Although demand for overseas travel has shown a marked increase among mainland Chinese - due to rising disposable incomes and economic growth - there still remain a number of red-tape issues to resolve before the outbound market booms.
"It will be a steady growth rather than an avalanche," says China National Tourism Administration deputy director general Li Xue Dong.
"There has been growth in people having holidays abroad, and this will continue with the progress in Approved Destination Status (ADS) negotiations, as well as other legislation over exit visas and passports."
New Zealand and Australia, which were granted ADS this year, are expecting dramatic growth in arrivals from mainland China. The Australian Tourist Commission (ATC) believes that China will become its primary inbound market in five to six years. New Zealand is expecting in the region of 30 to 50 per cent growth in visitors from China in the 2000-2001 fiscal year.
"There is certainly a realisation among the government that the Chinese people will be doing more travelling abroad in the future," says ATC regional manager for Northeast Asia Johnny Nee. "The trend will be for giving the five-year passport, rather than the single-trip passport, as demand increases."
Hong Kong is the mainland's primary destination in Asia, with 1.7 million visitors in January-July this year - far ahead of Thailand's 478,880 and Singapore's 142,000.
The Hong Kong Tourist Association (HKTA) recently took part in a trade mission to Shanghai with 50 representatives from 35 hotels, travel agencies and other tourist industries in the SAR. HKTA China manager Ettie Tan says: "The Shanghai, Jiangsu and Zhejing region is the second largest source market after Guangdong and accounts for more than 15 per cent of total arrivals from the mainland. Promotion in China is money well spent."
The HKTA is also aiming to capitalise on meetings incentives conferences and exhibitions business from China following the mainland's recent accession to the WTO.
"We would like to further enhance Hong Kong's status as a gateway into China," says Tan. "With WTO status, a lot of Western companies will want to do business with China. There will certainly a need for more conferences and exhibitions. There will also be promotions, and incentives business coming out of China. Hong Kong is a perfect location for this."