The World Conference on Tourism Cooperation and Development: 21 Potential Projects Worth RMB 15.71 Billion

The World Conference on Tourism Cooperation and Development sponsored by World Tourism Cities Federation (WTCF) kicked off at China National Convention Center on September 5th. As a highlight of the conference, the Tourism Investment and Financing Conference was held in the afternoon on the same day. During the conference, 21 potential projects worth RMB 15.71 billion were achieved. Five representative projects, including Qingdao Daze Mountain Scenic Area Project, were signed on the spot.

"Tourism will remain the most attractive sector for investment during post-pandemic era."

Chen Dong, Secretary-General of WTCF and Director-General of Beijing Municipal Bureau of Culture and Tourism, gave a speech during the Tourism Investment and Financing Conference

Chen Dong, Secretary-General of WTCF and Director-General of Beijing Municipal Bureau of Culture and Tourism, gave a speech during the Tourism Investment and Financing Conference. In his words, although the world tourism was hit hard by the pandemic, its core products, service systems and basic needs remain unchanged. "The optimistic trend of the development in the tourism sector has not been reversed in the long-run. Tourism will remain the most attractive sector for investment during the post-pandemic era."

Chen Dong stated that a favorable investment environment is the key for boosting tourism recovery, and increasing investment is a crucial act to revitalize the industry. He called on governments and tourism cities to implement more favorable and supportive policies, such as tax reductions and exemptions, government subsidies and financing guarantees, formulate specific threshold for entering the tourism market, and create better external environment in areas like tourism resources and tourism products for investors to take part.

Chen Dong proposed that under the context of the COVID-19, the priority should be to orderly restore air transportation system, maintain necessary international exchanges and flows while pandemic prevention and control are still undergoing. Tourism companies should enhance international cooperation, and jointly create a positive environment for tourists under the long-term influence of the COVID-19. Meeting the latest needs of the world tourism, tourism cities shall aim to integrate technological advances with tourism, which would help innovate tourism products and create new business modes.

Discussion regarding Reorienting Tourism Investment and Recasting the Industry to Help Rebuild Tourism for Prosperity in Post-Pandemic Era

Dr. Andrew Yan, Managing Partner of SAIF Partners, gave a keynote speech at the forum centered on "Reorienting Tourism Investment and Recasting the Industry"

The Forum of "Tourism Investment - Reorienting and Recasting the Industry"

During the forum of "Tourism Investment - Reorienting and Recasting the Industry", Dr. Andrew Yan, Managing Partner of SAIF Partners, gave a keynote speech. He shared the impacts COVID-19 has on tourism, changes of tourism investment both on the supply and demand side, as well as how tourism could benefit from technology. In his opinion, the pandemic in 2020 has not only brought new challenges to world tourism, but also made people embrace technologies. From the perspective of investment, the key words are "tourism plus", "Tourism Plus Technology" improves tourism experience, "Tourism Plus New Tools" improves operational efficiency, "Tourism Plus New Channels" improves promotion efficiency, and "Tourism Plus Big Data/ AI" empowers all aspects of tourism."

After that, H.E. Mr. Parakhat Durdyev, Ambassador of the Republic of Turkmenistan to China, Mr. Na Shuchen, Director-General of Hebei Provincial Department of Culture & Tourism, Mr. Zou Feng, Managing Partner of Tourism Capital, Mr. Zhang Hui, Chairman of Palm Investment, Mr. Eddie Chen, Managing Director and Head of China & Asia, EURAZEO conducted in-depth discussion regarding new trends and changes in the industry on both the supply and demand side, and future direction of tourism investment.

According to H.E. Mr. Parakhat Durdyev, Ambassador of the Republic of Turkmenistan to China, Turkmenistan's capital Ashgabat joined WTCF in May this year. So far, COVID-19 hasn't reached Turkmenistan. "It's not an achievement that our country hasn't had a confirmed case so far, however we have made enormous efforts to prevent it from occurring. We drastically reduce the number of arrivals from foreign countries." He said that there would be new opportunities to start increasing international exchanges as the pandemic is effectively under control.

Mr. Na Shuchen, Director-General of Hebei Provincial Department of Culture & Tourism, perceived the pandemic influences on tourism investment in three aspects. First, tourism investors are more conscious of the risk involved. They are more rational and cautious when they invest. Second, the strategy, direction and focus of investment have been adjusted. Third, business modes shall be reshaped and innovated. Facing the challenges of the COVID-19, tourism of Hebei will focus on seizing major opportunities, such as the coordinated development of the Beijing-Tianjin-Hebei region, the planning and construction of Xiong'an New Area, and the 2022 Winter Olympic Games, as well as create a new development pattern featuring dual circulation, taking the domestic market as the mainstay while letting domestic and foreign markets boost each other.

Mr. Zou Feng, Managing Partner of Tourism Capital, said that the supply and demand structure of the world tourism had been uneven before the pandemic. The demand side hadn't been met. However, excess supply occurred after the outbreak and this could help improve the quality of supply, balance out the supply and demand within the industry, as well as creating opportunities for mergers and acquisitions to take place. For future tourism investment, Mr. Zou Feng gave four suggestions. First, it is better to hold shares, invest in majority holding rather than minority holding, and wholly-own if possible. Second, investment should be put into the core areas, focus on crucial industrial chains and types of business. Third, it is better to merge useful programs at a reasonable price. If investors buy a dodgy company, they might get themselves into trouble. Fourth, investors should manage their investment carefully and rationally after purchase.

Mr. Zhang Hui, Chairman of Palm Investment, is experienced in investing tourist attractions towns with Chinese characteristics. He said that people are still craving for travelling despite the hard hit pandemic had on tourism. Scenic spots and tourist destinations, including characteristic towns, shall make full use of the window period brought by COVID-19 to improve themselves while awaiting tourism recovery.

Mr. Eddie Chen, Managing Director and Head of China & Asia, EURAZEO, stated that professionals in the tourism sector should think out of the box and find new product plans horizontally along the industrial chain. He suggested that tourism companies should attach great importance to structuralizing their capitals. With complete structures, companies would then be able to get financing quickly through entering and exiting the capital market.

Tourism Investment Workshop: 21 Potential Projects Worth RMB 15.71 Billion

Signing Ceremony

The twenty-two participating projects at the Tourism Investment Workshop have all passed through the screening of the fund companies before the conference. Twenty-six fund managers from nineteen fund companies held on-site talks with the representatives of these projects.

It was reported that the WTCF has had 21 signed projects worth RMB 15.71 billion through soliciting in advance and conducting negotiation with relevant parties at an earlier stage. The signing ceremony was held on September 5th. Five representative projects were signed on the spot, including projects of Qingdao Daze Mountain Scenic Area, Zhejiang Lanxi International Yacht Town, International Music City, Safety Culture Experience Center Complex and Baihewan International Leisure Town Phase I.