FACT SHEET
U.S.-CHINA GROUP
LEISURE TRAVEL MEMORANDUM OF UNDERSTANDING (MOU)

OVERVIEW

• The United States and China have signed an agreement to facilitate Chinese group leisure travel to the United States. This agreement provides the necessary framework to permit group leisure travel from China to the United States.
  
  
• Chinese regulations restrict companies from organizing and marketing package tours for leisure purposes to countries that do not have agreements in place, often referred to as Approved Destination Status agreements (ADS).  This MOU fulfills this purpose without changing existing laws or policies of the United States, including the issuance of visas.
  
  
• Chinese travel agencies will be allowed to work with U.S. companies to organize and market packaged group leisure tours to the United States.  In addition, U.S. travel destinations will be able to market their brands in China. 
  
  
• This agreement is expected to be implemented in the Spring of 2008 after both countries have put systems in place that will provide for an orderly market transition.
  
  
• Provisions in the MOU permit the United States to discontinue participation in the MOU should a significant number of group leisure travelers overstay their period of admission to the U.S.
  
  

U.S. – CHINA TOURISM MARKET

1. In 2006, China ranked as the 17^th largest international market for the United States, with over 320,000 Chinese visitors to our nation.
   
   
2. Chinese travel to the United States had a record year in 2006.
   
   
3. Chinese visitors spent a record $2.1 billion in the United States in 2006 (including $1.6 billion on U.S. travel goods and services and $431 million to U.S. carriers).
   
   
4. The Department of Commerce forecasts that the United States will host 579,000 Chinese travelers by 2011; an 81% increase from 2006.
   
   
   

CHINESE VISITOR AND SPENDING TRENDS IN THE UNITED STATES

(1) Includes travel receipts at U.S. destinations and passenger fare receipts/exports on U.S. carriers.