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Tourism Management xxx (2016) 1e11

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Tourism Management
journal homepage: www.elsevier.com/locate/tourman

The historical evolution of China's tourism development policies


(1949e2013) e A quantitative research approach*
Xiaoyun Tang
China Tourism Academy, Beijing 100005, China

h i g h l i g h t s

 Traces China's tourism policies from 1949 to 2013.


 Identifies themes based on analysis of 378 major tourism policies.
 Confirms the role of the Chinese Government as determinant of the country's tourism policies.
 Indicates how tourism policies change to address then current economic and social problems.
 Highlights the current stresses of changing to market led systems under delegated government controls.

a r t i c l e i n f o a b s t r a c t

Article history: Starting from the multi-dimensional analysis of the 379 tourism policy documents issued by Central
Received 7 March 2016 Government and related departments and ministries from 1949 to 2013, this article analyzes the evo-
Accepted 7 March 2016 lution of China's tourism development policies since the founding of China using a perspective. The
Available online xxx
research results show that (1) Tourism policy in China has evolved from being based on the adminis-
trative allocation of resources to a market-based allocation of resources constrained by administrative
Keywords:
powers. (2) The targets for tourism policy have always been developed with the strategic objectives of
Tourism policies
national economic and social development in mind. These can be divided into four stages: servicing
Evolution
China
foreign affairs, developing the business economy, providing a new growth point in the economy, and
Quantitative research becoming a national strategic pillar industry. (3) Tourism policy is mainly used for micro-supervision.
Tourism policy formulation lacks the ability to macro-control the factors of production such as capital,
land, technology and talent. (4) Increasing numbers of government departments are becoming involved
in formulating tourism policy, but policy efforts have become more stable. Recent studies suggest that
the effective operation of the tourism economy is highly dependent on the institutional arrangements
within the wider social economic system. Thus, when the Tourism Law was enacted, the development of
the Chinese tourism industry entered a new stage. In this new stage, technological advances, market
demand, and the competition and cooperative relationships among companies will jointly lead inno-
vation in the tourism industry. Innovation, such as new products and new business models will in turn be
the base for tourism industry development. Furthermore, industrial macroeconomic regulation and
public service will become the basic elements of government tourism management under the new law.
© 2016 Published by Elsevier Ltd.

1. Introduction is the industrial economy. The system, as a productive asset and


social capital, is a framework fully unleashing entrepreneurship in a
Effective operations under real conditions are dependent on the marketing process and is the basis of economic growth (Kasper,
complex and diversified system arrangements of human society, as Manfred, & Han, 2000). In practical industrial development, the
government usually stipulates policies with which to develop in-
dustries. The tourism industry is a service industry featuring mobile
*
This paper was originally published in Chinese as: TANG Xiaoyun. (2014). The space and involving multiple departments, and it is heavily
Evolution of chinese tourism development policies (1949e2013): A quantitative dependent on a system. China's tourism industry had first devel-
perspective. Tourism Tribune, 29(8), 15e27. oped in the 1920s and then served China's diplomatic policies with
E-mail address: xytang@cnta.gov.cn.

http://dx.doi.org/10.1016/j.tourman.2016.03.010
0261-5177/© 2016 Published by Elsevier Ltd.

Please cite this article in press as: Tang, X., The historical evolution of China's tourism development policies (1949e2013) e A quantitative
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2 X. Tang / Tourism Management xxx (2016) 1e11

the founding of the New China. It has subsequently turned into impacts. Baum (1994) pointed out that economic factors are the
industry of economic and social importance after China's reform main reasons as to why there are different tourism policies in
and opening-up. different countries after undertaking a comparative study of
This article takes the 379 policy papers issued by the govern- tourism policies in various countries. Wang and Ap (2013)
ment from 1949 to 2013 as the base from which to systematically concluded in their research that the successful implementation of
sort and analyze the quantity, structure, types and frameworks, policies in China is dependent on the capabilities and the holistic
targets and tools that explain the internal relationships between ability of the related departments of local tourism watchdogs.
China's tourism development and policy arrangements, and the Third, the outcomes of tourism policies have been studied. Liu,
evolution, implementation and development of those policies. Tzeng and Lee (2012) have suggested an evaluation method for
Semantically, the word “policies” means political strategy or tourism policies featuring a multi-target decision model that can be
tactics. In the practice of politics, “policy” bears three layers of used to identify the sequence of level and standards of tourism
meaning, the strategy, tactics and/or implementation. Secondly, policies. Meng, Siriwardanan and Pham (2013) applied CGE to
there is an implicit code of conduct, including guiding principles, evaluate the effectiveness of Singapore's tourism policies and found
routes, policies and criteria stipulated by the Party and the that reducing taxes on consumer expenditure can be very effective
administrative orders, decrees and statements, and thirdly, the final in promoting local tourism while subsidy policies can be regarded
political actions (Dai & Chen, 2003; Liu, 2005). The policies them- as being less effective.
selves possess the characteristics of various classifications, mis- From a Chinese perspective, research into tourism development
takes, procrastination and modes of expression reflecting power policies seem to be mainly about the promotion of international
structures and struggles. They reflect the organs of power through experiences, the design of policy frameworks and a qualitative
language and words, and the nature of it is the idealization, sub- analysis of policy performance. Such studies have the following
jectification and practice of class interests (Chen & Min, 2006). three features. First, the promotion and introduction of interna-
Relevant research practices (Liu & Sun, 2007; Li, Wu, Gao, & Zhang, tional experiences was regarded as a priority at the early stage of
2009; Yang, 2006) shall be referred to in this paper. As such the Chinese research. Cai Wankun (1984), Liu and Wu (1988), and Yang,
paper divides the range of policies into laws, administrative regu- Senlin and Dineen (1995) examined the tourism policies of Japan,
lations, rules of departments, the standard documents of the State U.S. and EU from these perspectives, and Wang (2002) looked to-
Council and standardized documents of various departments. ward the development of agriculture-based tourism in Australia
Research into national policies towards tourism development and Taiwan. Second, the focus of research was about observing
has long been conducted in the international arena, and can be evidences and designing framework for the shaping of tourism
divided into three categories. First, there are the policies and reg- policies, and Yang (2011) and Zhong (2009) provided a compre-
ulations promoting tourism development and the policies of re- hensive analysis of evolving Chinese tourism policies. The issues of
strictions on, and guidance of, tourism development. With regard tourism policies have been to the forefront of consideration in
to promoting policy research, Edgell (1983) analyzed the important China and have attracted significant attention as demonstrated by
role of the National Tourism Policy Act issued in US in 1981 that the work of Li (2004), Zhang (2005), Luo and Mao (2008) and Dai
promotes tourism against the background of international econ- and Xia (2009) with respect to outbound tourism policies, the
omy and trade. Similarly Soshiroda (2005) analyzed the evolution orientation of policies for the general public, tourism trade policies
of Japanese tourism policies from 1859 to 2003 and their regulating and tourism-related employment. Third, a qualitative means of
role during a period of recession. With regard to research into research has been mainly adopted. Liu, Wu and Liao (2007) eval-
standards and conservation policies, Krippendorf (1982) evaluated uated the nature of the design defects of Golden Week from the
the risks of an unrestricted growth of tourism against the back- perspective of strategic environment assessment, and Huang and
ground of mass travel and suggested regulatory policies for the Yuan (2008) discussed the performance of agricultural policies by
corresponding economic and technological sectors. Go € ssling examining rural tourism policies. Shu (2011) evaluated the per-
(2013), for his part, estimated energy consumption and the emis- formance of policies adopted by Guizhou Province at difference
sion of green-house gases resulting from tourism in many countries stages And Peng and Hu (2008) suggested establishing a perfor-
and believes that the consumption and intensity of greenhouse gas mance evaluation system for tourism policies given that at that
emissions have been seriously underestimated, thus suggesting a time there were no similar quantitative evaluations of tourism
need for national legislation. With regard to research into the di- policies. Zheng, Mi and Wen (2013) also pointed out that, in the
rection and development of tourism policy, Smyth (1986) provided process of stipulating tourism policies, there remained little if any
the example of Northern Ireland to discuss tax preferences and research about the prediction effects of carrying out policies.
lowering tax thresholds while employment rates remained high, Therefore, they suggested the implementation of quantitative
fully confirming the contribution of tourism to employment. performance prediction and evaluation. In general, there still re-
Shafer and Choi (2006) also conducted research into govern- mains a huge space for expanding the range and quantitative na-
ment policies in tourism planning and coordination, and the role of ture of tourism despite the achievements that have been made in
the dissemination of scientific knowledge, cooperation and infor- tourism policy research.
mation management between relevant parties with common in-
terests. In a European context Minnaert, Maitland, and Miller 2. Methods and data sources
(2009) suggested that social tourism might be an effective social
policy to improve the quality of life for low-income Europeans. The quantitative analysis of policy has long been a difficult topic.
Second, the stipulation, fulfillment and implementation of Some fundamental processes have been adopted in public policy
tourism-related policies have been studied. Ritchie (1998) believes analysis and policy documents since the founding of New China.
that any tourism policy should fully consider the ideas of com- These have been taken as examples for the analysis of tourism
munity residents to develop policies and schemes that are uni- development policies of China at different stages despite an
versally acceptable and sustainable. Akehurst, Bland, and Nevin inability of accessing many of the myriad of policy documents and
(1993) found in their research that European tourism policies all the various tourism development policies across the country.
sought to attract tourists with higher consuming capabilities, The process of research can include the following three steps. First,
thereby leading to improved product quality and reduce seasonal there is a need to identify the nature and quantity of documents

Please cite this article in press as: Tang, X., The historical evolution of China's tourism development policies (1949e2013) e A quantitative
research approach, Tourism Management (2016), http://dx.doi.org/10.1016/j.tourman.2016.03.010
X. Tang / Tourism Management xxx (2016) 1e11 3

required for analysis. Second, a chronological sequence is required declined. However, judging from the titles of sample policies, the
based on the year of publication. Third, the samples have to be documents related to professional agencies and employees in
categorized and analyzed, including quantity and structural anal- tourism, and the construction of a standardized management of
ysis of the policies based on policy targets and means of imple- tourism and tourism destinations and the formalization and easing
mentation, analysis of departments stipulating policies and policy of regulations relating to outbound tourism. The Methods on Man-
efforts etc. Fourth, the statistical results need to be summarized to agement of Outbound Travel by Chinese Citizens was published in
identify the evolutionary processes and the development of China's 2002. The “Eleventh Five Year Plan” period was a critical phase
tourism laws and policies since the founding of New China. featuring mass tourism, and the quantity of policies increased to 68,
These tourism development policy documents included the accounting for 17.9% of the total. Up until now, the quantity of such
tourism-related laws issued by the Standing Committee of the documents in the “Twelfth Five Year Plan” is not that large. How-
National People's Congress, tourism-related rules, regulations, de- ever, the significance of the documentation is quite high. The
cisions, methods, detailed rules and regulations, opinions, outlines Outline about Entertainment Tourism of Chinese People and Tourism
and notices issued by the State Council and regulations, decisions, Law of the People's Republic of China were both promulgated in 2013,
methods, detailed rules and regulations, opinions, notices, an- thus upgrading the tourism industry to a quality-based develop-
nouncements and outlines issued by National Tourism Adminis- ment phase. In conclusion, the tourism policies and implications for
tration and related departments and ministries. The selected industrial practice are closely linked in terms of quantity.
samples of policy documents can be divided into three types: first,
special tourism policies, including comprehensive policies per-
3.1.2. Structures of tourism development policies
taining solely to tourism, wider industry policies and other policies
The content of policy documents about policy structures of
related to various agencies of tourism such as travel agencies, res-
tourism development usually reflects the fields of administration
taurants and scenic spots; second, policies closely related to
by governments. The research referred to the classification frame-
tourism activities, including immigration policy, the vacation sys-
work1 of Tourism Policies and Regulations and Collection of Laws on
tem and policies issued by aviation and railway departments, since
China Tourism by Wei Xiao'an and Zeng Bowei, classifying the policy
all these policies exert significant influence over tourism. Third,
samples into tourism market policies, industrial factors policies and
policies related to tourism in the service and other industries. The
comprehensive policies. The market-related policies are divided
time span for selecting samples was from 1949 when New China
into inbound and outbound tourism policies and domestic tourism
was established until the end of July of 2013. All the samples were
policies. The policies of industrial factors can be divided into pol-
selected from the website of National Tourism Administration,
icies about travel agencies and guides, tourism restaurants, tourism
Collection of Laws on China Tourism edited by the Department of
attractions and tourist destinations, tourism traffic and compre-
Policies and Laws of National Tourism Administration, the Policies
hensive factors. The comprehensive policies can be divided into
and Laws of Tourism edited by Wei Xiao'an and Zeng Bowei, the
public service policies of tourism, tourism law and tourism industry
database of China's laws and regulations on the Peoples' Network
policies and other policies. From Fig. 1(b), one can see that policies
and state laws and regulations database of the National Information
related to travel agencies and guides accounted for 82 out of the
Center. For the study 379 sample policy documents were obtained
sample of 379 policy statements (21.6% of the total); with a further
and were categorized with intervals of roughly 5 years.
58 inbound tourism policy documents (15.3% of total) and 56
relating to outbound tourism policies (14.8% of total). In contrast,
3. Statistical analysis of tourism development policies
the special market policies for domestic tourism and specific pol-
icies for tourism traffic, catering and destinations were quite rare.
3.1. Amounts and structure of tourism development policies
There were only 6 special policies about domestic tourism, ac-
counting for 1.6% of total; 11 tourism traffic policies (2.9% of total)
3.1.1. Quantity of tourism development policies
and 9 tourist destination policies (2.4% of total). All these data
As noted above, 379 state-level policy documents closely related
reflect two questions. First, China's tourism policies enjoy a
to tourism development from 1949 to the end of July of 2013 were
prominent status in Chinese policy creation, and travel agencies
analyzed. Fig. 1(a) shows that tourism policies in the first 30 years
and guides and inbound and outbound tourism serve as key con-
after 1949 were few in number, and even in the 1960s and 1970s
cerns of the administration in terms of their nature and markets.
few such documents were found. From 1979 on the quantity of
Second, there were too arguably many policy documents related to
tourism documents significantly. The “Sixth Five Year Plan” period
travel agencies and tourist guides, and overall tourism policy suf-
witnessed the start of China's tourism, and 15 tourism documents
fered from an imbalance of structure but possibly was reflecting
were published in those 5 years, including the Decision on
concerns for consumer protection. With regard to market place
Improving Tourism issued by the State Council (1981). The “Seventh
policies, more emphasis was put on international than domestic
Five Year Plan” period witnessed the fastest growth of various
travel. And in terms of industrial structure, greater importance was
policies, increasing some 3 times compared with the previous five
attached to travel agencies than other sectors or industries pos-
years. During this period, large amounts of policies guiding hotels
sessing tourism features. Of course, all these system arrangements
accommodating foreign guests, travel agencies and guides were
are closely linked to policy targets at different stages in China's
stipulated. The “Eighth Five Year Plan” period witnessed the real
development. The study therefore divided the 379 policy
start of China's domestic tourism industry, with the fast develop-
ment of various tourism policies (95 policies in number) accounting
for 25.0% of the total quantity of policy documents. During this 1
There are many different classification methods for policies. Gustafsson divided
period a large number of comprehensive policies about tourism policies into distribution policies, monopolized policies, controlled policies and re-
development were promulgated, including the Decision of the State distribution policies from the angle of implementation of policies. However,
Council on Accelerating the Development of Tertiary Industry (1992), considering the practice of policies, they can be divided into general, basic, detailed,
and the Notice about Active Development of Domestic Tourism In- macro and micro, guiding and instructive policies. In addition, due to the
comprehensiveness and applicability of the tourism industry, from the angle of
dustry issued by the National Tourism Administration as trans- content and range of policies based on the classification methods of tourism
mitted by General Office of the State Council (1993). In the “Ninth administrative departments and related scholars. It is possible to discern a classi-
and Tenth Five Year Plan” periods, the total number of policies fication of market, industrial factor and comprehensive policies.

Please cite this article in press as: Tang, X., The historical evolution of China's tourism development policies (1949e2013) e A quantitative
research approach, Tourism Management (2016), http://dx.doi.org/10.1016/j.tourman.2016.03.010
4 X. Tang / Tourism Management xxx (2016) 1e11

Fig. 1. The number and structural of China's tourism development policy during 1949e2013.

Table 1
The number of different types of China's tourism policy during 1949e2013.

The first level of classification The second level of classification Quantity The first level of classification The second level of classification Quantity

NPC's policy documents Laws 4 Policy document of Ministries and commissions Rules 16
Policy documents of State Council Rules 6 Decisions 9
Provisions 2 Methods 28
Decisions 6 Tentative Methods/Rules 39
Methods 4 Opinions 29
Detailed Rules Tentative 1 Detailed Rules 12
Methods/Rules 4 Notices 150
Opinions 2 Others 57
Outlines 1 Total 379
Notices 9

documents in terms of sources and importance as shown in Table 1.


Based on a classification of policy documents by issuing de-
2 partments, NPC and its standing committee have issued four
The four specific laws are: the Law of the People's Republic of China on the
Control of the Exit and Entry of Citizens (1985, and subsequently abolished), the tourism-related laws2, accounting for 1.1% of the total. The
Law of the People's Republic of China on the Control of the Exit and Entry of administrative laws and regulations and various standards issued
Overseas Citizens (1985, also subsequently abolished), the Exit and Entry Admin- by the State Council reached 35 in number, accounting for 9.2% of
istration Law of the People's Republic of China (2012) and the Tourism Law of
the total. Various departments and ministries and their directly
People's Republic of China (2013).

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affiliated organizations have issued 340 policies, accounting for as possessing four targets: First, the foreign exchange activities
89.7% of the total. Based on the classification of the nature of policy before reform and opening up. In this phase, the tourism policies
documents, NPC and its standing committee have issued four are mainly about standardizing and promoting the domestic travel
tourism-related laws, accounting for 1.1% of the total. The admin- of foreign immigrants and the exit and entry of foreigners and to
istrative laws and regulations in forms of rules, provisions, de- address failure in meeting economic targets. The policy documents
cisions, methods, details and tentative methods/rules, and the rules include the Temporal Methods for Registration of Foreign Settlers and
and details published by departments and ministries approved by Issuance of Residence Certificate (1954) and the Rules about Man-
the State Council before the stipulation of Legislative Law3, totaled agement of Exit and Entry of Foreigners and Residence and Travel
32, accounting for 8.4% of the total. The State Council and its affil- (1964) etc. Second, China strove to earn foreign exchanges through
iated organizations have stipulated 59 department-level rules in international tourism in the first 15 years after reform and opening
forms of orders, methods, instructions and rules, accounting for up. The National Tourism Work Conference in 1981 determined
15.6% of the total. The State Council issued 18 normative documents that “the tourism is a comprehensive economic endeavor and is a
in forms of opinions, outline, notice and replies, accounting for 4.7% driving force for development”. The economic targets of tourism
of the total. The State Council and its affiliated organizations issued policies gradually emerged at that time. Later, large number of
266 normative documents in forms of opinions, notices and replies, policies promoting tourism through establishing facilities for exit
accounting for 70.2% of all documents, as shown in Fig. 1(d). The and entry visas, fundamental reception and travel service were
longitudinal analysis shows the different focus of policies at established. The Law of the People's Republic of China on the Control
different times. As shown in Fig. 1(c), the “Eighth Five Year Plan” of the Exit and Entry of Overseas Citizens (1985, abolished) was
period witnessed the most normative documents of ministries and stipulated and issued at that time. Third, by taking advantage of the
commissions, and the “Ninth Five Year Plan”, “Tenth Five Year Plan” its economic strength, domestic tourism was recognized for its
and “Eleventh Five Year Plan” period witnessed more department- ability to help boost internal demand for goods and services from
level rules. In the “Twelfth Five Year Plan” period, the level of policy the middle and latter part of 1990s to the first ten years of the 21st
documents was rather high and proportion of normative docu- century. If the middle and latter part of 1990s was prelude to the
ments related to laws issued by the State Council was large. In growth of domestic tourism, the early 21st century witnessed that
general, most of China's tourism policies are of a normative nature growth as numbers of tourist trips rapidly grew to about 4 billion by
with relatively less regulatory requirements. After the reform and 2015. From the Notices about Opinions of Actively Developing Do-
opening up, the quantity of the State Council's administrative rules mestic Tourism Industry by National Tourism Administration Trans-
and normative documents remained rather stable, but those mitted by General Office of the State Council (1993), a series of
relating to the departmental rules of various ministries increased policies have been put forward, including the Decision of the State
rapidly from the 1990s, and the competent departments came to Council on Amending the Regulation on Public Holidays for National
exert greater influence over the development of tourism. Annual Festivals and Memorial Days (the first amendment) (1999),
the Notice about Opinions of Further Developing Holiday Tourism by
3.2. Targets and policy tools of tourism policies National Tourism Administration Transmitted by General Office of the
State Council (2000), the Notice about Accelerating Tourism Devel-
3.2.1. Targets of tourism policies opment by the State Council (2001) and the Opinions of the State
Generally speaking, the formation of public tourism policies Council on Accelerating the Development of the Service Industry
results from two factors, first, the level of evolution of the tourism (2007). All these policies are based on the strategic targets to “build
industry, and second, the r targets of government (Su, 2011). Gov- the world's leading tourism power and to foster newly-emerging
ernment targets usually refer to an action for establishing related pillars”. Until 2008, the tourism development policies have shif-
public policies and their purposes, and the standards and effects to ted to a thinking of “vigorously developing domestic tourism,
be achieved. According to different classification methods, there are actively developing inbound tourism and orderly developing
general and specific targets, longer-term and short-term targets, outbound tourism”. The dominant power of domestic tourism
political governance and management targets, economic targets, market is maintained, and the function of tourism to drive domestic
cultural and social targets. The targets of government policies are demand is confirmed. Fourth, regarding the “Twelfth Five Year
usually reflected in terms of the quantity, structure and types of Plan” as a starting point, the tourism industry takes a holistic view
policies. of the economy and society. By the end of 2009, the Opinions on
While analyzing the core policy documents and tourism policy Accelerating the Development of Tourism Industry issued by the State
samples, the tourism policies in China can be roughly summarized Council designated the tourism industry as “the strategic pillar
industry and the modern service industry satisfied by the mass”,
and the tourism industry started to bear economic and social
3
Administrative laws and regulations usually include rules, methods, enforce- functions. In 2013, The Outline for National Tourism and Leisure, and
ment regulations and stipulations. According to Article 61 of the Legislation Law, the Tourism Law were stipulated, the rights of free travel by citizens
the administrative laws and regulations shall be released after the Premier signs the were fully respected and the tourism industry was given enough
decree of the State Council and the department regulations shall be released after
chief officer of the department signs orders. On May 18th of 2004, the Summary of
attention with regard to its functions on improving livelihood,
the Symposium on Issues Concerning Applicable Legal Norms for the Trial of promoting culture and education, and the social functions of
Administrative Cases by the Supreme People's Court (Legal [2004] No.96) clearly tourism became ever more prominent.
says that there are three types of effective administrative laws considering the
evolution of legislative procedure of New China, first, the administrative laws and
3.2.2. Tourism policy tools
regulations stipulated and issued by the State Council, second, the administrative
laws and regulations approved by the State Council and issued by departments of The policy tools are a major means of realizing policy targets.
the State Council in accordance with the procedures stipulated according to the According to Rothwell and Zegveld (1985), the fundamental policy
existing administrative laws and regulations before the implementation of the tools are divided into supply, environment and demand. The
Legislation Law. However, after the implementation of the Legislation Law, the supply-based policy tools are divided into scientific and techno-
normative documents approved by the State Council and issued by departments of
the State Council are no longer administrative laws and regulations, third, other
logical information support, infrastructure construction and capital
administrative laws and regulations determined by the State Council when sorting investment etc. Environmentally-based policy tools can be divided
out administrative laws and regulations. into target planning, financial support, tax preferences, and legal

Please cite this article in press as: Tang, X., The historical evolution of China's tourism development policies (1949e2013) e A quantitative
research approach, Tourism Management (2016), http://dx.doi.org/10.1016/j.tourman.2016.03.010
6 X. Tang / Tourism Management xxx (2016) 1e11

and regulatory controls. The demand-based policy tools include department regulations whose power is stronger than other
governmental purchases, service outsourcing and trade manage- normative documents. However, considering the subject of stipu-
ment. Some comprehensive policy documents usually include lating and issuing policies, the administrative normative docu-
multiple policy tools. Therefore, this study classified the types of ments stipulated by the State Council are superior to department
tools based on the main contents of policy documents. At the same rules and local government regulations, and the courts can refer to
time, the vacation system and visa policies are independently sor- such rules in trials and yet never refer to administrative normative
ted out in environmentally-based policies according to features of documents. This is because the administrative laws and regulations
tourism industry. Judging from the statistics in Table 2, China's and rules fall within the domain of possessing legislative power
tourism policies are mainly environmentally based (40.1%), fol- within the Chinese system of law. The administrative normative
lowed by demand-based (18.2%) and supply-based policies (15.3%). documents do not fall within the same remit administrative
Through further analysis, one can observe the followings. First, the legislation. Consequently the implication of any administrative
supply-based policy tools are rare, and there are few supports normative documents is very much determined by contextual is-
arising from capital investment (1.1%), infrastructure construction sues specific to the set of circumstances being considered. Judging
(1.8%), and support in science, technology and information (3.2%). from the development of China's tourism industry, the adminis-
Policies relating to the enhancement of employee and managerial trative normative documents stipulated by the State Council enjoy
practices account for 9.2% of policy changes, and most are about more influence when compared with department level rules and
qualification tests for tourist guides, tourist industry certification regulations. Bearing the above factors in mind, the strength of
and tourist guide training, and at the same time, policies for various tourism policies is divided into 5 grades based on such levels as
technicians, business and management training and scientific and laws, administrative laws and regulations and administrative
research skills. The orientation such policies echoes the condition normative documents, department rules and department level
of China's tourism industry and its past deficiencies in infrastruc- administrative normative documents issued by the State Council,
ture and lack of tourism operational management innovative skills. and are thus ranked in descending order, namely:
Second, the environment-based policy tools mainly focus on laws
and regulatory controls, accounting for 27.4% of total, followed by 5 e Laws, the laws stipulated by NPC and its standing
visa policies (5.3%). Other tools, like target planning (2.9%), financial committee.
policies (1.3%) and taxation policies (2.1%) are rarely used. Visa 4 e Administrative Laws and Regulations, the generic term for
policies are the tools with most influential impact on international normative documents about exercising administrative power
tourism and have been commonly used in the development of and fulfilling the administrative duties stipulated by the State
China's tourism. However, in practice, the supply of current visa Council based on Constitutional laws and legal procedures,
policies remains generally deficient in meeting market demands for including rules, methods, details of implementation and pro-
international tourism. Third, the demand-orientation policy tools visions, which shall be issued in the forms of decrees by the
are mainly about foreign trade control, accounting for 18.2% of the State Council.
total, and other policy tools, like government purchasing and 3 e Administrative Normative Documents of the State Council,
outsourcing, are almost totally absent. Such control over foreign the normative documents issued by the State Council, including
trade is mainly focusing on international tourism, including control the decisions, orders, provisions, methods, details of imple-
over foreign exchanges during the period of the planned economy, mentation, opinions and notices with general binding effect.
price controls relevant to inbound tourism, the management of 2 e Department Rules, the orders, instructions and rules issued
receiving and paying foreign exchanges in inbound tourism and the by departments and affiliated organs of the State Council in the
management system for future international travel services and form of decrees of Ministries according to administrative laws
foreign trade operators. All these control policies played a critical and regulations, decisions and orders within the jurisdiction of
role in the past but are now gradually being eased and indeed the department.
abandoned. 1 e Department Administrative Normative Documents, the
decisions, orders, provisions, methods, details of implementa-
3.3. An analysis of the impact of tourism policies tion, opinions and notices with general binding effect issued by
departments and affiliated organs of the State Council.
3.3.1. Impacts of tourism policies
Generally speaking, the impact of policies reflects the level of The effective values for policies at different stages are then to be
implementation, and their legal and moral persuasive power. This aggregated based on results of various policies in each year and in
article mainly focuses on the quantitative analysis of the effec- different phases in accordance with descending score from 5 to 1
tiveness of the policies based on the significance of the policy- reflecting the above order as suggested by Sheng and Kong (2011):
issuing organs and the types of policies adopted. According to In the equation ‘i’ represents various stages determined in
related rules of the Legislation Law, the force of law is superior to research (roughly each five-year-period is a stage), and the range of
administrative rules. And the administrative rules are superior to i should be from 1949 to 2013; ‘N’ represents the quantity of

Table 2
The policy tool type of China's tourism development policy during 1949e2013.

Type Category Quantity Ratio Type Category Quantity Ratio

Supply-side PolicyHuman Resource Policy 35 9.2 Environment model policy Target Planning 1 2.9
Support in Science & Technology and Information 12 3.2 Financial Policy 5 1.3
Infrastructure Construction 7 1.8 Taxation Policy 8 2.1
Capital Investment 4 1.1 Laws and Regulations Control 104 27.4
Need-based policy Governmental Purchase 0 0.0 Vacation System 4 1.1
Service Outsourcing 0 0.0 Visa Policy 20 5.3
Foreign Trade Control 69 18.2 Others 104 27.4
Total 379 100

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X. Tang / Tourism Management xxx (2016) 1e11 7

tourism development policies stipulated in stage ‘i’; ‘j’ represents spirit of these two above documents, including for example the
number allocated to j policy stipulated in stage ‘i’; PGj represents Regulations of Annual Leave of Employees (2007) and the Rules of
the score gained in policy No. J; Pj represents the value of strength Travel Agencies (2009). At the same time, with the tourism industry
of policies No. J; and TPGi represents the overall strength of policies better integrated into the national economy, a demand emanated
in stage ‘i’. for competent tourism administrations to actively enhance the
supervision and provisions of services for the tourism industry.
3.3.2. Analysis of strength of tourism policies Therefore, it is suggested that these scores, though fluctuating quite
Based on the above equation, the tourism policies from founding a bit, basically echo the development of China's tourism industry.
of New China were analyzed with the results shown in Fig. 2(a). Through this approach it is also possible to estimate the effect of
Since the opening up and reform, the effectiveness of tourism individual pieces of legislation and regulations, and the implica-
policies has been polarized. On the one hand, there were have tions of the different stages. What might be termed the unit policy
fewer tourism development policies before the reform and opening strength value can be gauged by the dividing the policy scores in
up, and these are generally shown to have had little effect. Some different stages by the number of policies. As shown in Fig. 2(b), in
policies issued in this period are mainly about the management of the initial stage after the founding of the New China and the “Sixth
foreign affairs activities, and the exit and entry policies servicing Five Year Plan” period are two main periods for unit policy strength,
overseas Chinese and traffic and security. The highest value of with the former representing the start of the tourism industry and
policy strength these stages is scored at the value of 31. On the other latter representing the reform and opening up. Tourism develop-
hand, the quantity of policies after the reform and opening increase ment served as one of the starting points of the post-reform
in both number and effectiveness. Starting with the Decision of the economy. During the initial stage of the founding of New China,
State Council on Enhancing Tourism in 1981, the effectiveness of there were only a few tourism policies, but each had a significant
policy documents as measured on these scales kept increasing, impact indicating that China placed a high value on the capability of
with the peak level being in the “Eighth Five Year Plan” when it the tourism industry in dealing with foreign affairs. The “Sixth Five
reached 125. In the following 10 years, this figure declined, and Year Plan” period might be said to be the start of the tourism in-
another peak appeared in the “11th Five Year Plan” period and the dustry. Therefore, the State Council decided to enhance tourism and
policy score reached 103. The peak value is in consistent with the stipulated many important policy documents as the foundation of
policy targets to promote development of tourism industry in the the tourism industry and the creation of careers within that in-
“Eighth Five Year Plan” period, which was to foster new national dustry. These policy documents include Management Methods for
economic growth as the authorities sought to create economic Travel Vehicles and Ships (1982), the Law of the People's Republic of
growth through primary industry investment. In this period, many China on the Control of the Exit and Entry of Citizens (1985), the Law
state-level measures were taken to promote the development of of the People's Republic of China on the Control of the Exit and Entry of
tourism economy and a pro-tourism policy environment was Overseas Citizens (1985), Tentative Rules on Management of Scenic
fostered, including the Decisions of the State Council on Accelerating Spots (1985), and Tentative Rules on Management of Travel Agencies
the Development of Tertiary Industry (1992), Rules about Working (1985). In addition, from the “Seventh Five Year Plan” period, the
Hours of Employees by the State Council (1995) and other highly scores of unit policies at various stages has kept increasing, repre-
rated policies promoting domestic tourism. The subsequent peak in senting stable growth of the tourism industry. This upward trend
the policy score in the “11th Five Year Plan” period had much to do continues, predicting a future sound development.
with the comprehensive development of China's tourism industry
at that time and its recognition as an important component of the 3.4. Participants of tourism policy designs
national economy and policies favoring consumer led economic
growth. Opinions of the State Council on Accelerating the Develop- Tourism is a comprehensive industry covering many sectors and
ment of Service Industry (2007) and Opinions on Accelerating the fields, with multiple departments participating in formulating
Development of Tourism Industry (2009) were stipulated, and many development policies in the different periods. Fig. 3(a) shows the
policy documents have been subsequently announced to satisfy the involvement of such departments was rare before the reform and

Fig. 2. Policy efforts of tourism development in different periods.

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opening up. However, after reform and opening up, such activities and Macao Compatriots and Increasing National Foreign Exchange
increased year by year. As seen in Fig. 3, the first five years in the Earnings in 1963. Altogether, there were 8 departments participating
1960s witnessed a small peak due to the issuance of the Notice on in the formulation of this normative document, including Overseas
Promoting Tourism Businesses for Overseas Chinese and Hong Kong Chinese Affairs Commission, People's Bank of China, Ministry of

Fig. 3. Participating departments of tourism sector development policy at different stages.

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X. Tang / Tourism Management xxx (2016) 1e11 9

Communications, Ministry of Railways, Civil Aviation Administra- (1) Tourism policy in China has evolved from being based on the
tion of China, Ministry of Commerce, Ministry of Food and Ministry administrative allocation of resources into a market-based
of Foreign Trade, indicating the wide range of sectors involved in allocation of resources restrained by administrative powers.
international tourism. After the reform and opening up, the number
of participant departments reached a peak level in the “Eleventh The evolution of China's economic system is mainly driven by
Five Year Plan” period, totaling 17 participants in formulating government; hence the change in tourism policy evolved from being
tourism policies. This achievement arose from and contributed to based the administrative allocation of resources to a market-based
the comprehensive development of the tourism industry. one. The differences can be observed by analyzing the quantity
Judging from the numbers of policy stipulations and issuance, and structure of tourism development policies in different stages
the leading departments in this process included the State Council and by identifying the application of policy tools and differences of
and National Tourism Administration, and major participant de- policies over time. From the founding of New China to the end of
partments include Foreign Ministry, Ministry of Public Security, “Cultural Revolution”, the tourism industry had been constrained by
Ministry of Finance and Ministry of Commerce, involving 30 or the planned economy and endowed with the function of “expanding
more departments1 (Fig. 3(d)). As shown in Fig. 3(b), the number of political influences on international community”. Consequently
policy documents issued by a single department reached 332, ac- tourism policies were initially about the immigration of foreigners
counting for 87.6% of the total; the number for policy documents and services for overseas citizens. At the beginning of reform and
promulgated by two departments reached 35 (accounting for 9.2% opening up, the tourism industry was still a public service sector
of total); the number for policy documents issued by three de- even though its nature was getting clearer. Monopolization could
partments reached 4, (1.1%); and the number of documents issued still be seen in many areas and strict control was imposed on foreign
by three or more departments reached 8, (2.1%). In Fig. 3(c), the exchange currency. This is clear through many policy documents
major conduit for stipulating tourism policies was mainly provided issued in the same period, including Notice on Adjusting Charging
by the National Tourism Administration which issued 260 policy Standards on Comprehensive Service for Self-supporting Foreign Tour-
documents (68.6%); with the National Tourism Administration also ists (1979), Notice on Issuing Fundamental Requirements of Operating
providing 33 other documents of regulations etc. to account for 293 Tourism Restaurants (1982) and Tentative Rules about Price of Inter-
promulgations. What is worth mentioning is the number of policy national Tourism of China (1985). In the 1990s, China's market
documents not stipulated by National Tourism Administration economy was gradually established, the regulations imposed on
numbered 79, accounting for about a fifth of the total. Many of tourism became gradually eased and the monopolies (such as state
these latter documents comprised regulations about immigration, owned hotels) were broken up by privatization policies. The stipu-
visas, traffic and transportation, which are quite important for the lation and issuance of a series of documents further unleashed the
international and domestic tourism markets. One aspect of China's vitality of tourism and shifted the focus of tourism administrative
administrative system is that while tourism has impacts that fall management from administration-based control to standard su-
within the jurisdiction of many different departments, not all of pervision and service. These documents include Notice on Pricing
those departments may necessarily possess expertise in tourism at Management of International Tourism (1993), Notice on Name Man-
national or provincial levels. On the other hand, given its national agement after Company-based Restructuring of Travel Agencies (1994),
importance, the industry is increasingly attracting attention from Tentative Methods about Trial Operation of Sino-foreign Joint Venture
the different levels of government, especially given its role as Travel Agencies (1998) and Rules about Evaluation of Stars of Hotels for
complimenting government economic and social policies. Overseas Tourists in People's Republic of China (1998). In the 21st
In looking at these issues it needs to be noted that after the Century, the reform of “market-based allocation of resources” was
founding of the New China, the departmentalization of the State pushed further as governmental functions were transformed. The
Council and its ministries and departments directly affiliated to tourism administrative management gradually shifted to public
State Council changed, and the current names name of de- service and macro-regulation with the stipulation of a series of
partments and ministries are used in this paper. The policy docu- policy documents, including Opinions on Further Improving Public
ments issued by the State Development Planning Commission and Service in Tourism (2012), Opinions on Accelerating the Development of
State Administration of Commodity Prices were transferred to the Tourism Industry through Financial Support (2012), Tourism Law of the
National Development and Reform Commission and documents People's Republic of China (2013) and Outlines on Development of
issued previously by Ministry of Commerce and Ministry of Foreign Tourism Quality (2013e2020). The evolution of the tourism industry
Trade were transferred to the Ministry of Commerce due to the is a process of continuous market-based allocation of resources and
change of names and functions of departments and ministries. the liberation of productivity.

(2) The targets of tourism policies have always been consistent


with the strategic goals of national economic and social
4. Conclusion and prospects of research development

4.1. Conclusion of research China's tourism industry has had different tasks in different
times in the course of its development. All these different tasks
Tourism is an economically-focused service industry and has have helped formulate the different policies. The evolution of tar-
had different missions at different stages of China's economic and gets for tourism policies has always been consistent with the
social policies. After sorting the tourism policy documents issued strategic goals of national economic and social development, e.g.
over the past 60 or more years, many policy designs were not people-to-people diplomacy, foreign exchange activities, foreign
consecutive. Rather, they primarily reflected government concerns exchange earnings, pushing consumption, improving employment,
at different stages in the evolution of Chinese policies. Such stage- raising self-cultivation and servicing people's livelihood. Taking
focused arrangements nonetheless powerfully pushed forward the foreign affairs activities during the period of the planned economy
development and progress of tourism. At the same time, such ar- period as an example, the emotional appeal of entertainment in
rangements reflect a relatively conservative and complicated set of tourism for the capitalist class was not compliant with the spirit of
concerns by government. those times. However, the Chinese government needed people-to-

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people diplomacy more to “break the ice” of the then existing departments. Equally there are difficulties in dovetailing tourism as
diplomatic environment. Hence the tourism policies for promoting a strategic pillar and coordinating with many other government
inbound tourism stipulated at that period including Methods about departments to create the required synergy. There is also a tendency
Preferential Treatment of Traffic Charges of Self-support International to an overuse of regulation. Since the founding of New China, a total
Tourists (1958) and Rules of Management of Entry, Exit and Transit of of 104 policy documents related to tourism laws and regulations and
Foreigners (1964) satisfactorily fulfilled the mission of the times. administrative rules have been stipulated, accounting for 27.9% of all
The middle and latter part of 1990s to the first decade of 21st such laws and regulations. Many of the regulations and adminis-
Century also saw the Asian financial crisis and global financial trative rules about travel agencies and tourist guides impose re-
crisis. Therefore, promoting domestic demand became an impor- strictions and control onto industrial entities in a much too detailed
tant target for national economic development. The tourism in- manner, thus limiting their development. At the same time, the
dustry voluntarily shifted its strategic focus from putting a high demand-based policy tools have been applied too much in the arena
priority on attracting inbound tourists to developing domestic of foreign trade control. As international tourism intertwines with
tourism, in order to turn tourism into a new growth point of the diplomacy, foreign exchange and many other political and economic
national economy and a major force driving domestic consumer factors, it is easy for this part of tourism activity to be regarded as a
demand. And, the tourism policies and their goals stipulated in this target for control. In general, under the influence of various extra-
phase all focused on the promotion of domestic tourism. For neous factors, China's tourism has become heavily dependent on
example, many policies at that time have contributed to promoting micro-regulation and is less capable of responding to the macro-
domestic tourism services, including Decisions of the State Council regulation of production factors like capital, science and technol-
on Amending Public Holidays Festivals and Memorial Days (First ogy, and human resources, and it is unable to meet the current
Amendment) (1999), Notice about Opinions of Further Developing demands of tourism development in these areas of concern.
Holiday Tourism by National Tourism Administration Transmitted by Therefore, it still has ample room for improvement.
General Office of the State Council (2000) and Opinions of the State
Council on Accelerating the Development of Service Industry (2007). (4) More policy makers appear and the search for stability stable
All these policies have perfectly satisfied the strategic demand of
China towards tourism. Therefore, the national strategy of tourism Just as tourism is a comprehensive industry, involving cooper-
industry has remained unchanged over the past 60 years or more in ation and coordination with many other departments, so too the
that tourism policies have always been subordinated to the eco- departments involved are also evolving and developing their own
nomic and social management of the State. policies at various stages. Apart from the National Tourism
Administration, the Ministry of Security and Foreign Ministry also
(3) Policy tools are mainly used for micro-control to gradually played a role in tourism in the early stages when foreign exchange
realize public management and macro-regulation. and foreign affairs were a top priority. Later, as tourism developed
economically, more departments became involved, including
In fact, the change of policy tools represents the transformation Ministry of Housing Construction, State Administration of Industry
of governmental functions. As seen in the above statistics, the policy of Commerce, China Insurance Regulatory Commission and de-
tools for China's tourism development since the founding of China partments related to scenic spot construction and foreign exchange
have shifted their focus from simple administrative orders to and pricing management. Since the commencement of the 21st
guiding and instructing enterprises and standardizing markets Century, the developmental goals for tourism have become more
through stipulating national and industrial standards and bench- diversified as the tourism products integrate more with other in-
marking leading players, thus realizing the functional trans- dustries. The Ministry of Education, Civil Aviation Administration,
formation from governmental regulations, domination and Ministry of Agriculture, Ministry of Culture, People's Bank of China,
guidance to one of service and supervision. The range of adminis- Ministry of Finance and China Banking Regulatory Commission and
trative arrangements for the management of tourism has also China Securities Regulatory Commission also have a role in the
changed, from previously creating a uniformity of standards for staff stipulation of tourism development policies, creating a synergy to
and travel companies in the tourism industry to currently coordi- push forward tourism in China. This is indicative of the high value
nating industrial development and upholding the legitimate rights China places on tourism. Of course, such a trend also results in a
and interests of consumers and business operators in tourism in a more diversified, comprehensive and complicated situation,
holistic manner, and caring about and satisfying the demands of requiring more efforts within industrial coordination. Looking to
China's new mass tourism. However, more micro-controls have the future, strengthening macro supervision and regulation over
been imposed and the absence of macro-regulation has been quite tourism economy, fully giving play to markets in allocating re-
serious. First, the absence of macro-regulatory policies for other sources and governing tourism markets and utilizing tourism re-
industrial factors such as capital, skills and science and technology sources by laws shall be the foundation for many departments to
has led to uneven performances between companies and destina- promote and coordinate tourism. From a political view, in the
tions. Equally investment for public infrastructure facilities and 1990s, the dimensions tourism policies first fluctuated and then
scientific and technological system has been insufficient. Similarly stabilized. And the small peak of regulations and laws in 11th Five
the attention on the role of tourist guides has detracted attention Year Plan period was indicative of tourism entering into a period of
from the cultivation of skills in other aspects of the industry. Up until growth, and the forthcoming policies provided support for markets
now, policies regarding tourism technological innovation have been and helped tourism's comprehensive development.
largely absent, and the establishment of an innovative system lags
behind leading to deficiencies in the provision of information and a 4.2. Prospects of policies
loss of innovative capacity in the industry. Similarly it may be said
that the current macro-regulatory tools of finance and taxation are Various systematic arrangements have vigorously pushed
still far from benefiting tourism. Difficulties in financing and tourism forward. However, in fact, an imbalance of structure of
discrimination in taxation are still challenges that restrict the system design for tourism development still remains, and the envi-
development of tourism enterprises. In part this has something to ronment for such policies is still littered with restrictions. Even now,
do with the restricted functional abilities of the relevant tourism taxes for using water, electricity and gas for some tourism

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X. Tang / Tourism Management xxx (2016) 1e11 11

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