In general, autumn is the peak season for inbound tours. It was assumed that China would be more popular with overseas tourists after the Olympics, but last October, the number of overseas visitors actually dropped by 5.94 percent compared to the same period in 2007. Domestic tourism also suffered grim problems because the Chinese stock market and real estate industry all plummeted sharply in value.

"The global financial crisis led to a perceptible reduction in the number of tourists coming to China," comments Wang Yanguang. "The tourism industry is very sensitive and easily affected by the global economic situation. In a period of global recession, it's hard to know how the industry will fare in 2009." To make matters worse, 2009's Spring Festival came earlier than usual, while the seven-day Labor Day holiday in May has been cancelled, creating a prolonged low season from the beginning of February.

Many developed countries have either plunged into recession, or are teetering on the brink. The International Monetary Fund estimates that economic growth in Japan, the United States and the Euro zone will be non-existent in 2009. "Demand for inbound tours may continue on a downward trend," Wang comments gloomily.

Zhu Li, a department manager of the Guizhou Overseas Travel Corporation (GZOTC), is concerned that in order to save money, many tourists have changed their travel plans from outbound to domestic tours. This change has stimulated the provincial tour market. Statistics show that at the beginning of 2009, demand for domestic tours rose by 20 to 30 percent, in stark contrast to the lack of growth in outbound tours.

As the global financial crisis bites, low-price tour packages have become the best way to stimulate the declining market. "Low-price promotions are a method of pulling potential tourists back, but the competition is not as vicious as in the past," says Wang Yanguang. "The question is whether demand can be substantially increased simply through low-price deals."

National Leisure Program

"The financial crisis lessened our business, so the company leadership tries to reduce expenditure. Last year our annual bonuses were much less than previous years, and payrises were hopeless. My boyfriend and I were planning a tour to Sanya in Hainan, but we have changed our plans and will join a provincial tour," says Liu Ying, a foreign trade dealer at a Guangdong toy factory. In the past she had to get straight back to a busy work schedule when the seven-day Spring Festival finished, but this year she took a 15-day break.

"To expand domestic tourism, the National Leisure Program will be launched to promote inbound and outbound tours, to stimulate consumption and inject vitality into the domestic tourism market," remarks Shao Qiwei, chairman of the National Tourism Administration.

The National Leisure Program involves a series of measures designed to give different groups a chance to travel, including free trips for outstanding staff in various enterprises, and government-sponsored trips for low-income groups, students and retirees. The program aims to increase people's travel opportunities and raise the annual number of outbound tourists to 100 million by the end of 2016. On February 21, Guangdong Province took the lead in this project, and migrant workers like Liu Ying are now able to get preferential prices at certain local scenic spots by showing their temporary residence permit.

During Spring Festival, tourists to Shandong Province enjoyed various preferential measures and colorful tourist activities. Nearly 50,000 free tickets for local 3A scenic spots or higher were distributed. Moreover, star-rated hotels in 10 major tourist cities offered 1,000 free rooms as a reward for tourists going to Shandong.