July 3, 2008
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Dear Fellow Investor,

While the first official day of summer was two weeks ago, summer doesn't really seem to kick start until the Fourth of July. That's when families really start taking vacations–packing up the kids and driving out to the beach for picnics and relaxation.

These types of summer vacations are fairly typical to most American families. But as I've discussed on a number of occasions, it hasn't been until recent years that Chinese have started traveling more. And even then, most of their vacations have been limited to China's borders–until now.

In recent years, more and more Chinese have been traveling overseas. Almost 40 million Chinese traveled across the ocean to visit a foreign country in 2007, and this number is growing in the double digits annually.

The U.S. has actually become a popular destination for Chinese. In fact 120 Chinese tourists arrived in Washington, D.C. in mid-June as the first group of Chinese tourists who are visiting the U.S. under a new tourism deal between the U.S. and China.

Under the deal, the U.S. allows Chinese tourist groups to travel in the country and, in turn, the U.S. was given "approved destination status" by China -- the 134th country to receive the title. U.S. destinations are now being directly advertised to the Chinese public, and Chinese travel agencies are creating package tours to the U.S.

What is Drawing Chinese to the U.S.?

Sheer curiosity.

Many Chinese tourists are curious about what makes America the wealthiest and most powerful country in the world. And with every stop in the U.S., they will have that question in mind.

One symbol of wealth and progress that these Chinese tourists will be keeping an eye out for is the amount of skyscrapers in the U.S.'s major cities. I thought it was interesting when many affluent Mainland Chinese who have been to the U.S. already told me that they were disappointed by the skyline in New York. Chinese tourists expected to see more towering skyscrapers in the richest city in the world. Indeed, Shanghai built more skyscrapers just in the past two years than the total number of skyscrapers in New York City.

While America's manmade infrastructure may be unimpressive to Chinese tourists, the natural scenic beauty of places like the Grand Canyon and Yosemite National Park impresses most tourists. These destinations are what draw Chinese tourists to visit the U.S.

In fact, recent surveys in China rank the U.S. as the most desired foreign destination for Chinese tourists. And under the new travel agreement, the Department of Commerce estimates that the number of Chinese visitors to the U.S. will reach 579,000 in three years.

While this number is quite impressive, travel industry professionals think that the actual figure will probably be a lot higher.

Profit from China's Desire to Travel

Right now, China is the fourth-largest outbound travel market in the world. But under the new travel deal, more Chinese will be able to book tour packages that make it easier to visit other countries.

Combine this ease of travel with the Chuppies' desire to spend their money on seeing the world, and you can see that China is set to rise in the ranks of hot outbound travel markets. This is great news for travel companies in China and the U.S.

One particular Chinese travel agent -- let's call it China's Expedia -- will gain even more business from the increased tourist activities. Especially as more Chinese tourists come to the U.S.

Although this company's core strength is in booking hotel and air reservations in China, the company has expanded to packaging high-end tour groups and other higher-value-added travel services such as executive services for business travel. This company will truly be one of the major beneficiaries of the new influx of Chinese tourists in America.

My China Strategy subscribers already have more than a 100% gain in this company. And I bet this is just a drop in the buck of profits that we'll see in the coming months as more and more Chinese travel to the U.S. and the rest of the world. To get my latest advice on this company and how you can profit from China's increased desire to travel, join China Strategy today.

Signed Robert Hsu
Robert Hsu