Tourism and International Relations of China

1. China’s interest in tourism has increased in consonance with its economic growth. Higher income, urge to gain overseas experience, friendly visa policy and improved connectivity have led to growth in outbound tourism with ‘One Belt One Road’ initiative providing an additional stimulus in recent times. ‘Action Plan on the OBOR’ entails creating competitive international tourist routes and products with Silk Road features. China’s policy initiatives and actions on tourism suggest that China’s goal behind the promotion of tourism is much more than promoting people to people ties. The paper looks at China’s approach to tourism, destinations for Chinese tourists, and assesses utilisation of tourism by China as an instrument of state policy.

China’s Approach to Tourism

2. China promotes tourism by encouraging its enterprises to go global and promote cultural exchange. Premier Li Keqiang in the ‘First World Conference on Tourism Development’ held in May 2016 stated China’s plan to launch 50 international tourism cooperation projects, assigning experts to consult on tourism planning and providing training for 1,500 foreigners in China.ⁱ At the same time, China also promotes the visit of Chinese tourists to friendly countries. Besides, China holds control over travel agencies as the private travel agencies get license from the government.ⁱⁱ They are not allowed to take tourists to countries that do not have approval from the government.ⁱⁱⁱThe creation of a separate ‘Ministry of Culture and Tourism’ in 2018 to enhance China’s soft power and cultural influence underlines the importance that China pays to outbound tourism.^iv

3. China has taken initiatives to promote tourism like granting ‘Approved Destination Status’ (ADS), promotion of ‘Red Tourism’, ‘World Tourism Alliance’ etc. Besides, Shanghai Cooperation Organisation and One Belt One Road initiative are also platforms for the promotion of tourism.

China’s Tourists Destinations

4. China’s top tourist destinations mainly include East Asia, Southeast Asia, and Europe. Chinese tourism has made significant contributions in countries of Southeast Asia like Thailand. Tourism in its neighbourhood is not only pocket-friendly for the Chinese but also helps China increase its influence in this region. Europe has also seen an increase in Chinese tourists as well as investments in the tourism sector such as ports, airports, and tour operators. Outbound tourism to countries in Africa and Oceania are less in comparison to the above countries.

5. Countries in India’s neigbourhood like Nepal, Myanmar, and Sri Lanka have also seen an increase in Chinese tourists. While Maldives and Nepal has seen Chinese investment in the tourism sector, Pakistan is being promoted as a tourist destination for Chinese. China’s ‘zero-dollar tourism¹’ in countries like Myanmar and Sri Lanka is perceived as threatening local employment. Development of the Lumbini Project in Nepal and the promotion of Gandhara tradition in Pakistan for tourism may increase China’s influence in the Buddhist world.

Tourism as a tool of State Policy

6. China uses ADS as a tool to confer rewards to potential destination states. It granted ADS to Fiji in return for not recognising Taiwan diplomatically.^v In yet another instance, tourism was used by China to entice the Solomon Islands which has recently established diplomatic ties with China.^viIn Switzerland, China arranged a tour group of 12,000 people after the country signed an MoU on One Belt One Road.^vii

7. China has also used tourism to extract retribution from countries like Philippines, Japan, and South Korea which are among the top tourist destinations for the Chinese. During political disputes, China informally directs its travel agencies to curtail tours in the target country.^viii These restrictions are gradually lifted once the relationship is normalised.

8. To cater to the needs of Chinese tourists, Chinese police have been sent to countries like Italy and Serbia.^ix Besides, Chinese investment has also led to suspicion behind Chinese intention in many places. An attempt by a Chinese entrepreneur, Huang Nubo to buy land in Svalbard Island of Norway for tourism raised eyebrows of Norwegian government amidst possibilities that it is to gain a foothold in the Arctic.^xCambodia is said to have granted 45,000 hectares of its real estate in Koh Kong province and 20 percent of its coastline to a private Chinese company to develop it into a tourism spot which could be used for military purpose.^xi

9. Increasing travel by Chinese tourists has led to growth in China led mobile and card payments.^xii According to China Tourism Academy, Union Pay Card has now spread to 168 countries and around 80 airports of the world support Ali Pay real-time tax refund.^xiii

10. Chinese tourists have been accused of carrying out activities other than tourism. In 2011, three Chinese tourists were arrested for illegally entering Indian territory through Nepal.^xiv

Implication

11. With Chinese tourists increasingly seeking high-end tourism while also spending more, the ability to attract/coerce countries through tourism may increase with time. Neighbouring countries like Myanmar, Maldives, and Nepal with an increased presence of Chinese tourists are more prone to actions from China. The use of Chinese payment networks may enable these countries to integrate more closely with China. China’s attempt to influence Buddhism through tourism in India’s neighbourhood may be an attempt to improve its image in the Buddhist world. It is also pertinent to note many of China’s investments in the tourism sector is strategic. Promotion of initiatives like ‘Red Tourism’ and training of tour operators helps the country in promoting the legitimacy of the Communist Party of China, spread Chinese propaganda, and enhances its soft power.