Chinese in Germany.jpgEurope runs the risk of allowing other regions to move ahead in exploiting the huge potential of China's outbound tourism market.

So say the organisers of the World Travel Market, which is taking place in London this week and has China is one of its key themes. As China allows more of its citizens to travel abroad, Europe risks losing out to regions such as the Middle East, Africa and Latin America, the WTM warns.

The Financial Times dutifully reports the warning and fleshed it out with some familiar statistics. Chinese outbound trips to destinations outside south-east Asia are expected to reach nearly 16m next year, nearly double the figure for 2005, according to Euromonitor. By 2010, that figure is expected to rise to nearly 37m, a third of all Chinese outbound trips.

What can Europe do to attract a bigger share of the Chinese travel cake? Infrastructure is a big problem, according to the WTM's Global Trends report, which cites weaknesses in areas like parking for coaches, access to city centres, credit card facilities and ATMs outside main tourist areas. Chinese tourists are restricted in the amount of cash they can carry abroad and so need to be able to withdraw cash abroad using payment cards.

I don't see Europe having a shortage of ATMs -- at least not compared with competing destinations in the Middle East, Africa and Latin America. And restricted coach parking and congested centres come with the territory in Europe's human-scale cities, so unless Chinese tourists only want to visit out-of-town theme parks -- where coach parking isn't a problem -- I don't really see these issues as deal-breakers.

However, the FT puts its finger on one real problem for Chinese tourists, particularly those planning to visit the UK: a shortage of mid-priced accommodation. Your correspondent recently tried to find a reasonably-priced hotel in central London. Mission Impossible.

Similarly, the high cost of eating out in London -- even in Chinatown -- is likely to leave an unpleasant taste in the mouth of all off all but the most deep-pocketed Chinese tourists.

What the UK loses, continental Europe gains. France is the leading European destination for Chinese tourists, according to WTM, attracting 472,000 visitors last year, followed by Germany (see picture).

See this recent EngagingChina report for more on the efforts of western CVBs to attract Chinese tourists.