Social Impact of the Individual Visitor Scheme (IVS) of Chinese Mainland Tourists on Kong: Evidence from Hong Kong Residents

James Shen Hanqin Qiu Xi Li Agenda

• Introduction • Research Gap • Objectives • Literature Review • Methodology • Findings, Discussions and Implications

Introduction Introduction (1)

Historical Development of Individual Visit Scheme (IVS)  Implementation of IVS in 2003  49 mainland cities covered until 2007  Expansion of IVS in 2009 one-year multiple-trip permit for 4 million residents  62.4% of IVS visitors were under a multi- trip permit in 2013

Introduction (2)

Positive Impact of IVS 40.7 million visitors from mainland to Hong Kong (75% of total visitors )  IVS accounting for 67% of total mainland visitors Daily Expenditure: HKD3593 for IVS, HKD1970 for non- mainland visitors 72.9% expenditure on shopping for IVS visitors Economic Contribution of IVS 1.3% of GDP ( HKD 12.6 billion,114,280 jobs) 22.2% of total retail sales  Encounter with local residents (transportation mode, shopping areas)

Introduction (3)

Negative Impacts of IVS  Social capacity issues

Transformation of the retail distributions

 Conflicts between locals and IVS visitors Research Gap

• Previous research of IVS mainly on the behaviors, very few researches paying attention to the dimensions of social impacts. • Current research on IVS has been mainly concentrated on the industry and visitor aspects, with few exploring it from the perspective of local residents.

Objectives

• To identify the major dimensions of the social impact of IVS from the perspective of residents • To investigate the impacts of the social dimensions of IVS on the attitudinal and behavioral inclinations of the local residents • To propose practical measures to enhance social sustainability of the IVS as a special mode of travel by mainland visitors to Hong Kong

Literature Review Literature Review (7)

Social Representation Theory It can be defined as the knowledge systems of preconceptions, images and values held by members of the community that are culturally embedded and distinguished from individual experiences.(Ying, 2004) Embodiments of social representations are products of socialization in themselves, including experiences, information, knowledge way of thinking. Literature Review (8)

Main sources shaping social representation

 Direct control(culture, group)  Conversation and social interaction in its various levels  Direct Experience

Literature Review (9)

Social representation IVS contexts - Social and cultural peculiarities of IVS - Incomprehensive analysis of traditional theory on IVS - Social representation better explaining tourist- resident relationship

Theoretical Framework and Hypotheses (1) Theoretical Framework and Hypotheses (2)

• H1: The perceptions of Government regulations have a positive impact on the attitude of local residents • H2: The perceptions of the social impacts of IVS by local residents has a positive impact on their attitude toward IVS • H3: The level of place attachment of local residents has a positive impact on their attitude toward IVS. • H4: The attitude of local residents in Hong Kong toward IVS has a positive impact on their behavioral intentions.

Methodology Methodology(1) Research Process Methodology(2) Sampling

Findings, Discussions and Implications Findings (1) The measurement model

χ2=900.311, df=451, p < 0.001,CFI=0.936, GFI=0.93, and RMSEA=0.07 Findings (2) The structural model

χ2=900.311, df=451, p < 0.001,CFI=0.936, GFI=0.93, and RMSEA=0.07 Final Structural Equation Model Results of Hypotheses Testing Hypothesis Path Supported or not supported H1 Government regulations Residents’ Supported attitude (B= 0.44, T=7.26) H2.1 Socio-economic impact Residents’ Not Supported attitude H2.2 Social life impact Residents’ attitude Supported (B=0.32, T=8.63) H2.3 Cultural Landscape Residents’ attitude Supported (B=0.27, T=6.52) H3 Place Attachment Residents’ attitude Supported (B=0.32, T=9.57) H4 Residents’ attitude Behavioral Supported Intention (B=0.79, T=11.8) Discussion (1)

• Overall negative attitude towards IVS

• Positive influence of social life and culture landscape impact.

• insignificant relationship between socio- economic impact and residents’ attitude

Discussion (2)

• Level of endorsement with government regulations positively related to residents attitude

• Positive correlation between place attachment and residents’ attitude

Theoretical Implications

• Integration of traditional conceptualizations of social impact and social representation perspectives

• The placement attachment function as antecedents of residents attitude

• Incorporation of government regulations

Practical Implications

• Social Factors identified for minimizing negative social impact of IVS • More attention on socio-economic impacts • Establishing a balanced system of values regarding place attachment • Incorporation of residents’ attitude when designing tourism policies • Attributes identified helping to translate the social impact into its social benefits

Thank you!

Q & A