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Race by govts for Chinese tourist dollars

Beijing - Embassies are re-writing visa rules and governments are hammering out aviation pacts as record spending by Chinese travellers sets off a race around the world for a share of the Chinese tourist dollar.

Chinese spending on international travel in 2014 rose to $165bn from $129bn in 2013, the biggest percentage increase in two years, according to data released by the State Administration of Foreign Exchange last week.

Chinese disposable incomes have been steadily rising and would-be travellers got an additional boost in the past year from favourable foreign exchange rates, with the yuan appreciating more than 10% against the yen and the Australian dollar. The gains versus the euro have been even greater, at more than 14%, and the yuan set a record against the single currency last month.

Governments near and far are keen to get their countries onto Chinese itineraries. In November, the United States signed a landmark deal with China extending one-year visas issued to Chinese travellers to up to a decade.

This year Malaysia and Indonesia are planning visa exemptions, while Thailand is considering exempting visa fees, which were briefly suspended last year. Australia in January signed an agreement with China allowing more passenger flights from Beijing, Shanghai and Guangzhou with immediate effect.

Air traffic data for China's big airlines confirms a rising preference for overseas travel in the world's most populous nation. Air China's international routes recorded 14.6% growth in 2014 in revenue passenger kilometres (RPKs), a gauge of traffic, versus 6.1% for domestic routes, Reuters calculations show.

China Southern Airlines' international RPK growth was 20.2% versus 10.0% domestically. China Eastern Airlines posted international RPK growth of 4.4%.

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