2. Lecture #2.1 In-bound Travel Service Lecture Objectives: Understand contribution of tourism to China’s national economy and opening to the world Understand contribution of tourism to China’s national economy and opening to the world – China’s comparative advantage in attracting in-bound tourists resources diversity resources diversity history history mystery of a closed communist regime from 1949 to the early 80’s mystery of a closed communist regime from 1949 to the early 80’s Review culture as an attraction for promoting in-bound travel Review culture as an attraction for promoting in-bound travel – a case analysis of early 1990’s – a current case in Beijing Discuss issue of authenticity in tourism study (part #1) Discuss issue of authenticity in tourism study (part #1) – tourism infrastructure development and modernization of China

3. Useful References  Li, Y. (2003). Heritage tourism: Contradictions between conservation and change. Journal of Tourism and Hospitality Research, 4 (3): 247-261  Xie, F. (2003) The bamboo-beating dance in Hainan, China: Authenticity and Commodification. Journal of Sustainable Tourism, 11: 5-16  Wang, X. (2003). China in the eye of Western travelers, 1860-1900. In Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 35-50. New York: The Haworth Hospitality Press

4. Understand contribution of tourism to China’s national economy & opening to the world in the 80’s and early 90’s

5. Major Characteristics of China’s Tourism Industry The political: The political: – Socialist/communist centrally planned economy centrally planned economy top-down approach as opposed to bottom up needs of tourism resource management top-down approach as opposed to bottom up needs of tourism resource management The economic: The economic: – Profit-oriented hunger for capital investment in the so-called ‘ early stage of socialist market economy ’ hunger for capital investment in the so-called ‘ early stage of socialist market economy ’

6. The development mode The development mode – Rapid growth at a recent start – Mode of development: #1 Int’l inbound =>#2 Domestic + Int’l Inbound =>#3 Domestic + Int’l in- & out-bound manifestation #1: culture as a resource for tourism

7. Political guidance and central control (top-down) Political guidance and central control (top-down) evolution of tourism management at nation-state level – early 1950s: politics and Chinese ‘face” culture Mao Ze Dong: ( 打掃干淨房子再請客 ) – 1964:China Travel and Sightseeing Bureau ( 中國旅行游覽事業管理局 )

8. – 1982: China National Tourism Administration ( 中華人民共和國國家旅游局 ) – 1983: The State Council made the strategy for tourism development: ( 友誼為上, 經濟受益 ) – 1995: The 9 th Five-Year Plan designated tourism to be the first among the “ tertiary industry ” ( 第三產業 ) Continuous growth for 3 decades Continuous growth for 3 decades

9. Regional difference in development Regional difference in development

10. Contribution of Tourism to China’s National Economy Enhancing development of other related economic sectors Enhancing development of other related economic sectors – Food and beverage – Accommodation – Transportation – Sightseeing – Shopping – Entertainment( 吃﹐ 住﹐ 行﹐ 游﹐ 購﹐ 娛 )

11. Creating employment opportunities 1:5 relationship Creating employment opportunities 1:5 relationship – 1 job in tourism industry can indirectly create 5 jobs in related industries Increasing foreign exchange earnings Increasing foreign exchange earnings 2 ways of increasing foreign exchange earnings: commodity trade service trade (including tourism) what are advantages and disadvantages of service trade?

12. For your critical thinking:  Along with rapid growth of China’s economy, what are the associated changes regarding:  tourism product supply & resource management?  mode of tourism development?  implications for balancing international trade?

13. The advantage of tourism trade – points for you to reflect critically:  Trade of intangible products:  commodity supply  tourism related goods  consumption of energy  less than other kind of industries?  Place of trade:  cost of storage and transportation  Place of consumption:  cash trade and exchange rate

14. Review culture as an attraction for promoting in- bound travel for tourism development of China

15. A case analysis in the early 1990’s References: Li, Y. 2000. Ethnic tourism: A Canadian experience. Annals of Tourism Research 27 (1): 115-131. Swain, M. B. (1995). A Comparaison of state and private artisan production for tourism in Yunnan.In Lew, A., and Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 223-236.Boulder: Westview Press

16. Ethnic tourism & Yunnan ’ s rich culture resources Clarifying the concept: Clarifying the concept: ethnic tourism: – The term: is interchangeable with the concept of “cultural tourism” is interchangeable with the concept of “cultural tourism” referrs to the “quaint” customs of indigenous & other “exotic” peoples referrs to the “quaint” customs of indigenous & other “exotic” peoples – The experience involves some direct experience with ethnic culture & environment involves some direct experience with ethnic culture & environment – The most important element is human culture & heritage human culture & heritage

17. Cultural & Economic Perspectives of Ethnic Tourism Market(origin) Product(attraction) Physical Travel Spatial Movement Ethnic cultural resources demand supply Cultural commodification – Food and beverage – Accommodation – Transportation – Sightseeing – Shopping – Entertainment

18. Discuss issue of authenticity in tourism study (Part#1)

19. One of the consequences in the process of cultural commodification: problem of authenticity Understanding “ authenticity ”  Authenticity as tourism image  staged authenticity

20. Culture tourism in China today: Case of Art 798 in Beijing:

21. Further discussion of authenticity Authenticity as individualism Authenticity as individualism – Freedom of an American style Authenticity as liberation of a modern society Authenticity as liberation of a modern society – Tourism impacts and modernization of China (to be discussed in future lectures) An authentic or false modern China?

22. Is China a modern, and / or modernized society?

23. Lecture # 2.2 Demand of Outbound Travel Lecture Objectives: understand leisure as a concept and a life style in China understand leisure as a concept and a life style in China examine increasing demand of China’s outbound leisure travel examine increasing demand of China’s outbound leisure travel discuss implications of such demand for Hong Kong and the international community discuss implications of such demand for Hong Kong and the international community Useful References Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 263-276. New York: The Haworth Hospitality Press Xiao, H. (2003). Leisure in China. In Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 263-276. New York: The Haworth Hospitality Press Zhang Qiu, H., Jenkins, C. & Qu, H. (2003). Mainland Chinese outbound travel to Hong Kong and its implications. Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 277-296. New York: The Haworth Hospitality Press Zhang Qiu, H., Jenkins, C. & Qu, H. (2003). Mainland Chinese outbound travel to Hong Kong and its implications. In Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 277-296. New York: The Haworth Hospitality Press

24. Understand leisure as a concept and a life style in China

25. Passive Leisure Recreation Sport Tourism LEISURE Figure 1The Leisure Domain Source: Prosser (2000) Leisure, Recreation and Tourism, p. 4.

26.  Personal Income Distribution (based on Mill & Morrison, 2006, pp. 261): It is also important to understand that the income spent on tourism is spent at the expense of something else. Tourism expenditures are in competition with other expenditures, some of which are discretionary: HK$ 28,000 HK$4,200 HK$23,800 Food, utilities, rent, etc. HK$13,000 Collecting; gardening, gambling, theatres and concerts, etc. from the HK10,800 HK$10,800 How much, from the HK10,800, could be spent on tourism travel?

27. Conceptualize Leisure  What is leisure?  time (discretionary time)  expenditure (discretionary income)  an antithesis  a state of mind: freedom of being different

28. Major academic enquires about leisure:  Leisure participation and social stratification  Hi-income earners with more ‘culture capital :  legitimate forms of leisure  Low-income earners with less ‘culture capital :  popular forms of leisure Where does tourism belong?

29. Today, this overall picture of the relation between social structure and the cultural composition of the leisure field has become more complex, largely due to the rise of the new middle class in size and politico-cultural significance:  Educated – college or above  Professional – white collar?  Middle to high range of income  Diversified family backgrounds  etc.

30. As a result …… The leisure field has become more open with all kinds of national public cultural monopolies being side tracked by different kinds of global cultural flows and changes, of which ….. …. TOURISM IS ONE

31. Evolution of leisure as a life style in China (1) please read your textbook (Chapter #14) Leisure before 1979, give your thoughts to:  How leisure in China was shaped by these factors:  discretionary income  discretionary time  quality and availability of public leisure facilities  urban & rural differences in leisure provision/participation =>  leisure behavior patterns

32. Evolution of leisure as a life style in China (2) please read your textbook (Chapter #14) Leisure since 1979, give your thoughts to:  How leisure life in China has been shaped by these factors:  Public policy (especially the economic)  improved global-local nexus in the 1990 ’ s  international relations  exposure to new information and technology  foreign trade increase  Transformation of public policy (social) =>  Direct effect on leisure provision & management  Direct effect on leisure provision & management

33. 1. Diversification of income & increase of disposable income State Council Pay Raise Act State Council Pay Raise Act 2. New system of labor and employment competition and work pressure competition and work pressure need for leisure need for leisure 3. Trade union’s role in 1990s Public welfare extended to wider section of community Public welfare extended to wider section of community Sources increase for leisure activities Sources increase for leisure activities China’s outbound travel as one of the direct effects

34. Examine increasing demand of China’s outbound leisure travel

35. BACKGROUND – China will be the 4 th biggest world outbound tourist-generating country by 2020 (WTO, 1997) World’s Top 10 Tourist-Generating Countries in 2020

36. Major social, economic & political factors for the demand – Economic growth – Increasingly open-oriented public policy – Relaxation of travel rules Seven day free visa to HK Seven day free visa to HK Single currency system Single currency system 5 day working policy 5 day working policy CEPA arrangement CEPA arrangement

37. The engine of growth  Rapid growth of the economy (south china morning post 15/01/2009) :  2008 = has been recorded as 9% (accessed on 22/01/2009: http://finance.sina.com.cn/g/20090122/10005791031.shtml  2009 = predicted to be 8%

38.  Income increase lifted living standard greatly  With economic expansion, came the inexorable rise of the new middle class 中国 :USD2460 => 104 香港 USD29149 => 28 台湾 USD16274 => 36 澳门 USD36357 => 20

39.  The rippling effect: Domestic Tourism Outbound Intra-Asia Travel to HK, Thailand, Malaysia & Philippines Inter-continental travel Outbound Travel by Chinese Residents

40. Where would they like to go? Major destinations :  Hong Kong  Macau  Thailand  Malaysia  The Philippines  Japan  Russia  USA  Singapore  Australasia  Everywhere in the world since 2000…...

41. VISA, can ’ t leave home without it!  The ability to travel outside China depends on not only adequate income but … Official permission for both exit and entry as well

42. More and more foreign countries are granting visas to Chinese tourists reflecting China’s growing economic stature and the increasing affluence of her nationals

43. Where are outbound travelers from? 3 top sources:  Guangdong  Shanghai and adjacent provinces like Zhejiang and Jiangsu  Beijing and its coastal neighbouring regions

44. The favorite destinations:  Thailand  Singapore  Malaysia Main reasons  Large number of ethnic Chinese  Moderate level of economic development  Relatively cheap  Short distance  Devaluation of currencies  etc.

45. Discuss implications of China’s outbound travel demand for Hong Kong & the world

46. Tourism forecast for HK in 2009  Total arrivals  29 million (-1.6%)  Mainland arrivals  17.5 million (+4.1%)  Other arrivals  11.4 million (-9.2%)  Average stay (days)  3.2 (-0.1%)  Per capita spending  HK$5,278 (-1.5%)  Tourism revenue  HK$148b (-0.4%) Source: South China Morning Post 15/01/2009)

47. The implications for Hong Kong  China is already the largest tourism market within the Asia Pacific regions  The launch of the individual travel scheme only cements further China ’ s position as Hong Kong ’ s top tourism market  Reconsider Hong Kong ’ s focal appeal:  “ City of life ” and Asia ’ s leisure capital?  Asia ’ s World City as a strategy for global marketing?  New attractions such as Disneyland ?

48. Implication for the World  China ’ s large population base gives her the NUMERICAL potential to become a huge source of international outbound tourism

49. What should the rest of the world do?  The needs and preferences of Chinese travelers should be better studied and known  Care should be taken to meet their needs and supply services in a way appealing to their preferences and tastes

50. More actions to be taken?  Market research to sort out market segments  Variable factors for segmentation:  Motivation  Behavior  Geographic origins  Gender  Age  Education  Income  Development of special travel packages  Identification of destinations with features appealing to Chinese tourists  More provision for the use of the Chinese language as English is not widely used among Chinese people

51. How to cope with the tourists from a ‘ false modern society ’ ? 法国旅游业者称中国游客最难伺候 (French tourism agents found Chinese tourists to be the most difficult to handle) http://www.sina.com.cn 2006 年 12 月 27 日 01:35 北京晨报 : 两节将至又到出境游高峰，各方讲述部分国人不文明举止，法国旅游界 人士说 —— 临近元旦和春节，国人出游的热情再次高涨，欢乐旅游的 同时，游客的不文明行为也将再次增多。日前，记者采访了国内旅行社、 国外旅游业工作人员以及中国留学生，发现尽管国家旅游局发布了《中 国公民出国 ( 境 ) 旅游文明行为指南》和《中国公民国内旅游文明行为公 约》，但部分中国游客在旅游时仍然 “ 不拘小节 ” ，令人尴尬。 http://news.sina.com.cn/c/2006-12-27/013511891746.shtml

52. 伦敦华人：中国游客让我羞愧 A Chinese Londoner: I feel ashamed of some Chinese tourists who visit UK 需要在国外改变形象的不仅仅是中国普通游客 (2009-01-13 06:55:57) 看了很多关于中国游客在国外的习惯被人诟病，以致受人歧视的文章。 作为一个在中国文化环境中长大的中国人，在英国生活了多年，亲身感受了东 西方不同的文化，想从自己的体会谈一些看法。 世界上每一个国家每一个民族都有自己的传统自己的习惯，在一个国 家被认为很正常的习惯很有可能在另一个国家被认为是恶习，这种现象本就很 正常。例如，中国人在与朋友一起吃饭时，喜欢热热闹闹，高声谈论，这是一 种轻松和谐的气氛；而在西方，吃饭时喜欢安静，低声交谈，这是一种尊重他 人的文明现象。又如，在中国，当人面擤鼻涕是很不礼貌的举动；而在英国这 里，在很多场合你都可以看到洋鬼子掏出手帕或纸巾把鼻子冲得震天响，他们 并不觉得有什么不妥。因此，不同文化背景的人之间，有很多习惯是相互不能 接受的，但重要的是要知己知彼，扬长避短，互相尊重，而对出国旅游的人来 说，重要的是要入乡随俗，尊重主人文化。说起来简单，要做起来就不太容易 了。。。。。。。。。。。。。 http://blog.sina.com.cn/s/blog_52de60510100bvyp.html?tj=1 (accessed on 01-14-2009)

53. Discuss issue of authenticity in tourism study

54. One of the consequences in the process of cultural commodification: problem of authenticity Understanding “ authenticity ”  Authenticity as tourism image  staged authenticity  Authentic as a factor of success  Authenticity as individualism  Freedom of an American style  Authenticity as liberation of a modern society  Tourism impacts and modernization of China (to be discussed in future lectures)

55. Economic and social Implications of China’s outbound travel demand  Tourism becomes an important vehicle to drive China ’ s modernization campaign:  Leisure becomes a life style of which tourism is one choice  Tourism is a result of China ’ s tremendous economic growth  The demand for tourism accelerates such growth, e.g. infrastructure building such as hotels, roads, and airports  Along with the economic growth, social change may occur  What would be these social changes?

56. 2 parallel aspects of modernization A) Economic growth: indicators of the false modern:  Technically positive outcomes such as  Money, money market, capital accumulation, etc. =>  Infrastructure development  Hotels  Transports  Communication, etc. => to facilitate tourist travel?

57. 2 parallel aspects of modernization (Cont’d) B) Social change: indicators of the authentic modern:  At the individual level- freedom?  => tourism – escape from daily routine - authenticity – freedom of American style?  At the societal level:  Institutional change – the authentic modern => Democracy?

58. Tourism as a driving force of China’s modernization - false modern aspect: Hotel development