Right after the SARS epidemic in 2003 started so called “zero-fee” package tours because of the severe drop of travellers. Zero-fee tours are cheaper than the basic costs of transportation, accommodation and attraction tickets. In order to regain the losses, tour guides get high provisions from different shops.

This practice obviously damages the Chinese tourism market, says Shao Qiwei, director of the CNTA. From 2006 CNTA has taken action to end the illegal activity of travel agencies and tour guides, which lead to a total fine of RMB 20 million. Shao Qiwei also said that the CNTA will pursue their course to clean up the travel market of “zero-fee” package tours.

This is a good example why it will be very difficult for foreign travel companies to enter the price driven Chinese tourism market. The price seems to be one of the most important factors for Chinese tourists.