New pact to allow more Chinese travelers into USA

— -- U.S. and Chinese officials meeting in Beijing today signed an agreement that is expected to increase by hundreds of thousands the number of Chinese who visit the USA each year. The U.S. Commerce Department says the agreement will result in about 580,000 Chinese arrivals annually by 2011, up from about 325,000 now. Currently, China allows only travelers who have a business, government or educational reason to come to the USA.

As a result of the new agreement, the communist government of China is adding the U.S. to a list of approved destinations for group tours. China has similar agreements in place with countries in the Asia-Pacific region, such as Australia, Malaysia, Singapore and Japan, as well as more distant countries such as France and Canada.

"Today's agreement will open a large and growing market for the U.S. travel and tourism industry," U.S. Commerce Secretary Carlos Gutierrez said in a statement.

The agreement, which also permits U.S. tourist destinations to market themselves in China, came on the first day of trade talks that the federal government hopes will increase U.S. exports to China. Gutierrez and U.S. Treasury Secretary Henry Paulson are in Beijing for the talks.

U.S. travel industry officials expect the agreement initially to produce a tourism boom in a few large cities including Los Angeles, New York, San Francisco, Orlando and Las Vegas when it takes effect in the spring.

"It's a big deal because it really opens the door for Chinese to come here," says Roger Dow, CEO of the Travel Industry Association. The group has been lobbying for a tourism agreement for about three years.

Last year, Chinese visitors spent an average of $6,000 each while traveling in the U.S., according to the Commerce Department. That's more than twice as much as the next highest overseas visitor groups, Dow says.

Spending tends to be high, because the Chinese who visit now generally are among China's elite. Today, the U.S. sees mainly citizens traveling on government business. They typically attend a trade show and conduct business for three days, then extend their visit for two weeks to visit big cities or major tourist attractions. The new agreement requires Chinese tourists to obtain visas to visit the U.S., and the U.S. could terminate the agreement if "significant numbers" of travelers overstay their approved period.

Some U.S. destinations have been preparing for the day that the Chinese would flock here in greater numbers.

Los Angeles, for instance, already considers China one of its fastest growing markets. Last year, the city created a Chinese-language website to start establishing relationships with tour operators, says Patti MacJennet, a marketing executive with the city's tourism agency, LA Inc. About 110,000 Chinese visited Los Angeles last year, she says.

"LA stands to benefit more than probably any destination in the country, because we are the primary gateway for travel to China," she says. Los Angeles is the only U.S. airport that has non-stop service from three Chinese airlines, which makes LA a relatively easy trip, she says.

When Chinese people visit Los Angeles, she says, they like to visit places "that they've seen in photographs and in the movies," such as Universal Studios Hollywood, Disneyland, Venice Beach and the Kodak Theater. Most are not accustomed to Western food, so they tend to eat in Chinatown or at Chinese restaurants in Monterey Park, she says.