"Everybody wants rich Chinese Tourist"

samedi 19 novembre 2016

The Trump effect on Chinese outbound tourists to USA

President-elect Donald Trump and his future Chinese counterpart Xi Jinping made a good appeal yesterday and established a "clear sense of mutual respect," but if Donald Trump's campaign promises about China are an indication, Can the year 2016 of the United States and China end the improvement of tourism between the two countries? Jing Travel breaks down some of the possible implications of Trump's looming presidency for Chinese travel to the US, as well as the US tourism and hospitality industry in general.

Exchange Policy

President-elect Trump stressed that he would impose a tariff of 45 percent on all imports from China, unless China is taking subsidies for many of its key industries. Many political commentators fear that Trump's trade policy towards China will result in a trade war, which could jeopardize the strong growth of Chinese tourism in the United States. While the US has a growing trade deficit in China, $ 365.7 billion in 2015, tourism is one of the areas where the US has a large surplus. Chinese tourists overseas far exceed foreign tourists in China, and this expense is a key reason behind China's trade deficit in the services sector.

A global trade war between China and the United States puts US tourism exports at risk because it is a powerful weapon for China in a potential trade conflict. While tariffs are an area where China has perhaps the most to lose, tourism represents exactly the opposite situation. As the case of Taiwan proves, China is no stranger to the limitation of tourism to achieve political objectives.

Visa Policy

It is easier than ever for the Chinese to acquire tourist visas for the United States, and the 10-year visa that was introduced in 2014 has become an important milestone in attracting Chinese (and rich) visitors to the United States. However, Donald Trump's anti-immigration campaign platform raises serious doubts about the future of this visa program, which is widely regarded as an important driver of tourism between the two countries. The US Department of State has argued that the 10-year visa agreement will benefit both the development and investment of US and Chinese companies. The promise of President-elect Trump to protect US jobs and prevent China from stealing trade secrets undoubtedly part of the investment of visa benefits, highlighting the uncertain future of this visa arrangement. Another objective of the criticism Trump was what he called "babies anchor", or less offensively "maternity tourism," the practice of giving birth to children on the floor of the United States by visiting tourist visas To grant citizenship to American children. It is believed that this practice is common among rich Chinese, and a repression of this practice could lead to collateral damage to general visa policies Ironically, Mr. Trump personally benefited from Chinese tourism and Chinese immigration as a businessman. Trump's hotels welcomes many Chinese tourists, and its Trump Tower was funded by wealthy Chinese individuals who used the investment to apply for EB-5 visas that facilitate immigration in exchange for job-creating investment in the United States. United.

No more Chinese Investment ?

The last few years have seen many large Chinese companies in the tourism sector, such as the acquisition by HNA Group of Carlson Hotels and its 25% investment in Hilton, the attempt to acquire Starwood and its successful acquisition The Waldorf Astoria, as well as numerous small acquisitions that received fewer media spotlights. Many United States national security officials and experts, and Donald Trump in particular, are wary of Chinese acquisitions of US companies, and many officials have called for a more rigorous review of these investments. US tourism stakeholders, who are only the beneficiaries of China's outward investment, would have much to lose if the Trump administration reduced Chinese investments in order to promote its protectionist agenda. Trump himself however pointed out that he personally benefited from Chinese real estate buyers and investors. more information here