American Express has witnessed a growing demand for corporate travel
management within the People's Republic of China since it established its first
corporate travel joint venture in mainland China a year ago. To better meet the
demand, American Express announced today that it opened its Shanghai business travel center - CITS American Express Air Services Limited on
December 18th, 2002 and that American Express has now received the necessary licenses to open a business travel center in Guangzhou.
CITS American Express Air Services Limited is located in the Bund Center,
Yan-an Road. CITS American Express is the only travel management company
in China to have received all the necessary licenses to offer travel management services and to issue both domestic and international air tickets
in Beijing and Shanghai.
The Company also announced the appointment of Mr. Yam Goh to the newly
created position of Head of Corporate Travel, China. Currently, Mr. Goh is the
Managing Director of the Company's joint venture in Beijing and Shanghai. In
his new capacity, Mr. Goh will oversee American Express' corporate travel
operations and development in China.
Mr. Goh's appointment represents another step towards American Express'
commitment to the corporate travel market in China. Since establishing its first
corporate travel joint venture in Beijing, the Company is now servicing over 30
multinational and local corporations operating in mainland China, including
Ford, AT&T, SAP, McDonalds, British American Tobacco, Budweiser, Corning,
Veritas, Halliburton, China Netcom Corporation, Goldman Sachs and Morgan
"Despite the currently turbulent global economy, China stands out as one of
the few economies to witness strong and steady growth, and demand from corporations to manage their corporate travel services has increased
significantly," commented Mr. Goh. "We estimate that the corporate travel &
entertainment market in China is worth US$ 10 billion annually, of which $4
billion to $5 billion is business travel expenses. We believe that this market will
continue to enjoy double-digit growth annually in the next five years. In
addition, according to a recent study conducted by American Express on global travel trends, 35% of the respondents in China expected an increase in
the level of their business travel this year. We anticipate a heightened need in
China for the global purchasing savings and process savings, along with local
market expertise American Express is uniquely prepared to deliver," Mr. Goh
American Express is
one of the leading corporate travel agencies throughout the world in the area of travel and entertainment management services. The Company
plans to expand its corporate travel business into forty other cities in China
during the next twelve months as the market develops.
Mr. Goh added, "I am delighted with our progress in China, and our unique
ability to service both multi-national and local companies. We have also
received the necessary licenses to set up a business travel centre in Guangzhou and we plan to open that office in February."