 46 percent between 2005 and 2008. As home to the second largest Chinese-American community in the United States, Los Angeles can expect to receive a significant number of visiting friends and relatives. Los Angeles is the only city in America servicing all three Chinese national carriers - Air China, China Southern Airlines and China Eastern Airlines. Los Angeles International Airport is also the only U.S. airport providing for 19 weekly nonstop flights from Beijing, Shanghai and Guangzhou to LA. A close working relationship is a natural step for both communities to form formidable ties now that LA INC. has a presence in Beijing. Air alliances give LA firm footing at the hubs in Beijing and Shanghai, where 15 million 18 million people reside respectively – a market size that can boost LA’s economy. “Both hubs are very important to us, so we pursued a license to operate as the first city in the world to have the office,” said Liberman.

With major partners at the CNTA and the U.S. Embassy in Beijing, LA INC. expects numbers to continue to expand, justifying opening a satellite branch in Shanghai in the near future.

Additionally, travel from China is expected to surge when the United States obtains Approved Destination Status from the Chinese government. Such approval means the U.S. will be eligible to host group leisure travel from China. LA INC. recognizes the ADS challenge, as well as the VFR issue with Chinese travelers. “This is at the top of our priority list we would like to see changed in the travel restrictions between the US and China. Obviously, the ADS is a federal issue we are not going to make a decision on. Our opinion is that we hope the governments will come to terms so that we can see increased group leisure once ADS in place. Our numbers will climb. Hopefully, this will increase the number of visas processed,” said Liberman who added LA INC. works shoulder-to-shoulder with the U.S. Embassy. The embassy recently initiated the Tour Track program, engaging seven of the largest Chinese travel agents to enjoy ease in a three-minute visa processing for group travel of six or more people. This comes on the sidelines of Department of Commerce Secretary Carlos Gutierrez’ meeting with tourism officials who discussed possibilities of increased US travel by the Chinese.

“All this is a forward step for us. It is appropriate that LA becomes the first U.S. city to open a tourism office in China because we are a destination that is ahead of the curve. We are committed to showcasing everything our great city has to offer visitors from China,” said Liberman.

While the average Chinese travelers in the past were mainly businessmen or students, today tourists crave zing, dynamism and ‘bling’. China’s outbound travelers seek boutique stores, authentic tours, higher living economy and package tours. Whirlwind sightseeing and cheap accommodation are now a thing of the past, according to Jennifer Lee, Commercial Representative in-charge of tourism at the US Embassy in Beijing.

“The Chinese today are young (between 25-40 years of age) and career-driven. They are called the billion boomer generation with incomes comparable with the U.S. There has been a 40 percent shift from business to leisure travel with Chinese first-time travelers. Business tops the agenda at 49 percent, followed by VFR at 48 percent, vacation then holiday,” said Lee. Bigger budgets have afforded the Chinese to think about travel. About 100 million Chinese are projected to travel by 2020. In 2005, there was a 43 percent increase in Chinese outbound tourists to 31 million because of income. The World Tourism Organization reported that in spending, Chinese travelers are the second highest in the world today – twice the global average. Last year, it ranked number seven in travel and tourism. In 2015, China is expected to rise to number two in travel and tourism demand, just behind the U.S.

“In LA, they find good weather, shopping, good restaurants and good sightseeing. What they are looking for is what LA has to offer!” said Liberman.