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China specialist warns of price rises

A leading operator to China has predicted price rises in coming years as a growth in inbound tourism prompts suppliers to increase rates.


Laurence Hicks, managing director of Wendy Wu Tours, said efforts within China to curb inflation on consumable products would not extend to sectors such as tourism.


He said the operator had absorbed price hikes from suppliers including hoteliers and tour guides for 2013, but would be forced to raise prices for its 2014 programme.


“We have seen significant rises in ground costs throughout the country, but specifically in the cities of Beijing, Shanghai, Chengdu, Xi’an and Chongqing where the economic development has been rapid and extensive,” he said.


Hicks’ comments come following the release of a Euromonitor International report which predicted annual growth in inbound tourism to China of 2.3% each year for the next five years.


“The value will still be there but what we are witnessing is that all the components of a tour are being subjected to higher than inflation rises. This naturally will affect tour prices in the future,” he added.

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