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According to the National Bureau of Statistics, investment in capital construction for the tourism sector increased from RMB16.4 billion in 2003 to RMB29.5 billion in 2004. The PRC central government and various levels of provincial and local governments in the PRC have actively sought to promote investment in the PRC's tourism infrastructure in order to further develop tourism. The introduction of weeklong holidays for Labor Day in May and National Day in October as well as the paid vacation days and the relaxation of outbound travel restrictions are among the policy initiatives put forth by the PRC Government to encourage tourism among the Chinese people.
The PRC's domestic tourism has gradually developed since the mid-1980s because of the implementation of more open policies in the PRC since the late 1970s. Domestic traveling has become especially popular since the early 1990s. Domestic travel volume increased from approximately 629 million trips in 1995 to approximately 1,212 million trips in 2005. The chart below illustrates the growth of domestic trips made by urban and rural residents during the period from 1995 to 2005:

The increase in the PRC's domestic tourism has resulted in an increase in earnings attributable to domestic tourism. From the period of 1995 to 2005, the PRC's domestic tourism earnings increased from RMB137.6 billion to RMB528.6 billion, or a CAGR of 14.4%.
The chart below illustrates the increase in domestic tourism earnings during the period from 1995 to 2005:

Per capita expenditure on tourism by urban residents and rural residents increased from RMB464.0 and RMB61.5 to RMB737.1 and RMB227.6, respectively during the period from1995 to 2005. The CAGR of per capita expenditure on tourism by urban residents during the period was 4.7%. The chart below illustrates the per capita expenditure on tourism in the PRC during the period from 1995 to 2005:

Domestic tourist arrivals in Shanghai increased from 1,814,000 trips in 2000 to 23,006,000 trips in 2005, at a CAGR of 66.2%, ranking first in terms of growth among all other destinations in the PRC. The table below illustrates the growth of domestic tourist arrivals of the top 10 destinations in the PRC:
Domestic trips by Destination
Rank Destination 2005 Domestic Tourist Arrivals 00-05 CAGR growth
('000 trips)
1 Shanghai 23,006 66.2%
2 Beijing 16,956 43.1%
3 Zhejiang 5,030 34.9%
4 Jiangsu 5,690 28.7%
5 Yunnan 3,694 29.8%
6 Fujian 5,508 27.8%
7 Shangdong 2,136 24.2%
8 Guangxi 3,056 20.0%
9 Guangdong 25,210 16.0%
10 Shanxi 1,021 7.4%
Note: Data excludes day trips
The majority of domestic travels made by the urban residents were associated with sightseeing and holidays. The chart below illustrates a breakdown of the purpose of travel made by urban residents in 2004:

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