14 December 2007

USA finally gets ADS from China

The USA has finally qualified for ADS making the world’s second largest market inbound open to the world’s fastest growing source market. Getting ADS – Approved Destination Status – was never a sure thing. The politics are very complex as can be imagined. Also the USA is not the first. Many countries already have mature ADS agreements with China and have seen the benefits rise enormously. Why is ADS important? As the China market opens up to new travelers seeking new experiences the USA would be number 1 on their list of places to go. For many the first trip is important as travel begets more travel. China is fast becoming a consumerist society driven by their burgeoning individual middle class wealth. Their lack of other major expenses (housing and education plus costs of children) drives a bigger disposable portion of their salaries.
However a cautionary note. If the USA continues to make it difficult to obtain Visas and persists in setting up roadblocks to entry from China (justified or not) then the business will go elsewhere. The USA also will need to start learning to speak Mandarin.

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