Tuesday, November 18, 2014

Business lauds pact with China for bilateral extensions of visas

China passportIn the race to attract the swiftly swelling numbers of Chinese outbound travelers, the U.S. produced another big obtain last week when President Obama announced a deal with China to extend the validity of quick-term tourist and enterprise visas for travelers in each directions from 1 to 10 years.

"This is actually large," stated Chris Thompson, president and CEO of Brand USA, the public-private entity that promotes the U.S. as an international location. "Right now, China is the biggest outbound international travel industry in the globe, and travel to the United States is nevertheless quite aspirational to many Chinese. When they talk about where they want to go, they all say they want to go to the United States, but up till now only 2% are coming here."

The difficulty in obtaining a visa for travel to the U.S. from China is second only to budgetary restraints among factors that impede aspiring guests, according to Brand USA, which final week unveiled a host of new and updated initiatives to better market the U.S. within China. Among them was a new digital platform, GoUSA.cn, on which destination advertising organizations can build their own micro internet sites.

"We're stepping up our commitment to that marketplace to take advantage of the momentum from the announcement," Thompson said.

The new policy for brief-term tourist and organization visas, which is applicable for both U.S. travelers going to China and Chinese travelers coming to the U.S., represents the longest visa validity achievable under U.S. law.

The U.S. and Chinese governments also improved the validity of student and exchange visas from one particular to five years. All the new visa policies went into effect Nov. 12.

Even though the policies do not adjust the procedure for acquiring an initial visa, the travel sector is optimistic that the 10-year effectiveness of the tourist and enterprise visas will encourage repeat travel, as properly as much better motivate potential very first-time travelers.

"With the aid of this change, up to 7.three million Chinese visitors — a lot more than any other country except Canada and Mexico — are projected to pay a visit to the United States in 2021," U.S. Secretary of Commerce Penny Pritzker said in a statement about the agreement. "That is four times as several travelers supporting 4 instances as several American jobs as compared to final year," she added.

In 2013, 1.8 million Chinese travelers visited the U.S., according to the U.S. government.

The anticipated 7.three million Chinese visitors represent huge spending potential. According to the U.S. Travel Association, Chinese visitors commit an typical of $ 7,200 on a trip to the U.S., far outsizing the $ 4,500 per trip spent on typical by U.S. overseas guests.

Paving the road from China

The 10-year visa policy is the latest in a series of moves to ease travel in between the U.S. and China.

Chris ThompsonIn 2012, the State Division moved to improve the number of visas that were becoming processed in China and to decrease visa wait instances.

Nevertheless, challenges remain, like access to U.S. consulates in China. There are currently only five consulates in China — the U.S. Embassy in Beijing, and Consulates Common in Chengdu, Guangzhou, Shanghai and Shenyang — which tends to make visa processing a challenge.

But the travel business is hopeful that each step toward easing and enhancing the visa process will result in more Chinese guests to the U.S.

"There's always going to be far more that can be completed," said Evan Saunders, CEO of AttractChina, which functions with U.S. organizations to aid them draw in independent Chinese travelers.

"But so far, the improve in direct flights, the improve in visa centers, the now 10-year visas — it is all moving in a fantastic path."

Whilst there is no doubt that the numbers of Chinese guests are soaring, Saunders said the U.S. travel market needs to be far better prepared for them. He advises businesses that are looking to court Chinese travelers to make them really feel more comfy with out necessarily going overboard to cater to them.

"They are coming to America to experience America, not China in America," Saunders stated, adding that obtaining some Chinese signage and accepting Chinese credit cards are amongst the types of subtle methods organizations can take to make Chinese travelers feel more welcomed.

For the short term, however, the industry anticipates that the 10-year visa system will have the most significant effect on repeat travelers from China, those who have greater spending energy and will return to the U.S. to see a lot more of the nation.

That means higher opportunities for U.S. destinations and travel businesses beyond just the major cities like New York, Los Angeles and San Francisco and destinations such as Orlando.

The National Tour Association "hears from its tour firms that Chinese travelers want to encounter far more of the United States," mentioned Catherine Prather, the organization's senior vice president. Her group oversees the China Inbound System, facilitating inbound leisure visitors from China through a list of authorized U.S. ground operators.

"By extending the visa validity and creating it less difficult to return to the U.S., this can advantage smaller cities and show guests the incredible diversity we have throughout our nation."

Competing for Chinese travelers

The inbound U.S. travel industry isn't the only entity eyeing outbound Chinese travelers, whose numbers are anticipated to surpass 100 million this year.

Other destinations are following comparable paths to easing and facilitating travel from China.

Canada has currently had a 10-year visa system in location with China (as nicely as Brazil, India and Mexico) given that 2011.

And just final month, the European tourism sector place stress on European governments about the lack of progress in implementing improved visa application guidelines proposed by the European Commission earlier this year.

In a joint statement with other European travel industry representatives, Lars Thykier, president of the European Travel Agents' and Tour Operators' Association, mentioned, "Europe can’t afford 'business as usual' while other destinations have acknowledged the advantages of visa facilitations and creating visa applications easier and more affordable."

Regardless of these and other efforts by competing destinations to woo Chinese travelers, the U.S. industry remains confident in its position as a hugely preferred travel destination.

Brand USA's Thompson mentioned, "The United States is the destination that they want to go to. That, in the finish, is going to be the point that drives the results."
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Photo of China passport courtesy of Shutterstock.com.


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