Africa was also opened to Chinese tourists in 2006, with more than 10 countries, including Egypt, Kenya, Tanzania and Namibia, qualifying as approved destinations.

Increased travel has naturally brought benefits to airlines and hotels, Euromonitor's research shows.

The aviation industry continued to show strong profits despite high fuel prices that boosted costs 23.5 percent.

China National Aero-Technology Import & Export Corporation Group was the most profitable, with total a 3.97 billion yuan in net profits.

Spring Airline had the highest occupancy rate, at 95.3 percent, while Air China was the winner in international business travel, with an occupancy rate of 75.9 percent.

Economy accommodation including hotels, motels and youth hostels are also growing in popularity. One of the most famous chains of economy hotels in China is Home Inns, which now has 110 hotels and had a successful stock offering on the NASDAQ in 2006.

Other economy hotels have expanded into different regions, most enjoying occupancy rates 10 percent higher than the industry average of 78 percent.

With the approach of the Beijing Olympics, and China's business and leisure travel continuing to boom, world famous hotel groups are increasing their investment. In 2005, InterContinental Hotels Group, one of the world's top hotel chains, brought its road show to Hong Kong, Shanghai and Beijing.

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