Fragmentation in China’s Public Administration and Its Impact on the Development of Tourism HU Wei Distinguished Professor & Dean School of International and Public Affairs Shanghai Jiao Tong University

Marketization Marketization as a great trend and orientation of China’s development in Post-Mao China, is currently both the context of China's public administration and the basic dynamics of its administrative development.

China GDP,

GDP ranking 2010 (million USD)

China—BOOMING Tourist Source China's tourism has grown rapidly because of China’s marketization and economic development in the past 3 decades. China's membership in WTO as well as Beijing Olympic Games and World Expo 2010 have stimulated the country's booming tourism market.

China—A BOOMING Tourist Source Tourism has become the industry with the greatest vitality in China’s economic development. According to some experts, China would be the world’s No.1 tourism destination and the fourth largest nation of tourists.

Marketization → Decentralization Devolution Deregulation 3Ds Downsizing

Decentralization China’s administrative reform has experienced decentralization and transformation of the administrative function in the past decades.

Fragmented Across Different Levels and Departments Despite of the progress in China’s public administration since the Reform, it has been rather difficult for China’s government to implement its policies and regulations because public administration and policy are fragmented across different levels and departments of the government.

Fragmented Authoritarianism A Dilemma: Out of control at macro level Over-control at micro level

Its Impact on China’s Tourism Administration

The 1 st Impact The 1 st Impact A Dual System of Chinese tourism administration has been formed in 1978 China National Tourism Administration (CNTA) was set up at the beginning of the reform. Tourism Administration at local levels were also created at the same time.

The 2 nd Impact: The 2 nd Impact: from Monopoly to Decentralization in tourism business operations Before 1978: Three Magnates of Travel Services CITS, CTS, and CYTS By 2009: 1460 international travel services The market is highly fragmented with top 100 travel agencies controlling 50% of the market.

The 3rd Impact The 3rd Impact A Polycentric System of Chinese macro tourism administration besides the China National Tourism Administration (CNTA) National Scenic Areas---Ministry of Construction National Forest Park---Ministry of Forestry National Nature Reserve---State Environmental Protection Administration National Geopark---Ministry of Land and Resources National Cultural Relics Preservation Unit---Ministry of Culture ……

Outcomes Tourism administration and policy are fragmented across different departments of the government

Since current policies are fragmented across several government agencies with different policy mandates, better integration of policies and implementation efforts is required. For such a purpose, the administration system of tourism has been changed at some local level. Tourism Commissions have been established in Beijing, Guilin and Hangzhou in order to coordinate the relevant departments of tourism under leadership of a vice mayor. Better Integration

Better integration will depend on the macro reform of China’s public administration system, such as the “Big Departments Reformation”. Another basic way is to introduce more market forces into the bureaucracy. ---3Ds are still needed

Thank you!