CCTV.com - CNTV English - CCTV News

RMB reform affects tourism

06-24-2010 13:48 BJT Special Report: China to Reform RMB Exchange Rate Regime |

Watch Video

Play Video

China's announcement to further reform its exchange rate mechanism will impact on many economic sectors. Let's take a look at how the new policy will affect the country's tourism industry.

Dai Bin, Deputy Director of China Tourism Academy said "According to our analysis, when the RMB exchange rate rises 1 percent to the U.S. dollar, the number of tourists from the U.S. to China will decrease by 0.15 percent. On the other hand, the number of Chinese travelers to the U.S. will increase by 0.1 percent."

Dai says around 550 thousand Chinese will visit the U.S. this year, but fewer Americans will come to China. The hotel sector will be directly hit. Currently the gross profit for China's hotels is around 20 percent, while the net profit is less than 5 percent. If the yuan continues to appreciate by 5 percent, hotels may fall at a loss. But business for travel agencies is picking up, with more people signing up for overseas trips.

One tourist said "As the Reminbi appreciates, we will save lots of money when buying overseas, so my family has decided to visit U.S."

The travel agency says it's welcomed more customers signing up for U.S. tours as the Yuan appreciates. The price for a trip to the U.S. has fallen to around 20 thousand yuan, down by nearly 30 percent year on year. Some agencies have already begun to receive reservations for October.

Editor:Xiong Qu |Source: CCTV.com

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program