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Fan Yunjun, Deputy Secretary of the Party Committee and General Manager of China Tourism Group Corporation Limited: Cultivating world-class enterprises and promoting the construction of a strong tourism country

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2024-12-21

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Editor-in-Chief | Yang Ming

Editor | Liu Kaiye

Source | China Tourism Academy

The 2024 China Tourism Group Development Forum, jointly hosted by the China Tourism Academy and the China Tourism Association, was recently held. At the forum, Fan Yunjun, Deputy Secretary of the Party Committee and General Manager of China Tourism Group Co., Ltd., General Manager delivered a keynote speech entitled "Cultivating World-Class Enterprises and Promoting the Construction of a Strong Tourism Country." The full text is shared below:

Honorable Minister Sun Yeli, President Dai Bin, Mr. Chen Miaolin, distinguished leaders, guests, and industry colleagues:

Good morning! I am very pleased to be invited to participate in the "2024 China Tourism Group Development Forum." First, please allow me to express my warm congratulations on the holding of the forum on behalf of China Tourism Group! I would also like to express my sincere gratitude to the Ministry of Culture and Tourism, the leaders and guests present, and all sectors of society for their long-term care and support for China Tourism Group!

2024 is an exciting and encouraging year for Chinese tourism professionals; I also joined the tourism industry this year. On May 17, the National Tourism Development Conference was held, and General Secretary Xi Jinping made important instructions on tourism work, for the first time proposing the strategic goal of accelerating the construction of a strong tourism country. This is of milestone significance for the development of China's tourism industry and is a contemporary issue that we must seriously consider and address. Minister Sun Yeli just now put forward the requirements for the group, brand, and industry development of tourism enterprises. Based on this topic, I would like to share China Tourism Group's views from three aspects.

Innovation-driven, Deeper Strategic Value

Over the more than 40 years of reform and opening up, the tourism industry has undergone a fundamental transformation in its strategic value, from initially focusing on receiving inbound tourists and playing a role in "foreign exchange earnings" to serving people's yearning for a better life today, becoming a new strategic pillar industry and a people's livelihood industry and happiness industry with significant contemporary characteristics. Under the new development pattern of "dual circulation," tourism enterprises must not only be promoters of mass consumption but also drivers of innovative development and practitioners of cultural confidence.

As a central state-owned enterprise, China Tourism Group has always adhered to the original mission of "serving the country through tourism and serving the people," fully integrating its development into the national strategy and striving to play a strategic role. In recent years, we have made new breakthroughs in regional development, focusing on tourism-rich areas in central and western China, opening a number of new projects such as the Lugu Lake Lanyue Hotel and the Ningxia Shapotou Diamond Hotel, and operating a new batch of influential tourist destinations such as the Dali Erhai Corridor. Through the supply of high-quality products, we stimulate consumption potential and create job opportunities for central and western regions, contributing to common prosperity. In terms of innovation, we have made new attempts, actively promoting the application of new technologies such as artificial intelligence in tourism scenarios, exploring and developing AI-customized tours, Planet Space, and other experiential scenarios for the user end, and creating the Xingtu AIGC creation platform for the enterprise end, using scenario innovation to promote the vitality of technological achievements transformation. In tourism diplomacy, we have made new achievements, participating in the organization of high-level China-US tourism dialogues, and undertaking activities such as the 2024 "Gulinge Yuan" China-US Youth Exchange Week and the US Youth "Youth Together" exchange group. General Secretary Xi Jinping sent congratulatory messages and greetings to the two events, encouraging us to showcase China's image and enhance cultural exchanges through tourism businesses.

Next year is the closing year of the "14th Five-Year Plan" and the year for planning and laying out the "15th Five-Year Plan." We will continue to adhere to the principle of upholding the right path while embracing innovation, promoting innovation and transformation of development paradigms and business models, actively exploring the "second curve" of growth, and truly embarking on the path of intelligent, platform-based, and ecological development. We will extend from serving user needs to serving partners. As the saying goes, "A single flower does not make spring, but a hundred flowers in full bloom make spring." In this era of symbiosis and win-win cooperation, we are willing to be customer-centric, empower with technology, and promote cooperation through ecosystems, working with our partners to play a role in building a strong tourism country.

Seizing Opportunities, Greater Economic Value Creation

The upward development trend of the tourism industry is obvious to all. Domestic tourism continues to maintain steady growth on the basis of a strong rebound last year. The tourism boom during major holidays such as the Spring Festival, May Day, and National Day remains unabated, with key indicators repeatedly hitting record highs, driving the service economy to maintain a high growth rate after the epidemic, fully demonstrating the strong resilience of the tourism industry and its contribution to economic growth.

With the increase in travel frequency, tourism consumption also shows new trends and changes. Customer groups are becoming increasingly segmented, consumers are pursuing more personalized and high-quality experiences, and they pay more attention to cultural resonance, experiential attributes, and emotional value. Data shows that consumer spending on experiential products in 2023 increased by 65% compared to 2019, while spending on physical products increased by only 12% during the same period. The recently popular "Guzi economy" is a reflection of the significant changes in the consumption habits and psychology of young customer groups.

Better meeting and creating consumer demand is the primary task for tourism enterprises to leverage economic value. The Group actively embraces change and promotes the improvement of value creation capabilities. First, we re-identify customers. Traditional enterprises often overlook the assessment of changes in customer needs, resulting in untimely product development and unsatisfactory market response. We also recognize this point and are working to analyze user profiles, providing customers with personalized products and value propositions through effective network, digital, and intelligent operations, transforming from single sales to delivering comprehensive services and creating user experiences to achieve value-added services. Second, we restructure our business. We are actively developing the cultural and creative field. With the addition of companies such as Beijing Huajiang Culture, new IPs and platforms for "cultural and creative + tourism" are taking shape. Not long ago, we launched the "She Dundun" series of new products. The "She Dundun," incorporating Peking Opera elements, has attracted much attention from the market as soon as it appeared, and the topic "Bing Dundun transforms into She Dundun" once topped the hot search list. Third, we reshape our capabilities. New markets, new customers, and new businesses all place higher demands on the capabilities of enterprises. We enhance our innovative and creative capabilities through the development of themed itineraries, planning of experiential content, and creation of festive activities; we build detailed service capabilities through the continuous promotion of "honest management and high-quality service"; and we break through traditional models and build collaborative innovation capabilities through the deep integration of business digitalization and digital business.

Next, we will continue to work on product excellence, listen to the voices of our customers, understand their needs, promote precise matching of supply and demand, and strive to co-create first-class, competitive, and memorable products and services with our customers, laying a solid foundation for accelerating the cultivation of world-class tourism enterprises.

Culture and Tourism Integration, Higher-Level Functional Value

The Manila Declaration on World Tourism, a programmatic document issued by the World Tourism Organization in 1980, points out that no matter how real and important the economic benefits of tourism are, they cannot and should not be the only criterion for countries to make decisions to encourage the development of tourism. Especially in an environment of increasing global uncertainty and rising risks such as deglobalization and geopolitical conflicts, the importance of tourism in offsetting adverse impacts, promoting people-to-people connectivity, and promoting harmonious coexistence is even more prominent. China attaches great importance to international tourism development. The constantly expanding visa-free "circle of friends" attracts more and more foreign tourists to experience a vivid and real China and feel the charm of Chinese culture.

While developing traditional inbound and outbound tourism businesses, we leverage the driving role of the integration of culture and tourism, striving to excavate the cultural attributes of the tourism industry chain to promote cultural exchange and mutual learning. We are exploring the creation of new integrated tourism and transportation industries. The "Xingguang Lanmei" train, China's first cross-border tourism train, was launched from Kunming Railway Station, crossing the Tropic of Cancer, passing through Luang Prabang, a city with dual World Heritage status for nature and culture, and arriving in Vientiane, Laos. Tourists can appreciate the beautiful mountains and rivers, diverse cultures, and ethnic customs along the way. This route has also effectively promoted cultural and tourism exchanges between China and Laos and the interaction between the Chinese and Lao people. We leverage the advantages of tourism retail channels to promote national trends overseas. We successfully held the "Tide Rising, Setting Sail" national trend sports brand launch event at Haikou International Duty Free City, creating online and offline national trend sports zones, pop-up stores, and sportswear shows to enhance the influence of national brands. Several national trend brand products have completed trial orders through duty-free channels in Hong Kong, Macao, some Southeast Asian countries, and cruise ships, telling "China's story" through national trend products. We actively promote the global reach of cultural and creative products. Relying on the "Happy Chinese New Year" cultural carnival carefully created by the Ministry of Culture and Tourism overseas, we have developed the "Auspicious Snake" series of cultural and creative products, hoping that its cute and antique image will trigger a new wave of Chinese culture, attracting more foreigners to understand China.

Civilization is enriched by exchange and mutual learning. Adhering to the principle of "using culture to shape tourism and tourism to highlight culture" requires the joint efforts of a capable government and an effective market. As a state-owned tourism enterprise, we have both the obligation and responsibility to cooperate with governments at all levels in cultural and tourism work, actively respond to and support tourism policies, enrich product and service offerings, expand overseas promotion channels, and contribute our strength to enhancing China's international influence and cultural soft power in tourism.

The construction of a strong tourism nation is in full swing. Under the leadership of the Ministry of Culture and Tourism, we are willing to strengthen exchanges and cooperation with all sectors of the industry, jointly build a tourism ecosystem, share development opportunities, achieve mutual success, and work together to contribute China's strength and model to the construction of a world tourism power.

Finally, I wish the forum a complete success! Thank you all!

Investment Special Survey on the Culture and Tourism Industry

To gain a deeper understanding of the investment and development of the culture and tourism industry, the China Tourism Academy, in conjunction with the China Amusement Machine and Amusement Park Association and other organizations, is conducting a special survey on investment in the culture and tourism industry. We sincerely invite all member units and culture and tourism enterprises to participate in the survey.

▲Scan the QR code to fill out the questionnaire

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