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The role of local government and the private sector in China's tourism industry

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  • Wang, Caiping
  • Xu, Honggang

Abstract

For many less-developed regions in China, cultural and natural attractions are often used by local governments as regional economic drivers. However, the expectation is that income generated from the direct use of culture and nature will only provide the initial round of working capital to facilitate development of other industrial sectors. One strategy in recent years is to separate government from business operations in these attractions to improve the economic performance of businesses and better conserve cultural and natural resources. This paper examines the impact of these policies on resource-dependent tourism companies (RDTCs) for the period 2003–2012. Data on economic performance are derived from listed companies. It is shown that RDTCs have better performance than other tourism sectors because of their monopoly status on high-quality natural and cultural resources. Yet local governments still have a role in tourism operation. Their involvement tends to lead to the reduction of the economic effects of RDTCs and results in discernible overcrowding at sites, thus resulting in negative ecological consequences. The implications for policy and companies are discussed.

Suggested Citation

  • Wang, Caiping & Xu, Honggang, 2014. "The role of local government and the private sector in China's tourism industry," Tourism Management, Elsevier, vol. 45(C), pages 95-105.
    • Handle: RePEc:eee:touman:v:45:y:2014:i:c:p:95-105
    DOI: 10.1016/j.tourman.2014.03.008
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    2. Surya Bintarti & Mohammad Hatta Fahamsyah, 2018. "Improving Tourism Quality by Islamic Finance," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 393-401.
    3. Hung Wan Kot & Ming-Hsiang Chen & Ching-Hui (Joan) Su & Yu-Xia Lin, 2024. "Tang poetry and tourism: Cultural effects after 1000 years," Tourism Economics, , vol. 30(1), pages 152-173, February.
    4. Chien Mu Yeh, 2020. "The influence of foreign institutional investors, institutional directors, and the share pledge ratio of directors on financial performance of tourism firms," Tourism Economics, , vol. 26(1), pages 179-201, February.
    5. Yu, Xiaojuan & Xu, Honggang, 2016. "Ancient poetry in contemporary Chinese tourism," Tourism Management, Elsevier, vol. 54(C), pages 393-403.
    6. Sun, Jiuxia & Ling, Ling & Huang, Zhuowei (Joy), 2020. "Tourism migrant workers: The internal integration from urban to rural destinations," Annals of Tourism Research, Elsevier, vol. 84(C).
    7. Hossein Komasi & Sarfaraz Hashemkhani Zolfani & Fausto Cavallaro, 2022. "The COVID-19 Pandemic and Nature-Based Tourism, Scenario Planning Approach (Case Study of Nature-Based Tourism in Iran)," Sustainability, MDPI, vol. 14(7), pages 1-13, March.
    8. C. Pons-Morera & L. Canós-Darós & I. Gil-Pechuan, 2018. "A model of collaborative innovation between local government and tourism operators," Service Business, Springer;Pan-Pacific Business Association, vol. 12(1), pages 143-168, March.

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