Summary of the Main Components of Recent Tourism Policy Plan
Today, tourism is the most important sector of the Chinese economy. It provides the population with a permanent place of work, and the state budget with a stable income without any negative effects on the ecological system of the country. In China, this industry is actively developing and the country’s leadership is doing everything in its power to facilitate the access of a potential tourist to the country.
China’s state policy is aimed at facilitating tourist access to the country in every possible way. The leadership of the eastern country understands that tourism makes it possible to multiply the gross domestic product much faster. It facilitates the external trade relations of the country’s business with foreign partners, annually attracts billions of dollars of investment in various sectors of the economy (World bank tourism indicators, 2022). Therefore, one of the components of the recent tourism policy plan is to increase the availability of visas to China for citizens of neighboring countries.
Simplification of the procedure for issuing visas to China has significantly increased the tourist flow to that country in a short time. To date, economists are of the opinion that China’s tourism business will actively develop. In ten years, the People’s Republic of China should take the first place in terms of the number of tourists entering from abroad (World tourism statistics, 2022). This growth rate of tourism to China is due not only to the simplification of the procedure for issuing visas to China, but also to the next component of the recent tourism policy plan.
This plan consists in providing interesting tourist routes around the country that would allow to expect the arrival of not only the same tourists every year, but also tourists of a new wave. China is the fourth largest state by area; this has allowed the country’s leadership to significantly increase sales of travel and tours in China over the past two years, thereby stabilizing the country’s tourism market as a whole (World tourism statistics, 2022). Due to this component of the recent tourism policy plan, the country’s tourism companies focus not only on external tourism, but also on internal tourism.
To date, China’s tourism market is growing day by day; in particular, the share of external tourism is increasing. At the same time, tourists come from all countries bordering China. The component of the recent tourism policy plan is primarily the sale of travel and tours to China for residents of Kazakhstan, India, Mongolia, North Korea, Vietnam and Tajikistan (World bank tourism indicators, 2022). As a rule, most tourist trips to China sooner or later turn into business trips, which is associated with the flourishing of small business in the country and the inviolability of private property.
Principles, Concepts & Theories of Public Policy for Tourism
The effective functioning of the tourism system is impossible without planning, regulation, coordination and control by the structures responsible for its development. This necessitates the development and implementation of a tourist policy based on the principles, concepts and theories of public policy for tourism. China’s tourism policy is formed and implemented at various levels: state, regional, and individual enterprises. There are some principles under the influence of which the tourism policy of China is formed.
These principles include the natural conditions of the country (climate, geographical location, relief, flora, fauna) that affect tourism policy depending on their rational use for tourism purposes. Moreover, the principles of China’s tourism policy consist of the assessment of transport conditions that determine the accessibility of objects of tourist interest, and social, economic and legal conditions for the development of tourism (Edgell and Swanson, 2018). At the same time, it should be noted that China’s tourism policy is not based solely on the principles of its internal conditions.
Since it is a country entering the international tourism market, it enters into a complex system of competitive relations with other states, as well as with entire world regions. The role and place of a particular state in the international tourism market depends on how well and effectively the tourism policy is built and implemented. The concepts of China’s tourism policy are related to the specific economic and historical conditions of the country’s development and the degree of maturity of the tourism industry itself.
The main concept is to meet the needs of tourists with the rational use of the existing tourist potential and ensuring sustainable tourism development. At the level of a tourist enterprise, the concepts of China’s tourism policy are focused on ensuring that the needs of tourists are met (Edgell and Swanson, 2018). These concepts also consist in increasing revenues and profits from the provision of tourist services, optimizing the quality of tourist services and developing new markets.
The implementation of tourism policy concepts requires coordination (vertical and horizontal) of the activities of various institutional units integrated into the tourism system. According to the theories of public policy for tourism, tourism policy is considered as an integral part of the general policy of the state in the application to tourism. China’s tourism activities should be carried out in close connection with the economy, social sphere, culture, ecology and other socially significant systems.
Analysis of the Instruments for Achieving Plan’s Aims
Since tourism in China is not only an economic, but also a social, cultural, environmental and political phenomenon, all of the above manifestations of tourism planning and the implementation of policy must be taken into account in its formation and positive development. According to the theory of promotion in the world tourism market, this activity includes a number of interrelated stages, which are carried out quite successfully in China. This is an assessment of the tourism potential of the country and the definition of its strengths and weaknesses.
Moreover, the necessary stages, effectively implemented in China, are the justification of the possible tourist image of the country from the perspective of target groups of tourists and the development of directions for the effective development and promotion of the image of China. The most important role of tourism planning and the implementation of policy is played by the theory of advertising and information activities and promotion of the country’s tourism opportunities. The incentive theory is designed to provide the state with leverage over the tourism system, which is achieved in one of three ways (Edgell and Swanson, 2018). The Chinese government successfully uses their combination and applies both by providing financial incentives, supporting research and innovation, and using marketing to attract tourists.
The incentive system in China is aimed at developing various components of the tourism industry, regions, products and individual services. Concepts marketing communication activities play a crucial role in shaping the promotion and positive development of tourism planning and the implementation of policy in China (Burns and Novelli, 2006). Most of its stages are successfully applied in the country. The country is preparing and publishing a basic package of information and advertising materials, including a single calendar of tourist events in the country.
In addition, a single national stand participates in the work of international tourist exhibitions and the formation of a network of national advertising and information tourist centers and representative offices abroad. Less successful in China are such stages of the concept of marketing communication activities as conducting advertising and propaganda campaigns in foreign media. It would also be possible to pay more attention to the organization of study trips to the country by representatives of foreign mass media, tourist enterprises and organizations.
However, the insufficient effectiveness of these concepts is compensated at other stages. In China, it is effective to create information databases of tourist accommodation, tourism industry enterprises, tours and routes around the country (Dredge and Jenkins, 2007). The Internet is also actively used to disseminate information about the tourist opportunities of the state and a unified tourist information network is being formed on the territory of China, taking into account its integration with similar international networks.
Analysis of Implementation and Evaluation Aspects of Plan
In China, the state is actively involved in the financing and creation of tourist infrastructure. The state participates in various areas of implementation of tourism policies and plans. First of all, there is the allocation of state subsidies for the implementation of individual tourism projects. The subsidy system is widely used in China, where the Ministry of Economy annually determines the total amount of assistance to investors (World bank tourism indicators, 2022). At the same time, investment priorities in tourism are determined, primarily the construction and modernization of high-class accommodation facilities and tourist complexes.
From the actions of the Chinese state within the framework of the implementation of tourism policies and plans, it is effective to provide loans to enterprises of the tourism industry at preferential interest rates. Thus, the system of loans is widely used, where they make up half of all investments in tourism and are issued at a rate of 6% for 15 years (OECD tourism statistics, 2022). At the same time, control over the project under which the loan is issued is carried out during the entire period of its implementation.
The implementation of the state guarantee in respect of loans and subsidies allocated by commercial banks for the development of tourism deserves high praise. However, the provision of tax benefits is not a very high-quality part of the implementation of tourism policies and plans in China. Insignificant tax benefits are provided by the state in respect of investments in facilities located in areas of national tourist interests. The income of tour operators is subject to corporate tax in full, and is not exempt from taxation.
Supporting the development of social tourism, ensuring its accessibility to socially vulnerable segments of the population is the next important function of the Chinese state in m. At the same time, extensive programs are being applied to provide travel opportunities for disabled people, children, youth and other categories of the population. The most striking example is the activity of the Chinese Tourist Savings Fund, which proclaims tourism as a vital attribute of a healthy society (OECD tourism statistics, 2022). The concept of social tourism in China has been implemented thanks to the most successful system of vacation checks.
Checks issued by a specially authorized body are purchased by wholesale buyers, mainly entrepreneurs. Then they are sold to the population at a significant discount. Checks are distributed free of charge among the least socially protected segments of the population. Checks can be used by any resident of China, but the amount of the discount is differentiated. Checks can only be used to pay for services related to tourism and cultural and entertainment events at enterprises of the social security system. These include accommodation facilities, transport organizations, catering companies, travel agencies, cultural and entertainment and sports and recreation institutions.
Tourism Plans Applied to International Tourism Destinations
A well-conducted tourism plans that can be applied to international tourism destinations requires a serious approach to planning. This means a systematic consideration of the fundamental issues and problems that may arise during the formation of a new product. It is necessary to develop a series of alternative measures used in case of unforeseen situations (Dredge and Jenkins, 2007). The whole planning process can be divided into several stages. The stages are arranged in the order of their implementation.
Some of the stages begin and end within a relatively short period of time, others are carried out simultaneously during the implementation of the plan. All of them are necessary for the organization and implementation of comprehensive effective measures for the development of international tourism in China and can be started within the first 12 months of the program (World bank tourism indicators, 2022). The first stage is the definition of a tourist product. Quite often, deciding what exactly will be sold to potential tourists becomes the most difficult task among all the problems associated with the development of international tourism in China.
The second stage of tourism plans that can be applied to international tourism destinations is the inventory of resources. This stage involves the creation of a catalog of resources available to foreign tourists inside China. Such a catalog includes a list of services that are currently provided in the territory, as well as those that are expected to be implemented within the next three years (World bank tourism indicators, 2022). The information that should be included in the catalog usually includes information about such objects of increased tourist demand.
The third stage is the analysis of the international market. It is necessary to pay attention to its three main elements. Among them are consumers of tourist services, agents for the promotion of tourist services and suppliers of tourist services. The fourth stage is devoted to establishing international contacts. At this stage, it is necessary to determine whether the advertised tourist product is important for people outside of China who will actually sell it. It is necessary to find out whether local resources are competitive compared to comparable tourist products on the same market offered by other countries, and where it is best to offer them (Burns and Novelli, 2006). Then the most suitable target countries and segments of the international market for the new international tourism program should be determined.
Main Aims of the Plan
The first stage of the plan is aimed at promoting Chinese attractors on the international market. The tourist product must reliably reflect the state of the attraction or other tourist object, otherwise it may lead to a decrease in the consumer popularity of the region. The choice of a product made at the beginning of the formation of an international tourism development program may be considered temporary for some time. Further stages of the implementation of the plan are necessary to find out how the initially selected product can be improved and improved in order to ensure that the interests and needs of new flows of foreign tourists are met.
The second stage of the plan is necessary for tourism authorities to clearly imagine what kind of accommodation, food, transport, entertainment, education, information and services will be provided to foreign tourists visiting China for the first time (Dredge and Jenkins, 2007). The information to be included in the catalog will include information about objects of increased tourist demand. This stage aims to compile a list of attractions in the region and air, rail and bus connections to destinations from the nearest international airport and a major city.
The third stage of the plan is needed, the authorities dealing with tourism issues have determined who their target audience is and were able to develop a program for the development of the industry in China. The purpose of this stage is to connect the regions of China and the domestic tourism industry with foreign consumers of tourist services and providers of such services operating abroad. In particular, this stage is carried out in order to maintain a database of destination and supplier objects. These materials will be used in the future to develop the concept of joint promotion of product sales with various tour operators and major airlines.
The fourth stage is necessary because it is easier and cheaper to develop a program on an existing base than to try to form this base from scratch. Entering the international arena is useful regardless of the final choice of the object for such a visit. The purpose of this stage is to assess whether the Chinese tourist product offered for international sale is really saleable (Burns and Novelli, 2006). Moreover, the fourth stage is carried out in order to find out how to improve the Chinese tourist product in order to improve its sales, and what resources should be added to improve the sale of tourist products.
Evaluation of Influence on Plan from Wider Environment
Being a complex socio-economic system, tourism is influenced by the wider environment, the role of which at any moment may be different both in strength and in duration of impact on the development of tourism. Therefore, its accounting is objectively necessary for the organization of the implementation of the plan for effective tourism activities in China. These factors influence the plan through changes in the life of society and have different significance for different elements of the tourism system.
Natural and geographical (mountains, forests, flora, fauna and climate) and cultural and historical factors as the basis of tourist resources are decisive when tourists choose a particular region to visit. The wealth of natural and cultural-historical resources, the possibility and convenience of their use have a significant impact on the scale, pace and direction of development of the plan (Burns and Novelli, 2006). Natural phenomena can lead to both surges and declines in tourist activity.
The influence of economic factors on the plan is mainly due to the fact that there is a close relationship between the trends in the development of tourism and the economy. There is a direct connection between the economic development of a country, the volume of national income and the material well-being of its citizens. Therefore, states with developed economies, as a rule, lead the world market in terms of the number of tourist trips of their citizens. Among the social factors of the implementation of the plan in China, first of all, it is necessary to note the increase in the length of free time of the population (Dredge and Jenkins, 2007). This is due to a reduction in working hours and an increase in the duration of annual vacations. Combined with an increase in the standard of living of the population, this means an influx of new potential tourists.
Demographic factors have a constant impact on the implementation of the plan in China. They relate to the size of the population, its distribution by individual countries and regions, the gender and age structure with the allocation of marital status and family composition. Thus, population growth in the world as a whole and its individual regions directly affects the increase in the number of tourists. Statistical data show that tourist flows from countries with an increased population density are more intense than from countries with a lower population density. Political and legal factors, such as the political situation in the world and individual countries and the policy of opening borders, have a significant impact on the effectiveness of the plan. Easing of administrative control in the tourism sector and unification of tax and monetary policy play a role.
Likely Success of the Plan
The likely success of the plan is focused on the so-called key success factors. They may be the availability of comprehensive information about tourist services in the conquered markets and competitors. Moreover, the success of the plan depends on the professional experience of the employees involved in the implementation of the plan, the quality of the services provided and their exclusivity, that is, the degree of uniqueness of the tourist product.
In addition, the implementation of the plan in China requires competent marketing: constant and effective advertising in the media. Among those listed, the factor of good customer relationships is characterized by the highest degree of generality. In the scientific literature, it is called customer relationship management (Dredge and Jenkins, 2007). This term characterizes the philosophy of implementing a client-oriented plan, in the process of which mechanisms for working with all participants of the tourist market are being established. It is advisable to consider the key success factors of the implementation of the plan by comparing personal responsibility for them in the country planning changes and in the country with the highest performance indicators (Edgell and Swanson, 2018). At the same time, the term responsibility should be understood not as obligation, but as the expediency of carrying out a particular event.
Changes in the plan always require the use of effective methods of managing them. The adaptation of personnel to the changing conditions of the internal environment and their management in these conditions always present certain difficulties. Stereotypes of working behavior, habits, fear of new beginnings, unwillingness to intensify their work often lead to passive, less often active opposition of employees (Dredge and Jenkins, 2007). Forms of resistance to change can range from overt disobedience to covert reactions that may be unknown to the leader.
Consequently, the intensity of the resistance of those responsible for the implementation of the plan largely determines its success. The factors influencing the success of the plan include economic, political, technological and international factors, factors of competition and social behavior. Situational factors or the so-called internal variables within the country are created tourism systems controlled by the state (Dredge and Jenkins, 2007). Among the most significant factors affecting the success of the plan, the following can also be distinguished.
The first factor is competition: in a competitive struggle, a country can choose both offensive and defensive tactics. If it does not adapt to the conditions of competition, it is unsuccessful. The second factor is the economic downturn: many small countries are not able to achieve the success of the plan in the context of a general economic downturn. The third factor is imperfect management: the plan may not be successful due to poor management. Typical problems in this case are a lack of depth and variety of management expertise methods, unsatisfactory work of planning and accounting services and general incompetence of personnel (Burns and Novelli, 2006). Moreover, problems with the success of the plan may be caused by inadequate initial capital. This happens as a result of underestimating the total cost of changes and revaluation of the period after which it is expected to receive profit from the successful implementation of the plan.
Recommendations for Future Policy and Planning Initiative
The process of modeling the effective activities of tourism and hotel enterprises for a certain period of operation should begin with the establishment of tourism development goals in China and their changes in the uncertain market environment. Next, it is necessary to determine how to implement these goals and objectives in accordance with the resource capabilities of the region. Strategic planning should be characterized by a degree of uncertainty, a time orientation of the planning process and a certain planning horizon.
It is necessary to take into account past experience, while adapting to the present and focusing on future changes. Thus, future policy should be based on the interaction of all the best ideas for these types of planning in the present, past and future. From the point of view of the planning horizon or time period, strategic planning should be calculated in several stages. Long-term strategic planning should cover a period of 10 years (World bank tourism indicators, 2022). The choice of such a duration is due to a number of reasons and, first of all, the fact that during this period, as a rule, drastic changes in science and technology occur.
Moreover, during the long-term time interval, there is a change of fixed assets and changes in consumer tastes and preferences towards new types of products and services. Medium-term planning should be carried out for the next 5 years (World bank tourism indicators, 2022). In it, the installations made in the process of long-term strategic planning, as it were, receive their economic justification and clarification, taking into account the trends in the development of the economic situation. Based on strategic medium-term plans, it is necessary to make short-term planning. Their peculiarity is that the indicators of the next year can be adjusted quarterly. Thus, the use of a multi-layered future implementation policy will allow the plan to respond to changes in the wider environment without deviating from the set course.
Reference List
Burns, P. and Novelli, M. (2006) Tourism and politics: Global frameworks and local realities. Oxford: Elsevier.
Dredge, D. and Jenkins, J. (2007) Tourism planning and policy. Milton: Wiley.
Edgell, D. L., and Swanson, J. R. (2018) Tourism policy and planning: Yesterday, today, and tomorrow. Abingdon: Routledge.
OECD tourism statistics (2022).
World bank tourism indicators (2022).
World tourism statistics (2022). Web.