Guangzhou got its first wholly-owned foreign travel firm yesterday, after the world's leading travel agency Kuoni Travel, opened its office in the city. The office will focus on in-bound tourism.

The agency is under the control of Kuoni Travel (China) Ltd in Hong Kong.

Kuoni Travel set up two offices in Shanghai and Beijing last year.

"The office in Guangzhou allows us to make even more effective use of our experience in the Chinese market, and to make strategic plans for this extremely promising market," Reto Wilhelm, executive vice-president of Kuoni Travel Holding Ltd, said yesterday during the press conference.

Like all Kuoni Travel (China) Ltd's offices, including the base in Hong Kong, the Guangzhou branch will operate under the brand of Sky Travel.

Since foreign travel agencies are not allowed to offer outbound travel services so far, Kuoni Travel's Guangzhou office will focus on the domestic market.

Guangzhou's local tour agencies have taken up a big share in the market of leisure tourism. Wilhelm said Kuoni did not want to compete with the local players in leisure tourism market so far, and it has been focusing on business tourism and the high-end market, such as receiving the foreign visitors who come to Guangzhou for business or attending conference and fairs.

Wilhelm said once China National Tourism Administration (CNTA) approves foreign travel agencies to work on outbound sector, Kuoni Travel would step up efforts in pushing the outbound tourism service on the mainland.

Danny Kondic, managing director of Kuoni Travel (China) Ltd, said the criteria for the entry of foreign travel agencies were very strict at present.

"Firstly, a company's turnover all over the world must exceed US$500 million, and then we have to invest at least US$500,000 in Chinese market," Kondic said.

Guangzhou is doing quite well in manufacturing industry and exhibition and fair industry. Moreover, Guangdong's annual gross domestic product (GDP) takes up 11 per cent of the whole country.

This is why Kuoni Travel chose Guangzhou to establish its third office, he added.

All staff in Shanghai, Beijing and Guangzhou are from Chinese mainland. There are five staff now in Guangzhou office.

The company doesn't have any expansion plan so far.

Alfred Kuoni founded his first travel agency 100 years ago in Zurich, Switzerland. It is now one of the world's leading travel groups.

Kuoni has branches in 27 countries across Europe, Asia, Africa, and North America.

About 75 per cent of Kuoni Travel's turnover is generated outside Switzerland.

Editor: Yan