On November 17th-19th, the 2020 International Mountain Tourism Alliance Annual Conference opened in Guiyang. The Conference is concentrated on the theme of "The Path of Mountain Tourism Development in the Post-COVID World". During the annual conference, the participants focused on this major topic, and discuss depth in how to promote the revitalization and quality of mountain tourism after the pandemic, and provide thoughts guidance and practice support for global mountain tourism management and promotion of global tourism industry.

This Annual Conference is hosted by the International Mountain Tourism Alliance. UNWTO, WTTC, PATA, GTEF, WTA, WTCF, ASEAN-China Centre, WCCO and other well-know international organizations and associations provided powerful support.

Good morning!

Today I want to talk about “ Changes in Tourist Demands and Solutions from Supply Side after COVID-19”. As many guests mentioned in their speeches, the pandemic has had a huge impact on global tourism. However, as far as China is concerned, it has made great efforts and made great achievements in the prevention and control of the pandemic. So I'm going to extend today to talk about the logic and practice of “internal cycle”internal cycle in China's tourism industry, that is, how to realize a new structure through internal cycle.

1. The Cycle of “dilemma” and “opportunity” of cultural tourism Industry 

(1)  Dilemma and cause of international “external cycle” of the cultural tourism industry 

First of all, there is a cycle. For about 30 years, the proportion of inbound tourists has been even greater. Through foreign exchange earning, that is, policy driven, a lot of direct experience has been accumulated and domestic construction has been developed. This cycle has been formed through publicity and promotion in the international market. For example, in 2009, inbound tourists were about 126,475,900 person-times and outbound tourists were about 47,656,300 person-times.

The second is the cycle of outbound tourism, which has been driven by China's consumption through shopping in the past decade. The outbound tourism of Chinese tourists has also shown the potential and speed of China's economic development. Under the comprehensive influence of various elements (such as consumption transmission, easy exchange, long holiday stimulation, information progress and transportation improvement), the number of outbound tourists has exceeded the number of inbound tourists, forming this cycle. For example, in 2019, the inbound tourists in China were about 145.31 million person-times, and the outbound tourists were about 154.63 million. For example, in 2019, the inbound tourists in China were about 145.31 million person-times, and the outbound tourists were about 154.63 million. 

Both of these “cycles” are unidirectional (unbalanced) and occur sequentially (not convect simultaneously); In the two “cycles”, the tourism industry is driven by external forces (policy driving force, consumption spillover force), while the cycles lack internal forces (such as service attraction, cultural exchange with foreign countries or monetary pressure release); In the two “cycles”, the tourism industry is trapped in the international economic division of labor system, and the cycle of the tourism industry itself is not obvious (first as an active tool / then as a passive channel). Some might say isn't it nice to be involved in a big domestic economic cycle? But the problem is that international and domestic tourists are not benefiting at the same time, and the local tourism driving force is not working.

(2) Dilemma and cause of domestic “internal cycle” of the cultural tourism industry 

The travel of domestic tourists can increase the supply of business opportunities (investment driving force), thus bringing investment returns. However, the return on investment is generally low and the comprehensive benefits are not good. That, in turn, will affect the travel of domestic tourists, with more jobs leading to more discretionary income and greater motivation to travel. 

The underlying reasons for this dilemma are: Policies are not precise and appear to be too market-oriented, fragmented and commercialized; The model types are not rich; Products are not innovative, there is occupation and plagiarism; The boundaries between what can be developed, what is an “asset”, what needs to be supported and what needs to be rewarded are unclear; Demand is not high-end, overseas shopping, vacation and so on take away high-end consumers. 

(3) “Double cycle” change and “internal cycle” opportunity (new change, new opportunity and new logic) of cultural tourism industry 

China wants to contribute to the world. In the long run, it will provide the world with new products and the possibility of growth, through contributing to the world through China's internal cycle and helping China make up the lesson of endogenous driving force for tourism development. 

What will it bring to the world? It will bring an increase in inbound tourism, the emergence of new products, the rise of international appeal, and the prosperity of industry and the enhancement endogenous driving force. 

2. Key elements and business opportunities of the internal cycle of the cultural tourism industry 

One problem with China's domestic cycle is that investment returns are not high, so the sustainability of investment is a concern. Investment returns are low due to policy, product, boundary clarity and demand spillover.

(1) Key elements 

Promoting effect of policy evolution; Business model progress; Enhanced innovation ability; Deepened cultural and tourism integration. 

(2) Area opportunities (Areas for new products) 

The first is the fancy destination that high-end consumption might seek, the second is the large integrated leisure and vacation destination, and the third is the area where talents gather. 

(3) Market opportunities 

Including the traditional market opportunities namely opportunities on the demand side, the supply side, the intermediary side, and the smart side; New investment opportunities and some extension opportunities from Internet platforms. 

3. Important status and development prospect of mountain tourism in the “internal cycle” 

(1) Inevitability of status promotion

Many people need to find a new destination when they change their destination of traveling abroad to China. There are many good mountains in China, which will become good destinations in the future. The second is that seaside vacation in China is not as good as mountain vacation in the long run. The third is the logic of convenience, that is, the universality and richness of mountains and the meaning of mountains themselves will call people to travel. 

(2)Difficulties and pain points of exploitation and utilization 

Mountains are different tourist destinations, with infinite scenery, excellent ecology, rich cultural heritage, universality, richness and symbolism. However, there are some difficulties and pain points in the exploitation of mountain tourism at present, such as the restriction policy is “lack of resilience”, the land index is “lack of leeway”, the mountain residents are “lack of boundaries”, the format construction is “lack of innovation”, and the return on investment is “lack of rhythm”. 

(3) Broader prospects for development 

Therefore, to promote the development of mountain tourism, it is necessary to improve traffic facilities, gradually change vacation policies, evolve social cognition, and attract tourists with the progress of new products. We should do a good job in developing mountain tourism and help promote the sound development of the “internal cycle” of the cultural tourism industry. 

4. Build the service provider of the whole industrial chain of internal cycle - practice of OCT 

(1) Conditions for service providers of the whole cultural tourism industrial chain of internal cycle

They should have the traditional ability accumulation, which can be reflected in the product, talent, consciousness and capital; have the brand driving effect; have the spatial layout foundation; have the possibility of building new capabilities; have feelings for cause and leading sense of responsibility. 

(2) Historical accumulation 

I won't go into details about the historical accumulation of OCT. The slogan of OCT has always been “creator of quality life”. Our theme park, OCT Happy Valley, came in third, overtaking OCT Cinema. In the future, OCT will also build abilities of service providers in the whole industrial chain, such as abilities of product innovation, customer output, destination marketing and destination investment. 

To sum up, in response to the above mentioned process of China's further contribution to the international community, as an enterprise, we hope to make our own contribution to the recovery after the COVID-19 pandemic together with other tourism enterprises around the world. Thank you!