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US eager to cater to Chinese tourists

AMY TAXIN
Associated Press

COSTA MESA, Calif. (AP) — On a hot summer day, nearly two dozen Chinese tourists descended from a white shuttle bus for an afternoon of shopping at one of Southern California’s signature upscale malls.

One tourist conferred with a salesman at South Coast Plaza about a plum-colored, $610 Prada handbag while fellow visitors on the 10-day tour sauntered through the mall, each with their sole child in tow, after a morning of whale watching off the California coast.

It’s a common scene at the popular destination in Orange County, which is doing what it can to keep buses filled with Chinese tourists coming. To make them feel at home, it accepts China’s UnionPay card and provides Mandarin-speaking salespeople.

From the mall’s shops to tourist spots that offer maps and brochures in Mandarin to hotels serving congee, or rice porridge, for breakfast, businesses in California are trying to entice the growing numbers of Chinese tourists coming to the U.S. to visit the state — and spend money.

Tourism from China to the U.S. has soared since the countries signed an agreement in 2007 promoting travel. More than 1.8 million Chinese visited last year, a three-fold increase in five years. By 2018, the number is expected to surpass 4 million, according to the U.S. Department of Commerce.

California, the No. 1 destination, holds particular allure due to its proximity to China, theme parks and sunny weather. Nearly half of all Chinese tourists make a stop in the state.

Haybina Hao, of the National Tour Association, which qualifies U.S.-based tour operators to receive Chinese tour groups under the 2007 agreement, said the tourists are keen to see how a relatively young country like the U.S. developed so quickly and became so prosperous.

“Until they have visited U.S.A., they don’t feel they have done their international travel yet,” Hao said. “They need to see it and put themselves in the photograph, so they can prove they have done this.”

During their travels, they each spend an average of $5,400, 21 percent more than the average for all overseas tourists.

“We see tremendous potential,” said Nick Hentschel, vice president of AmericanTours International LLC. He said 15 percent of the company’s business now stems from China compared to virtually none a little more than five years ago.

Hentschel said China is the only country where ATI, which originally focused on tourism from Western Europe, Australia and New Zealand, has opened a local office. “But it is cutthroat,” he said, adding that some tour operators slashed prices to vie for a place in the Chinese market.

At first, tours from China mostly included older people, some who had saved for years to make the trip. But now more also include middle-aged parents bringing their only child to see America and school groups of teens who tour during summer break.

Many are eager to visit Disneyland and snap photographs at landmarks such as the Hollywood sign and San Francisco’s Golden Gate Bridge. They enjoy trying American foods — steak is a favorite — and taking advantage of cheaper prices for designer goods.

“It’s shopping paradise,” said 35-year-old Cici Chen on a stop at Disney California Adventure. Chen said she planned to fill up her suitcases on her California vacation before returning to Shanghai.

In the early years, Disney officials traveled to China to try to explain to the elder generations what the park was about since many weren’t as familiar with American stories and movies as are younger visitors today.

“A challenge was many of our Chinese guests were not familiar with the Disney stories,” said Nicky Tang, director of Asia Pacific sales for Disney Destinations, of the older generation of tourists. “They grew up not knowing who Snow White is or Cinderella or Peter Pan.”

Many Chinese tourists see America from large tour buses, while some travel in smaller groups or rent cars to explore on their own. Others come on trips sponsored by employers as job-related perks, and travel in huge groups.

A 7,000-strong contingent held a two-day meeting in Southern California earlier this year and then fanned out to travel across the region. A group more than twice that size is expected in California next year, said Ed Fuller, president of the Orange County Visitors Association.

Zhang Huan, 42, was among those touring Disney California Adventure with his wife, mother-in-law and 11-year-old son. He said he budgeted $20,000 for the family’s first U.S. trip. While the itinerary mostly focused on leisure, Zhang said he was also looking forward to making a stop with his son at a college campus.

He hopes it’s not the last visit there.

“If he can study hard, he can go to Stanford,” Zhang said.

___

Associated Press staffer Roy Wu contributed to this report in Los Angeles.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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