To Indian industry leaders, China is already a hot business destination. The land of the dragon is now poised to be the next hot destination for outbound Indian tourists.

Leading domestic tour operators, and even airlines, are busy designing various tour packages to China. Air-India has started testing the waters for a thrice-a-week flight to Shanghai.

The China tour products are likely to hit the market in the coming weeks, which industry sources said, had been delayed by the outbreak of the Sars epidemic.

The fatigue factor in Southeast Asian destinations such as Singapore, Thailand, Malyasia and Indonesia; the Indian affinity for anything Chinese, from food to silk; and the mystique involving interior China are driving the craze, travel companies say.

Frederick Divecha, senior vice-president at SOTC, the outbound travel division of Kuoni Travels, told Business Standard: "Our research shows there is a good demand for China as a travel destination. We are in the process of putting together various tour packages to China and are also in talks with airlines for group discounts." He, however refused to comment of the package prices.

Lalit Sheth, chairman and managing director of Raj Travels, said: "Increasingly the Indian traveller wants new outbound tour options. The fact that people still know very little about China is turning out to be a major draw."

Raj Travels, in fact, is one of the first to get off the block. The leading tour operator plans to put a price tag of around Rs 80,000 per person, inclusive of air fares, for a 13-day trip to China covering five cities.

Currently, a two-night package to China is available for around Rs 38,000. A 13-day trip covering Southeast Asia could, on the other hand, set you back by around Rs 60,000. Air-India has initiated discussions with travel agents to get a feel of the demand in this sector.

China Airlines operates to Delhi while Air-India and Cathay Pacific service the India-Hong Kong sector. With business travel sharply increasing, the industry is also expecting more flights to China over the coming months.