Sequoia Capital China and IDG Capital have teamed up with Chinese state-run travel agency CYTS to launch an investment vehicle, CYTS Hongqi Fund, to capitalize on consumer upgrade in the tourism industry, according to a company filing submitted by Shanghai-listed CYTS.
Sequoia previously invested in a number of tourism companies, including travel information website Lvmama, online travel agency Tuniu and Yaochufa.
In 2015, China's tourism industry recorded revenues of RMB4.13 trillion (US$600 billion), up 11% year-on-year and contributing 4.9% of China's GDP that year, according to China National Tourism Administration.
China has said that it plans to invest RMB2 trillion (US$290 million) in the tourism industry during the 13th Five-Year Plan from 2016 to 2020, and aims to increase the industry's share of GDP to 12%.
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