4.1 Introduction
The two preceding chapters (Chapters 2 and 3) have reviewed the literature on crisis management in tourism and on tourism destination respectively, the purpose being to establish a theoretical framework for the subsequent research in this thesis. Given the focus of that research on tourism in the Three Gorges region of China, the purpose of this chapter is to contextualize it through a consideration the contemporary state of inbound tourism in China. Based upon an analysis of China’s tourism policies, its tourist resources and principal source markets, and the main tourism-related services, the chapter will demonstrate the importance of inbound tourism to China, explore how tourism policy, existing tourism resources and main tourism-related services contribute to China’s tourism, and identify what the Chinese government has done to support and develop inbound tourism to the country. As a whole, this chapter contributes to an understanding of China’s tourism industry.
4.2 Tourism policy in China since 1919: principal developments
It is generally accepted that, until relatively recently, socio-political instability in China had an inevitable negative impact of the development of the country’s tourism (Mintel Report 2010; Wen & Tisdell 2001: 15-18; Zhang 2003; Zhang, Pine & Lam 2005: 14- 17). Nevertheless, over the last century the Chinese government has increasingly recognized the importance of the tourism sector and, as a consequence, has undertaken to develop it as pillar of the country’s economy. For convenience and brevity within the context of this thesis, the main developments in Chinese tourism policy since 1920 are summarized in Table 4.1 overleaf. More information related to China travel services can be found in Section 4.5.2.
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Table 4.1: Developments in tourism policy in China since 1920 Period Main changes of tourism policy
1921 – 1948 Following the establishment of the Republic of China by Dr. Sun Yat-sen, the political situation became relatively stable and the tourism industry was brought on the national development agenda.
China Travel Service was founded in 1923 and became a landmark of China’s travel business.
From late 1930s, following the commencement of the Second World War and the subsequent civil war, tourism collapsed until the founding of the People’s Republic of China in 1949.
1949 – 1976 The travel business was treated as a form of special political activity.
In 1953, the Beijing Overseas Chinese Travel Service was set up to receive the overseas Chinese who came back to the mainland to meet their relatives or friends, or to tour the country.
China International Travel Service was founded in 1954 to provide services only for foreigners with special permission to visit the country. Tourism in China at that time, therefore, was essentially a ‘diplomatic activity’, serving political rather than economic goals. And there is no doubt that domestic tourism and outbound travel occurred only on a very limited basis. In the early 1960s, China was ready to increase its tourism to
a larger scale.
In order to better develop tourism, the Overseas Chinese Travel Service was set up in 1963, and the China Bureau of Travel and Tourism, directly under the State Council, was established a year later, in 1964.
With the start of the Cultural Revolution in 1966, China’s tourism was hit heavily again. Further development of the sector was until 1971, when China resumed exchanges in the field of tourism with Romania, Yugoslavia and other East European countries, but the number of foreign tourists was limited.
In 1974, the China Travel Service, with its head office in Beijing, replaced the General Overseas Chinese Travel Service and took responsibility for organizing overseas Chinese, compatriots from Hong Kong, Macao and Taiwan, and other foreigners with Chinese origins to visit the mainland of China. During this period, tourism developed slowly and could not be considered as an industry or as an economic activity.
1978 1978 is considered to be a year of great significance for China. Economic reconstruction and the Open Door Policy brought China’s tourism alive, so that the development of tourism flourished more than ever.
In this year, the China Bureau of Travel and Tourism was upgraded to the State General Administration for Travel and Tourism, which became a government organization at ministerial level.
Also, the number of places open to international visitors was increased to 122. This provided foreigners with more opportunities for a better understanding of China. For example, reflecting the country’s China’s rich tourist resources, a diversity of tour programmes was offered to international visitors, including cruising on the Three Gorges
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of the Yangtze, cruising on the Yellow River, the Silk Road tour, and so forth.
Relations between the Chinese and peoples of other countries were further enhanced. It was only from this year that tourism became seen as a distinctive economic sphere and managed / promoted as an area of economic activity, due to the rapid increase of the number of international visitors to China.
1982 The China Bureau of Travel and Tourism, previously established in 1964, was re-named China National Tourism Administration (CNTA) in 1982. It is the agency in charge of tourism and is directly affiliated to the State Council.
1986 – 1991 Tourism in China made a significant contribution to the national economy. With the deepening reform, tourism, as a part of service industries, enjoyed priority in the national industry policy.
At that time, many projects invested in and supported by the state and local governments, were undertaken for renovation and development, such as scenic areas along the Three Gorges section of the Yangtze River, a Song Dynasty Street in Kaifeng, and so on. Also, tourist facilities in many areas were further improved.
1992 – 1998 China’s tourism market developed rapidly, as the country pushed ahead in implementing capitalist-led reform.
With the return of Hong Kong in 1997 and Macao in 1998, the development of China’s inbound tourism was further consolidated.
The increase of foreign investments brought many opportunities to China, not only in commercial trade but also in the tourism industry. For example, Wen & Tisdell (2001: 7- 8) claim that ‘economic growth in China has definitely stimulated the development of its tourism industry in recent decades, and China’s tourism industry has benefited from world economic growth, and particularly substantial economic growth in East Asia’. The tourism industry was identified as a new growth point of the national economy in the years to come.
By the end of 1998, the governments of many municipalities, provinces, and autonomous regions in China had established the tourism industry as one of pillar industries in their locality. Entering the 21st
century
At the turn of new century, China has produced its strategic plan for tourism development for the next 20 years, the overall goal being to become the world’s leading tourism destination. An increasing diversity of government policies and activities advance the development of China’s tourism. Some examples are as follows:
In the national campaign for the development of western China proposed at the end of the year 2000, tourism has been made a priority among industrial sectors.
In 2001, Premier Zhu Rongji, in his report on the ‘10th
Five- Year Plan for the National Economy and Social Development’, stressed that the development of the service sector should be sped up, and more effort should be given to the service industries directly related to resident consumption such as real estate, travel and tourism, catering, entertainment and recreation, and health. Subsequently, more preferential government policies have been worked out to support tourism development at both central and local levels, including the increase of public holidays, which not only contributes to the development of domestic tourism, but also stimulates domestic consumption.
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China’s entry into the World Trade Organization in 2001 has provided more opportunities for its tourism development, particularly for its inbound tourism development.
CNTA implemented a number of new regulations to support the further development of tourism in 2009: Regulation on Travel Agencies, Regulation on Tour Guides, and Measures for Administration of Outbound Tours by Chinese Citizens. On 4th June 2013, the Tourism Law of the People’s Republic
of China was formally established.
Source: Gao & Zhang (1983), Hotel Mule Report (2011), Li (1998: 84-96), Mintel
(2010), Wen & Tisdell (2001: 15-18), Zhang (2003), and Zhang, Pine & Lam (2005: 14-17)
However, although significant advances have been made in the promotion and development of tourism in China, as summarized above in Table 4.1, the legal framework to support or regulate tourism remains limited (Li 2011). Indeed, although some policies referred to above have been established in order to adjust tourism structures, regulate tourism markets, solve tourism conflicts, and to protect rights of tourists, they have failed to solve many ‘deep-rooted problems’ regarding the travel sector. ‘The absence of basic tourism law makes the legislation of tourism in China in a rudderless state’ (Li 2011) and has resulted in a chain of reactions. For example, as Li (2011) states, in the absence of basic tourism laws, local tourism development and policy-making activities have no principles to follow, resulting in disorder in the tourism market. In addition, the lack of a unified service standard may greatly influence tourists’ travel experience.
Fortunately, however, and after a long wait, in 2012 the Chinese government finally decided to develop a comprehensive and systematic legal framework to promote and regulate the development of China’s booming travel industry. It was reported that on 27th August 2012 Chinese legislators started the first round of deliberations on a draft law for tourism (Xinhua News 2012). The draft includes not only operating standards for travel-related businesses and scenic areas, but also a clause prohibiting travel agencies from forcing tourists to purchase goods. Through the establishment of the tourism law, China aims to regulate the country’s tourism sector, including the improvement of the quality of travel services, to foster its healthy and sustainable development and to transform it into a pillar of economic growth.
On 4th June 2013, the Tourism Law of the People’s Republic of China was formally
published on the China National Tourism Administration’s website
(http://en.cnta.gov.cn/html/2013-6/2013-6-4-10-1-12844.html), finally providing China with its own tourism law to secure the healthy development of its tourism industry.