Tourism is a relatively recent economic activity in Mainland China which has been developed rapidly over the past several years. Yet, compared to many other nations, the Mainland Chinese tourist industry is relatively backward. Largely due to inexperience in the promotion of tourism, Mainland China is today beset by numerous problems. This paper is an attempt to analyze the present situation and future prospects of tourism from an economic perspective.
By 1980, Mainland China had opened more than 120 places of scenic and historic interest to tourists. Moreover, new types of tours were offered to visitors to increase the flow of tourists. This changed situation reflected the primary goal of tourism promotion, viz to augment foreign exchange earnings to facilitate the Four Modernizations. In the past three years, ideology and policy concerning tourism has changed. The government has receded from attempts to use tourism for political considerations alone and instead now views it as a means to increase state income.
Since much energy has been devoted to tourism in the past three years this study has focused on the economic considerations of changes that have occurred during this time. The major conclusions are as follows:
(1) The authorities have structured a large tourism industry on economic not political principles. Tourism has recently been incorporated into the State Economic Plan.
(2) Roughly 90% of the visitors to Mainland China were overseas Chinese, and compatriots of Hong Kong and Macao. These visitors were given special consideration in the forms of discounts and easier access to visas. Consequently, per capita tourism revenues derived from this group were lower than that derived from visitors of other nationalities. The last three years have witnessed much effort on the part of the overseas tourist bureau to enhance the volume of foreign visitors.
(3) Opening the gates to foreign tourists has created employment opportunities, in the construction, transportation, and printing industries.
(4) The development of a tourist sector is not only dependent upon the volume of comfortable, sanitary living quarters. Service, quality and price are also important. At present, Mainland China’s tourist industry suffers from hotel shortages, deficient service and high prices. These remain the prominent obstacles to tourism improvement although much attention and effort has been devoted to them in recent years.
(5) Cultural similarities and close physical proximity have given rise to tourism competition between the Republic of China and the Mainland.
