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Business Travel International announced Wednesday that it has formed a joint venture firm with Jin Jiang International in Shanghai, which targets China's business travel market.
Uk-based BTI will take a controlling 51 percent ownership in BTI Jin Jiang, the city's first joint venture travel company, while Jin Jiang International has the balance. The British company said it chose Jin Jiang International because "the company has strong support from the local government."
There are more than 10 joint venture travel firms in Beijing. From January 1, 2003, overseas companies are allowed to invest in the travel industry.
Bti jin Jiang (China) plans to set up subsidiaries in Beijing and Guangzhou, Guangdong Province, on January 1, 2004, and aims to become one of China's top three business travel service providers in five years.
Bti operates in nearly 100 countries and many Fortune 500 companies are its clients. But as an increasing number of multinational clients flock to China, BTI is determined to explore the Chinese market to meet the demands from both its existing and potential clients.
"The Chinese mainland is a very important place for both inbound and outbound travelers," said David Radcliffe, chief executive officer of BTI. "Unlike the mature markets of Europe and the United States, the corporate travel market here is just fledging."
"Business travel took up only a small proportion of our business before," said Song Chaoqi, assistant president of the Jin Jiang International.
In shanghai, business travel has replaced leisure travel to be the most important travel market. Some 62 percent of the city's total travel expenses are spent on business trips, while more than 60 percent of Fortune 500 companies are already located here.
Nationwide, official statistics show Chinese companies have an annual budget of more than US$4.2 billion for business travel, and growth is expected to rise 20 percent annually.
With a diverse range of interests, including hotels, restaurants and trans-portation, the country's largest hotelier is one of the largest domestic travel service providers, accounting for about 50 percent of the local travel market.
The state-owned corporation was formed via a merger of Shanghai New Asia (Group) Co Ltd, Huating Group and Shanghai China Travel International Service.
(eastday.com September 4, 2030)
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