Distinguished guests, ladies and gentlemen,

It is my great honor to attend this year's WTTC Global Summit. Taking this opportunity, I would like to give you an overview of the contribution of China's tourism sector to the economy and the future development trend of the sector.

Over the past few years, along with China's economic growth, structural adjustment and further opening-up, China's tourism industry has been expanding. China's domestic tourist visits increased from 2.64 billion in 2011 to 4.44 billion in 2016, representing an average compound annual growth rate of about 11%. Domestic tourism revenue increased from 1.9 trillion yuan in 2011 to 3.9 trillion yuan in 2016, with an average compound annual growth rate of about 15.3%. The number of inbound tourists to China has maintained steady growth, up from 135 million in 2011 to 138 million in 2016. Inbound tourism revenue has grown from US$48.46 billion in 2011 to US$120 billion in 2016, with an average compound annual growth rate as high as 20%. The number of outbound tourists from China has grown from 70 million in 2011 to 122 million in 2016, representing an average compound annual growth rate of about 11.8%. China's tourism revenue totaled 4.69 trillion yuan in 2016, up 13.6% year-on-year. China has been the world's largest outbound tourist source market for many consecutive years and China is gaining relevance as an inbound tourism destination. According to the Travel and Tourism Competitiveness Report published by the World Economic Forum (WEF), China has risen to the 15th place in terms of global tourism competitiveness in 2016, up from the 47th place in 2009.

The flourishing tourism industry, including domestic, outbound and inbound tourism, has promoting profound and positive impact on China's economic growth. China's domestic tourism revenue as percentage of GDP has grown from 3.9% in 2011 to 5.3% in 2016; domestic tourism revenue as percentage of the added value of the tertiary industry has increased from 8.9% in 2011 to 10.3% in 2016. Thanks to its long industrial chain and high degree of integration with other industries, tourism has driven growth of social investment and related industries. For example, the tourism sector has contributed over 90% and 80% of the growth in hotel and civil aviation plus passenger railway industries respectively. The development of the tourism sector has also promoted the flow of people and information, and thereby facilitating the flow of economic factors, and leading to more business opportunities for the growth of China and the world at large. The tourism sector is becoming a strategic pillar of China's economy.

First, the steady growth of China's economy will support the growth in per capita disposable income and consumer spending. In 2016, China's GDP grew by 6.7%, and GDP per capita grew by 6.1%. According to a study on tourism growth pattern by the World Tourism Organization (WTO), people usually travel for sightseeing when per capita GDP is between USD 1,000 to 3,000, for leisure when it is between USD 3,000 to 5,000, and for holiday when it is over USD 5,000. This pattern has been proven by the rapid growth of China's tourism industry in the past years. According to the 13th Five-Year Plan, China aims to reach GDP per capita of more than US$10,000 by 2020. In the future, China's per capita disposable income and consumer spending growth will further boost the steady and rapid growth of tourism.

In 2016, the added value of China's tertiary industry accounted for 51.6% of GDP, up by 1.4 percentage points from the previous year; the contribution of final consumption to economic growth was 64.6%, 4.9 percentage points higher than that of the previous year; the Engel's coefficient for Chinese residents was 30.1%, down by 0.5 percentage points from the previous year and close to the 20%-30% standard for a wealthy life set by the United Nations. With continuous growth of the tertiary industry and consumption as proportion of GDP and the gradual decline in the Engel's coefficient, economic restructuring will continue to promote the development of the tourism industry.

Third, China has abundant tourism resources and has been constantly improving tourism infrastructure. China is known for its vast territory, abundant resources, distinct seasons and long history. It also features rich natural landscape, cultural sites, and historical relics. China is home to a large number of World Heritage sites. By 2016, 50 natural and cultural heritage sites in China have been included in the World Heritage List. In recent years, with the rise of leisure, holiday, experience and education centered travel, quality bed & breakfast, study tours, theme parks have become new highlights. By the end of 2016, China's railway lines in operation reached 124,000 km, including more than 22,000 km high-speed railway. In the future, with improved capacity of tourism infrastructure such as travel agencies, restaurants, railways, highways, aviation and cruises, step-by-step development of tourism resources and continuous improvement of supporting facilities, consumers will have better travel experience, and the growth potential of tourism will be further stimulated. 

Fourth, travel has become an important way for the general public to learn and communicate. Travel expands horizons and promotes exchanges. China has an old saying that one should read ten thousand books and travel ten thousand miles. Although the Internet makes information and knowledge easily available, it cannot replace the experience of travel. Tourism allows the world to know China better and China to gain a global perspective. People's need for first-hand, valuable information will bring new opportunity for the tourism industry.

Driven by the One Belt, One Road initiative and tourism policies, and with better purchasing power, changing consumption structure and improving tourism infrastructure and further development of tourism resources, China's tourism industry will continue to show its great potential for growth. According to the targets set forth in China's 13th Five-Year Plan for the Development of the Tourism Industry, by 2020, the tourism market will feature 6.7 billion visits, 2 trillion yuan tourism investment, 7 trillion yuan revenue, and more than 12% tourism contribution to China's economy. I believe that China's tourism industry will make greater contribution to the development of the global tourism.

Thank you all.