With a history of more than 3,100 years, Xi’an, the ancient capital of 13 dynasties, received only 551,000 international tourists (including arrivals from Hong Kong, Macao and Taiwan) in this year’s first 10 months, according to statistics on the official website of China National Tourism Bureau (CNTA). Compared with the same period last year, the figure is down 37.55 percent, resulting in the country’s sharpest tourism slump after Chengdu, capital of Sichuan province.

Last year, tourism, contributing to 15.7 percent of the GDP of Xi’an, was on top of a list of its five leading industries, including culture, service, hi-tech, manufacturing and tourism. A manager of the city’s Hq Guesthouse surnamed Mei said, the slump in the industry has caused many tourism operators shut shop in the past six months and in its bid to stay afloat, the guesthouse house has cut its prices by half and shaved around 30 percent off the local Warriors tour. Another tourism firm, Xi’an Travel Service, has also been forced to cut down its prices.

Todd Subritsky, a spokesman with Sino-New Zealand Tourism Group Ltd, which brings foreign tour groups to Xi’an, said thousands of people in the ancient capital depended on tourism for a livelihood. “But many of them are now wondering if they will still be in business this time next year,” he said.

Xi’an, whose reliance on tourism highlights the threat accompanying the dwindling of inbound tourists, is not the only one place and several other cities also are bearing the brunt of the massive slump. The latest CNTA statistics showed that the number of overseas arrivals in the country dropped down by 1.06 percent in the first 11 months of this year, compared with the 120 million visitors during the same period last year. Three other cities, Chengdu, Qingdao and Wuxi, have all seen a dramatic drop in international arrivals, all down by at least 10 percent in the same period.

Xu Yan, a CNTA official, said that the administration had started to carry out promotions in various major cities so as to reduce the bad effects of the global economic downturn. For example, in December, two CNTA deputy chiefs headed delegations to the US and Australia to promote tourism in China.

However, industry insiders like Liu are hoping to see more than just organized promotions. “We hope the government will consider realigning our currency more accurately to account for the severe reductions in foreign currencies,” she said. “Like exporters, we too are taking a beating with current rates.”

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“Traveler’s checks have gained some popularity in China. However, they are not as popular as they should be simply because not many Chinese are familiar with them,” said Diannie Tsai, vice-president and general manager of American Express’s global traveler’s checks and prepaid services division, Greater China. “American Express has partnered with China International Travel Service for promotional purposes and is seeking opportunities to forge cooperation with other travel or overseas educational agencies.”

Altogether 40.95 million Chinese went overseas in 2007, with an average expenditure of $928. And the number is expected to reach 44.8 million this year. China has already overtaken Japan to become the top country in Asia regarding outbound tourists, the number of which is anticipated to be the largest in the world by the year 2020.

Traveler’s checks are available in 7 currencies and 28 denominations and can be cashed through more than 120,000 service outlets around the globe. They do not expire and are refundable when lost or stolen. The convenience and safety they provide will ensure them a promising market among Chinese tourists, students and businessmen.