Inland China: a Sustainable Tourism Development Framework

2010

Inland China: A Sustainable Tourism Development Framework

HONORS CAPSTONE Submitted to PROFESSOR JUDITH SHAPIRO SCHOOL OF INTERNATIONAL SERVICE AMERICAN UNIVERSITY

HAN CHEN WASHINGTON, D.C. 30 APRIL 2010 1

Table of Contents Map of China ...... 2 Introduction ...... 3 The Rise of Tourism & China ...... 6 Recent Tourism History ...... 7 Sustainable Tourism Development ...... 14 Methodology ...... 20 Results ...... 21 Economic ...... 22 Cases ...... 23 Social ...... 28 Cases ...... 28 Cultural ...... 35 Cases ...... 35 Environmental ...... 41 Cases ...... 41 Conclusion ...... 43 Future Research and Plans ...... 44 Bibliography ...... 46

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Map of China

Figure 1 http://www.sacu.org/provmap.html

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Introduction

Tourism in China has grown rapidly thanks to the country’s economic development in the last three decades. The opening of the economy to trade and the resulting growth in Gross

Domestic Product have fueled the development of infrastructure and a strong middle class with disposable income, which are good indicators for tourism growth. 1 In 1978, there were less than

one million foreign visitors and a small amount of domestic tourism. By 2006, there were almost

50 million foreign tourist arrivals and over one billion domestic visits recorded.2 What are the

consequences of such rapid tourism development in China? A closer study of tourism

development reveals major economic, social, cultural and environmental problems with the

industry’s expansion.

Broadly speaking, tourism development does not only generate profits for businesses. For

developing countries like China, it also represents an opportunity for economic development. In

fact, tourism development has been touted as a path to economic development for decades,

especially for countries in the Global South. The modernization theory, which undergirded the

work of the World Bank, USAID and other agencies, supposed that tourism would allow for

funds to be transferred from industrialized nations to less industrialized nations. 3 Thus, governments were told to build hotels, resorts, and tourism related businesses in order to benefit the national economy. However, decades of tourism failures revealed that the benefits of tourism were often leaked out of the country through foreign owned enterprises, or concentrated in a

1 E Turbo News, "Unwto: China May Surpass France as Top Tourist Destination by 2015" http://www.eturbonews.com/15067/unwto-china-may-surpass-france-top-tourist-destination-2015 2 J Zhang, "Spatial Distribution of Inbound Tourism in China: Determinants and Implications," Tourism and Hospitality Research 9, no. 1 (2009): 33. 3 Martha Honey, Ecotourism and Sustainable Development : Who Owns Paradise? , 2nd ed. (Washington, D.C.: Island Press, 2008). 37

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privileged group of the domestic population. 4 Social tensions, environmental degradation, and

cultural problems were also associated with tourism development.

Out of these findings, the concept of sustainable tourism development (STD) gained

traction in the 1970s, and began influencing organizations like the World Bank, as well as

national leaders and policymakers. The concept has particular relevance for China, where

tourism has grown rapidly and followed a predominantly profit-driven motive. The tenets of

sustainable tourism development include a concern for the natural environment, the local

economy and society, and local culture. First, this paper will explore the tenets of STD. Then, the

principles of STD will be used to address the growing problems of tourism development in

China, which include local resentment of top-down planning, economic inequalities brought

about by tourism, exploitation of cultures and local communities, and destruction of the natural

environment.

Sustainable tourism development theory provides a theoretical basis for improving the

gains from tourism, while reducing harms associated with it. Putting STD into practice has not

always resulted in success; some argue that is it more theoretical than practical. 5However, evidence suggests that STD can be practical, if implemented correctly. This work utilizes the

STD framework and seeks to identify the practical impediments to STD, particularly the structural inequalities within Chinese society, and demonstrate that STD is possible in China.

The following sections will detail the rise of tourism in China, as well as the associated problems

4 Polly Pattullo, Last Resorts : The Cost of Tourism in the Caribbean, 2nd ed. (London New York: Latin America Bureau ; Monthly Review Press, 2005). 98 5 See Richard Sharpley, Tourism Development and the Environment : Beyond Sustainability? , Tourism, Environment and Development (London ; Sterling, VA: Earthscan, 2009).

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and recommended sustainable solutions to economic, social, and cultural aspects of tourism development.

The following analysis of different case studies will illustrate the progress and challenges for STD in China. After explaining the facets of STD, each section will provide analysis of case studies which showcase a successful sustainable tourism model, or projects that have fared poorly and ignored the STD model. The goal is to highlight some key recommendations for STD in China, many of which has been tested outside of the China case, and see how STD can best be utilized for China. Hopefully, this guide will provide useful information for determining the next steps for STD in China.

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The Rise of Tourism & China

Since 1950, tourism worldwide has grown at an average annual rate of 6.5 percent. There were 25 million international arrivals in 1950, but over 806 million in 2005. Europe and the

Americas have maintained the greatest market share, but expansion in Asia has been strongest, averaging over 13 percent a year. Growth in China has been particularly rapid. In the last decade alone, foreign tourists grew from 8 million to 48 million. Since March 2010, China has ranked as the fourth most popular tourism destination in the world. In comparison,

France saw 80 million incoming tourists a year, while the United States and Spain each saw about 60 million a year. 6 Taleb Refai, a senior official at the Figure 2 from UNWTO http://unwto.org/facts/menu.html United Nations World Tourism Organization, announced that China will surpass France as the largest tourism destination by 2015.

The tourism development industry has boomed in recent decades. Particularly for developing countries, tourism has become a profitable enterprise. It provides foreign currency, infrastructure development, technology and knowledge transfer, as well as cultural exchange. In

2003, international tourism receipts represented about 30 percent of service exports worldwide. 7

In China, tourism provided 17 million jobs directly in 2006. If indirect effects on other sectors such as travel are included, then estimates by the World Travel and Tourism Council

6 E Turbo News. 7 United Nations World Tourism Organization, "Tourism and the World Economy " http://unwto.org/facts/menu.html.

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indicate that tourism has provided for 77 million jobs, or about 10.2 percent of total employment in China. China’s tourism expansion has occurred within a rather short time frame. The pace of change and development makes the country an interesting case for STD. Like past tourism development, the primary driver seems to be macroeconomic gains, but given the new level of attention to STD by scholars, the STD framework may be a useful tool for analyzing and restructuring tourism in China.

Figure 3 Tourism has grown rapidly in China, given the rise in living standards and disposable income, particularly for those in urban areas

Recent Tourism History Political

Tourism has evolved drastically from a near non-occurrence in the People’s Republic of

China into a rapidly growing economic sector. From the start of the People’s Republic of China in 1949 to 1978, tourism was a political endeavor to promote diplomatic ties to friendly nations,

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and few international tourists were allowed into China. Domestic travel hardly existed. In 1978, the Third Plenary Session of the eleventh Congress of the Communist Party of China shifted the national focus to economic reconstruction, opening the door to rapid tourism development. 8

As restrictions loosened, tourism doubled every year between 1977 and 1980. It is important to note that 80 percent of the arrivals were overseas Chinese. 9 In the 1980s, China still

ranked fortieth in international tourism arrivals and receipts. Since 1986, tourism has been

regarded as an important industry for the national economy and received special priority in

national policy. By 1994, China had become one of the top ten destinations worldwide. From

1978 to 2006, the inbound tourist arrivals and tourism receipts grew 19.4 percent and 20.2

percent, on average each year. There were 71600 foreign tourist arrivals in 1978, but over 49.9

million in 2006. 10 Today, tourism in China is a buyers’ market, with supply of services

exceeding the growth of international arrivals. 11

Business

At the same time, the tourism industry has transitioned from state owned monopoly to a

decentralized sector with domestic and foreign sources of investment. Tourism is an important

economic activity because it generates income, and foreign exchange. Since 1978, the

government via the China National Tourism Administration (CNTA) has coordinated tourism

development and promoted China’s tourism product internationally. In 1978, the only travel

agencies were CITS and CTS. Then, the State Council decided that the central government,

8 Hanqin Qiu Zhang, Ray Pine, and Terry Lam, Tourism and Hotel Development in China : From Political to Economic Success (New York: Haworth Hospitality Press/International Business Press, 2004). 9 LK Richter, "Political Implications of Chinese Tourism Policy," Annals of Tourism Research 10, no. 3 (1983). 10 Zhang, "Spatial Distribution of Inbound Tourism in China: Determinants and Implications," 33. 11 Zhang, Pine, and Lam, Tourism and Hotel Development in China : From Political to Economic Success , 17.

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localities, government departments, collectives, and individuals could invest and operate tourism projects.

Between 1978 and 1985, the decentralization for tourism management to regional and urban organizations created conflicts of tourism stimulation and regulation. 12 In 1980 marketing

promotion was decentralized, as well as travel services once monopolized by CITS CTS and

CYTS (China Youth Travel Service). Local airlines were established with approval from the

State Council. Before, only CITS and CTS (China Travel Service) could contact foreign tour

operators. Foreign investors could also invest, and many businesspeople from the United States,

Hong Kong, Singapore and Indonesia did so. 13 By 2000, over 8993 agencies provided travel services in China. Most of the businesses are small scale in terms of income and profits. 14

Regionalism

China experiences regional inequality in tourism development. Much of the tourism concentrates in coast areas, particularly in Guangzhou, Beijing and Shanghai. Areas with the greatest volume of tourism are Guangdong, Beijing, Shanghai, Fujian, Jiangsu, Zhejiang,

Liaoning, Yunnan, Shandong and Guangxi. 15 In 2000, 17 of the top 100 travel agencies were located in Zhejiang, Shanghai and Jiangsu. The key variables for this phenomenon are socioeconomic development of the areas, accessibility/infrastructure, and tourism resources and facilities. 16 In looking for places to develop sustainable tourism, it is therefore important to think about how tourism can benefit inland provinces and bring them closer in quality of life to coastal

12 Andrew Church, “Local and Regional Tourism Policy and Power” in Alan A. Lew, Colin Michael Hall, and Allan M. Williams, A Companion to Tourism , Blackwell Companions to Geography (Malden, MA: Blackwell Pub., 2004). 13 Zhang, Pine, and Lam, Tourism and Hotel Development in China : From Political to Economic Success . 14 Ibid. 15 CNTA, Yearbook of China Tourism Statistics , 2002. 16 Zhang, Pine, and Lam, Tourism and Hotel Development in China : From Political to Economic Success .

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areas. Reaching the coastal areas is more convenient for most travelers, since the infrastructure is better. More flights arrive at destinations like Beijing and Shanghai. And, roads leading away from these key destinations are better than in the inner (or western) part of the country.

Developed areas are also more competitive because of matured services and business opportunities.

Figure 4 Most tourists go to coastal provinces, where famous relics (such as the Terra Cotta Warriors) are found The coast includes Beijing, Tianjin, Hebei, Liaoning, Heilongjiang, Shanghai, Jiangsu,

Zhejiang, Fujian Shandon, Guangdong and Hainan. Inland includes Shanxi, Inner Mongolia,

Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Guizhou, Yunnan, Tibet Shaanxi, Gansu,

Qinghai, Xinjiang, Sichuan, Chongqing, and Ningxia.

Regionalism has also contributed to tourism disparity. In the 1980s, the provinces were isolated and the laws were often protectionist and favored some regions over others. In the 1980s and early 1990s, not many cities in China were accessible to foreign tourists. Even if a tourist

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were granted access to one city, they did not necessarily have permission to visit surrounding areas or cities. This effect came about because of the state policies, but also due to the different geographical variations and language differences between areas. 17 The reform period led to some regulations that promoted trade and relaxed regulations between regions. Today, the regional barriers are gradually being removed. Thousands of cities are open to foreign tourists, as compared to only a few dozen open cities two decades ago. Today, 92 percent of cities or counties in China are open to foreign tourists. 18 However, barriers still exist. Some state

regulations do not allow one tourism agency to operate in another region. Tourist groups must

hire local guild workers, even if they come from another region. Some tourism attractions forbid

buses from other regions. And, price discrimination exists for non local tourists. 19

Inland Tourism

Fortunately, it has been observed that the share of tourism to the east coast has decreased from 1978 to 2005, though GDP has been more concentrated in the coast. Travelers have expanded inland. In fact, places such as Yunnan offer attractions not found along the east coast.

Beth Notar and other authors have paid special attention to tourism development in Yunnan for several reasons. Ethnic tourism is growing rapidly. It has the largest concentration of minorities in China, with 26 recognized groups in the province. Outdoor tourism is also a key factor, since

Yunnan has many scenic natural features, which have begun to attract international tourists.

With greater mobility and lower transportation costs, the inland provinces will only become more available for tourism, particularly since there are many cultural and minority groups, and natural attractions different from the coastal provinces. Tourists can see the many

17 Zhang, "Spatial Distribution of Inbound Tourism in China: Determinants and Implications," 38. 18 Ibid. 19 Ibid.

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ancient capitals, the Silk Road, Tibet, Genghis Khan’s mausoleum in Inner Mongolia, Sichuan cuisine, and ethnic minority groups. 20 Visitors can also experience natural resources such as the

landscapes, caves, animals and plants of China, from the plateaus to the basins and hills. There

are so many famous and scenic destinations such as Huangshan in Anhui province, or the scenic

views in Guilin, Guangxi, the Tiger leaping Gorge and the Stone Forest in Yunnan, the Zhijin

caves in Guizhou, not to mention the famous giant panda habitat in the Jiuzhaigou-Huanglong

World Heritage Site in Sichuan. 21

The State

Inland tourism is growing fast. The development of tourism facilities such as hotels and airports has increased more rapidly in the inland areas compared to coastal areas. Only two inland provinces did not have airports in 2005. With this infrastructure, Zhang demonstrates a significant and positive effect on international tourism receipts. And, the number of international tourist agents in the inland provinces grows more quickly than on the coast.22 Since the mid

1990s, Chinese leaders have focused on western development. While the coastal areas still have

higher concentrations of tourism, the support of the government through construction of basic

infrastructure, and poverty alleviation in ethnic minority areas have provided non-market

resources to develop inland tourism. Today, most provinces consider tourism as a pillar industry.

And, the lowering of inter-regional restrictions means that tourism can have a diffusion effect,

where growth in one area benefits its neighbors. More work is needed on regional cooperation

20 Ibid.: 44.. 21 Ibid. 22 China Tourism Administration, The Yearbook of China Tourism Statistics (2009).

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and the complementarities of tourism products. Fortunately, 12 provinces in West China recently signed a cooperation agreement on tourism to promote joint development and tourist routes. 23

23 Zhang, Pine, and Lam, Tourism and Hotel Development in China : From Political to Economic Success .

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Sustainable Tourism Development

In the 1960s, governments of developing nations looked to mass tourism as a path to economic diversification, especially in island nations and resource-scarce countries where few economic alternatives existed. Tourism was seen as a path to economic development and viewed positively. 24 Given the optimism about the potential for foreign exchange, many countries developed mass tourism projects without assessing the feasibility, or opportunity costs. Mass tourism is a highly mechanized approach, where package tours are the norm, and the tourism industry vies to have the highest profit margins. But in the 1970s and 1980s, the purported economic benefits from tourism did not come to fruition. 25 In fact, many tourist sites which were

supported with government money, or loans from the World Bank, IMF and other institutions,

proved to be harmful to local communities. 26 As a result, countries began experimenting with niche tourism markets to promote development. The niche tourism markets can be classified by the intentions of the tourist, the impact on cultures, or impact on the environment. Some niches, such as adventure tourism or dark tourism, are categorized by the intentions of the tourist. Other niches, such as sustainable tourism or ecotourism, are categorized by their impact on local environments as well as other impacts.

At the same time that tourism development was taking place, a broader call for reform of development theory was taking place. Critics were rejecting the modernization theory of a linear path from traditional society to modern society. Thus, theories of economic development and social change were undergoing transformations in academia and in practice. Rather than focusing on economic development, reformers called for a broader interpretation of development.

24 M Crick, "Representations of International Tourism in the Social Sciences: Sun, Sex, Sights, Savings, and Servility," Annual Review of Anthropology 18, no. 1 (1989).314. 25 Ibid.315. 26 Honey.

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Economists, sociologists, politicians and others began to promote the idea of sustainable development. The 1987 World Commission on Environment and Development contains the basic canons of sustainable development: ecological sustainability, economic sustainability between and within generations, social sustainability that increases personal control of one’s life and builds community identity, and cultural sustainability of the culture and values of affected peoples. 27

Around the same time, scholars such as Martha Honey noted the negative impacts of

tourism on the environment, local economies, and society. Just as critics of modernization theory

had ushered in a shift to sustainable development, critics of tourism development advocated for

sustainable tourism development. According to the Agenda 21 document Chapter IV part 43,

from the World Summit on Sustainable Development in Johannesburg,

Sustainable tourism development meets the needs of present tourists and host regions while protecting and enhancing opportunity for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity, and life support systems. Sustainable tourism products are products which are operated in harmony with the local environment, community and cultures, so that these become the permanent beneficiaries not the victims of tourism development. 28 By 2004, the World Tourism Organization provided a fuller definition of STD’s principles:29 1) Make optimal use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes and helping to

27 Trevor H. B. Sofield, Empowerment for Sustainable Tourism Development , 1st ed., Tourism Social Science Series (Amsterdam ; Boston: Pergamon, 2003). 60 28 UN Department of Economic and Social Affairs, Agenda 21 June 1992. 30. 29 UN World Tourism Organization, "Sustainable Development of Tourism: Conceptual Definition" http://www.unwto.org/sustainable/top/events.html

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conserve natural heritage and biodiversity. 2) Respect the socio-cultural authenticity of host communities , conserve their built and living cultural heritage and traditional values, and contribute to inter- cultural understanding and tolerance. 3) Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation. 30

The theory of sustainable tourism development seemed to offer solutions to all the ills of tourism development while retaining its benefits. However, sustainable tourism development appears to some scholars as if it is only about what “should” happen, without any prescriptive advice for success. Richard Sharpley argues that sustainable tourism development is only a theoretical model without practical application. He argues that the conceptual principles of sustainable tourism development cannot be transformed into a feasible, workable set of policies and practices relevant to the real world of tourism. 31 However, what some scholars regard as the

impracticality of STD is due to the fact that it will require a serious restructuring of tourism, in

many cases.

30 Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in all types of destinations , including mass tourism and the various niche tourism segments. Sustainability principles refer to the environmental, economic and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long-term sustainability. Sustainable tourism development requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable tourism is a continuous process and it requires constant monitoring of impacts , introducing the necessary preventive and/or corrective measures whenever necessary. Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful experience to the tourists, raising their awareness about sustainability issues and promoting sustainable tourism practices amongst them. 31 Sharpley.

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Walter Jamieson lists not only the principles of sustainable tourism, but also means to reach the goals mentioned. 32 These principles include the importance of community input and quality employment opportunities, local business leadership or linkage, a code of proactive for tourism management, impact assessment, education and training programs, and management of heritage and natural resources. Jamieson, Klanarongran, Sunalai, and Ross offer ample evidence that sustainable tourism development can be translated into practical recommendations for change in tourism planning and activity. From marketing to product development, design and site planning, practical changes can make tourism more sustainable for host communities. 33

At this time, sustainable tourism development theory remains in the minority. Most tourism projects are driven by the goal of profit. Local communities often remain uninformed of development plans in the early stages 34 . Bao and Sun suggest that within China, communities do

not have the participatory experience to direct tourism development for their own benefit, and

that local government should take over. 35 However, scholars such as Sofield argue that

sustainable tourism development can exist if practitioners focus on the need for more

participation or empowerment of local communities in tourism development. 36 Sofield in particular discussed the need to further research empowerment and disempowerment in different communities. 37

32 W Jamieson, Community Destination Management in Developing Economies (Routledge, 2006). 7 33 Ibid. 16-17 34 X Feng, "Who Benefits?: Tourism Development in Fenghuang County, China," Human Organization 67, no. 2 (2008). 35 Jiu-xia Sun and Ji-gang Bao, "On Tourism Anthropology Involving Community Participation: A Case Study of the Yulong River in Yangshuo [J]," Journal of Guangxi University For Nationlities (Philosophy and Social Science Edition) 1, no. (2005). 36 Sofield. 37 Ibid., 113, 349.

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Unfortunately, the empowerment idea flies directly in the face of the World Tourism

Organization’s approach. Although they discuss sustainable tourism, the WTO does not believe in a bottom up approach, because more public involvement in the planning process consumes time and can lead to conflicting objectives, policies and recommendations. 38 Some Chinese

scholars such as Li Wenjun feel the same way, given that local communities are rarely experts on

tourism. Within tourism research, a divide certainly exists between those who focus on an

economics-first model of development, as opposed to those who focus on sustainable tourism.

Sharpley falsely claims that STD is an impractical approach. Evidence from Jamieson

and Sofield’s research in the Asia-Pacific region provide examples of effective STD-based

approaches for forming a tourism council (a macro level solution), a national policy and tourism

development plan (meta level) and case studies of communities involved in tourism planning

(micro level). 39 However, both authors’ focus on community level participation represents an

insufficient interpretation of STD. The importance of economic concerns, especially the

inequality in resources and information for tourism development, must be addressed in a

practical manner for STD to succeed. Also, the focus on community participation assumes they

have the capacity for tourism development, whereas evidence suggests that outside expertise and

funding have contributed greatly to tourism development, especially in China. And, the

exploitation of local culture and environment are not addressed directly by Sofield or Jamieson’s

community-based approaches. Practical solutions to achieve STD will vary, since there are many

principles in this framework.

38 Ibid., 106. 39 Ibid., 334.

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In Huang and Hsu’s analysis of over 500 articles in the Chinese-language Tourism

Tribune from 2000 to 2005, they found that most focused on market research and trends, development and planning. Only 11.6 percent focused on resource preservation, ecotourism or sustainable development. Research on Chinese tourism focuses on the supply side issues

(attractions, development of sites, management, and planning). In many instances, tourism administrators published articles in their field, and the works were more like working reports than research papers and did not provide any citations. The papers were used to justify government policy, rather than as scholarly research.

Huang and Hsu suggest that tourism impact studies were only emerging recently. 40 Liu and Bao also suggest that tourism impacts on social and cultural environment in particular need further study. 41 Seeing this gap in the literature, this paper tries to examine tourism in China, and it utilizes the STD framework. The research on STD continues to evolve, but the basic considerations- economic, cultural, environmental and social effects – remain essential. By exploring the particular challenges and opportunities of each aspect of STD as it applies to China, the resulting analysis provides clues on making STD practical and useful for tourism development in China.

40 Songshan Huang and Cathy H.C. Hsu, "Recent Tourism and Hospitality Research in China," International Journal of Hospitality & Tourism Administration 9, no. 3 (2008). 41 Xiaobing Liu and Jigang Bao, "Development of the Researches on the Environmental Impacts on Tourist Development [J]," GEOGRAPHICAL RESEARCH 4, no. (1996).

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Methodology

As explained in the earlier section, the Chinese government has concentrated resources and created policies favorable to tourism development along the coast. Less tourism development has occurred for inland provinces. But, as development accelerates inland, many of the same tourism issues that have occurred elsewhere may arise for inland areas. Thus, this paper sees a prime opportunity to address the negatives of tourism development and inform a more sustainable tourism development model for future tourism projects. The author will use the framework of sustainable tourism development to assess the tourism situation in various cases studies throughout China by other scholars. Where possible, English-language sources from

Chinese scholars are utilized, given that the scholars have more accessibility to many of the newer tourism destinations being developed farther inland. Although the author has travelled to a number of the tourism sites, this work relies on secondary sources (the case studies) for data.

And, rather than relying on a single case study, the assessment of multiple cases allows for greater generalizability of results and recommendations in line with the sustainable tourism development framework.

Of course, a comprehensive assessment of tourism sites in China would be impossible given the scope of work involved. Yet, the information and analysis provided here can serve as useful information for tourists and scholars to consider. If inclined to care about any of the issues already mentioned, then this report can offer information to help tourists select more sustainable travel destinations, or be on the lookout for ways to act sustainably while traveling. The primary purpose of tourism for most people is enjoyment and leisure, possibly exploration of some new place or activity, but sustainability can compliment tourism’s primary purposes. The result of

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this work is not a list of sites which meet all sustainability criteria, but a list of important considerations to keep in mind when visiting any tourism site within China.

Results

When tourism development was promoted as a development strategy in the 1960s with great optimism, most impacts studies of tourism were positive. But, studies in the 1970s focused on the negative side, and then later research in the 1980s highlighted both aspects. Today, the rapid expansion of tourism globally has made the study of tourism quite complicated.

From research in other countries, it is clear that impacts of tourism are often diverse, with development often generating gains for some and losses for others. At times, tourism developed with the intention of benefiting local communities does not materialize, and profits are expatriated to foreign tour companies and operators as occurred in the Okavango Delta tourism plan in Botswana. Other times, purported linkages between tourism and demand for local agricultural goods does not materialize, as in the case of Cancun hotels and farms in the Yucatan peninsula. 42 Among scholars, the net effect of tourism has been debated for many years. In an

example from Sweden, Lindberg, Andersson and Dellaert performed an empirical evaluation of

tourism impacts. They found that while some residents gain from tourism while others lose, and

the net effect on the community was negative. They argue that tourists gain from expansion, but

their gains are not enough to outweigh the net losses for residents. 43 The following are some of the specific manifestations of harms associated with tourism development in China. The analysis

42 See JE Mbaiwa, "The Socio-Economic and Environmental Impacts of Tourism Development on the Okavango Delta, North-Western Botswana," Journal of Arid Environments 54, no. 2 (2003). and R Torres and JH Momsen, "Challenges and Potential for Linking Tourism and Agriculture to Achieve Pro-Poor Tourism Objectives," Progress in Development Studies 4, no. 4 (2004). 43 Kreg Lindberg, Tommy D. Andersson, and Benedict G. C. Dellaert, "Tourism Development: Assessing Social Gains and Losses," Annals of Tourism Research 28, no. 4 (2001).

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is structured by segmenting the main issue areas at the core of sustainable tourism development.

In each section, some case studies will provide empirical evidence of the harms of conventional tourism development and the need for STD to improve the situation. Other case studies will demonstrate how actions in line with the STD framework have successfully or unsuccessfully managed tourism.

Economic

Economic impact on tourism destinations has been given priority in tourism literature for decades. Although at times there were debates on evaluating tourism’s economic contribution, most of the time it was regarded as the key measure of project success. Tourism is regarded as a boon for the economy for the following reasons: stimulating infrastructure construction; stimulating tourism supply industries such as transportation, hotel, restaurant and retailing; attracting foreign investment; creating job and business opportunities; stabilizing the local economy; and stimulating export. At the same time, tourism has also created greater gaps in wealth, dead-end low-skilled jobs, and the leakage of income to foreign companies. 44

Within China, the rapid expansion of hotel chains, cruises, resorts and theme parks have generated high tourism demand. But, a high amount of leakage occurs as local communities do not control these businesses, and profits often leave the municipality or province. 45 Certainly,

infrastructure has improved in some provinces, but oftentimes it is only there to serve the needs

of tourists, and does not necessarily lead to secondary benefits for local businesses. 46 Practically

44 P Pattullo, Last Resorts: The Cost of Tourism in the Caribbean (Ian Randle Publishers, 1996); Pattullo, Last Resorts : The Cost of Tourism in the Caribbean ., Torres and Momsen., 45 Chung-Tong Wu, "Issues of Tourism and Socioeconomic Development," Annals of Tourism Research 9, no. 3 (1982). 46 BE Notar, Displacing Desire: Travel and Popular Culture in China (Univ of Hawaii Pr, 2006).

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speaking, communities have little power to stop the construction of hotel chains or tour operators despite the fact these organizations leak money out of the community. 47

Cases

1. Hongcun and Xidi

The comparative case study by Gu and Ryan between the two townships in Anhui province offers a lesson in sustainable economic development. Gu and Ryan argue that the state has a socioeconomic imperative to reduce rural poverty, which makes tourism an important part of potential economic development. 48 Both towns have been designated for UNESCO heritage

status. Both townships-village enterprises evolved out of the community and brigade enterprises

of the 1950s. Hongcun village has a famed water-supply system, based on the digestive system

of an ox. It was build in the Soong Dynasty, along with over 140 historic rural houses from the

Ming and Qing Dynasties. Thanks to publicity from the filming of Crouching Tiger, Hidden

Dragon in 2002, domestic tourists jumped from 6700 in 1992 to over 253900 in 2002. By 2006,

there were over 500 000 domestic visitors, as well as 20,000 international visitors.

Hongcun’s local government and the Huangshan Tourism Development Co. Jingyi Ltd.

entered into agreement in 1997 for the company to manage tourism exclusively. The agreement

was signed for 30 years. The original agreement allowed the company to keep 95 percent of

ticket sales. But, the villagers sued in 2001, resulting in a better deal. As a result, the company

retained solely responsible for tourism promotion, and revenues would be split, with two-thirds

going to the company and one-third going to the local Huangshan government. Out of the one-

third, the government would use two-thirds for infrastructure and development, and one third

47 Pattullo, Last Resorts: The Cost of Tourism in the Caribbean . 48 Huimin Gu and Chris Ryan, "Hongcun and Xidi: Rural Townships' Experiences of Tourism," in Tourism in China : Destination, Cultures and Communities , ed. Chris Ryan and Huimin Gu(New York: Routledge, 2009).

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(about one-ninth of the original revenue) would be kept by the Hongcun township. Then, the township would further split two thirds to infrastructure in Hongcun, and one third to the actual population. The focus is on economic gains, and development does not care about carrying capacities, only tourist numbers and expenditures. In Hongcun, the commercial partner only cares about tour and ticket sales, with little regard for the community. 49 Villagers are still

dissatisfied with this arrangement. 50

In contrast, Xidi’s Village Committee directed the growth of tourism within the village.

A local office was established, the Xidi Tourism Services, which refused to become part of the county tourism bureau. Visits in 1986 only numbered 147, but grew to over 600,000 in 2005.

Directly and indirectly, tourism provides about 80 percent of the jobs and income in the village.

As a result of tourism profits, the village could afford installation of tapped water and gas for the entire village. There are over 146 souvenir shops and 20 restaurants.51 Revenues have paid for

road construction, parking, viewing spots, tourism routes, as well as restoration and maintenance.

Most importantly, about 62 percent of tourism income remains within Xidi. 52

Xidi managed tourism locally, and the Village Committee represents the local

community’s views on how tourism should develop. The income for Xidi is four times the

average for Yixian County. Park and Minggao Shen found that outside financing was essential. 53

And initially, the local community could not get financial support from banks or the government.

Villagers willingly reinvested earnings to improve the village. The return on investment has been

49 Ibid., 265. 50 Ibid., 260-263. 51 T Ying and Y Zhou, "Community, Governments and External Capitals in China's Rural Cultural Tourism: A Comparative Study of Two Adjacent Villages," Tourism Management 28, no. 1 (2007). in Gu and Ryan. 52 Gu and Ryan., 263. 53 A Park and M Shen, "Joint Liability Lending and the Rise and Fall of China's Township and Village Enterprises," Journal of Development Economics 71, no. 2 (2003). in Gu and Ryan.

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highly positive, not only in terms of income, but new roads, school building and a local television station. Without being able to borrow from the bank, none of this could have happened. 54

2. Guizhou Province and Yunnan Province

John Donaldson compared the tourism development strategies of Guizhou and Yunnan provinces. His findings reflect on a larger scale the findings of Gu and Ryan in Hongcun and

Xidi. Yunnan’s tourism development was able to bring rapid economic growth, but it did not reduce rural poverty. Guizhou’s smaller industry did not provide strong macroeconomic indicators of growth, but managed to reduce poverty. 55 In Guizhou, the development strategy allowed for more equitable distribution of tourism. Many sites are located in the poor counties of

Guizhou, and there was also a focus on developing ethnic minority tourism, particularly for Miao villages. While Yunnan’s tourist sites were concentrated in urban areas, Guizhou’s sites were dispersed and located in poor counties, leading to more direct economic benefit to the poorer people and decreasing the provincial poverty rate. 56

Guizhou’s tourism was structured to provide opportunities for the poor to participate, while those in Yunnan were excluded. In Guizhou, the locals opened shops, sold snacks and handicrafts, and provided transportation on horseback. In Guizhou, the tourism strategy since

1992 was based on the newly adopted slogan: “The tourism industry promotes openness to the outside; use tourism to promote poverty reduction.” Guizhou was the first province to pronounce

54 Gu and Ryan. 265 55 John A. Donaldson, "Tourism, Development and Poverty Reduction in Guizhou and Yunnan," The China Quarterly 190, no. (2007). 56 Ibid.

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explicitly the goal of poverty reduction through tourism. 57 As a result, the projects focused on

rural participation, unlike in Yunnan. Residents were encouraged to develop small-scale

attractions. They developed the concept of “nongjiale” as an alternative to large hotels. People

stayed at local homes, and ate with locals. And, locals directly benefit from the sale of

handicrafts, instead of selling factory-made goods in a non-locally-owned store. There was not

the same costly high-grade infrastructure as in Yunnan either, but rather an improvement of local

roads, which benefited villagers as much as tourists. 58

In contrast, tourism development in Yunnan focused on an expensive paved road and restricted access to tourists. Locals could work for private companies, but were otherwise isolated from tourists. The large scale hotels, restaurants, performances, airports and major highways were profitable, but mainly for investors from Kunming (the capital), coastal provinces, and overseas. 59 Local residents, already excluded from the development phase, became low-

skilled laborers. As the tourism industry became more sophisticated in Yunnan, they did not have

the skills or education to compete for better jobs.

3. Other cases

In the Dai Village of Xishuangbanna in Yunnan province, tourism development has been

driven mostly by economic motives. Dai villagers have limited chance for growth. They run

restaurants, or provide accommodations. They also sell fruit, set up barbecue stands, sell clothes

and handicrafts, or find employment with companies and lease their land.

57 Ibid. 58 Donaldson 59 Donaldson.

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There have been successful cases where villages, with the support of local government, have developed tourism. In the case of the Zhuang ethnicity in Guangxi, one village was relocated to a scenic spot in 2002. Roads were built to connect the households. By empowering the local farmers, local government found a successful way to promote tourism while alleviating poverty. 60

Critics of sustainable tourism development argue that local communities do not have the power to make demands on tourism developers. From cases in Botswana, to the Caribbean to

Belize, local communities cannot stop tourism operators from setting up. But for host communities, the economic benefits of tourism can be gained several ways. Before tourism sites are built, there must be agreement on the terms of land deals, the proper compensation for relocations, and an assessment of the employment benefits of the project. Collective action can be undertaken.

Economic benefits from tourism may be concentrated or leaked out of an area; but, local people must negotiate carefully to control the industry or receive favorable deals with private businesses. A fair deal can ensure that profits are reinvested for the benefit of the community and the development of infrastructure and other needs.

60 Jianhua Feng, "Many Roads to Riches, Farmers in China's Southwest Have Developed Innovative Ways to Make a Good Living," Beijing Review (JANUARY 1, 2009). http://www.bjreview.com.cn/nation/txt/2008- 12/27/content_172223.htm.

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Social

Since the 1980s the social and cultural impacts of tourism have gained more research attention. Literature suggests that the rapid development of tourism had affected host communities positively and negatively. Positive impacts include better infrastructure such as recreational facilities and entertainment, improved police and fire protection, better community image and a sense of pride. But, negative impacts include a higher crime rate, pollution, traffic congestion unexpected changes in family values and other problems for the host community.

Some authors such as Krippendorf argue that tourism has colonial aspects because it takes away autonomy from locals. Social change can occur rapidly, such as the employment of Chinese rural women in tourism, changing their status in the household and the local community.

Cases

1. Hongcun and Xidi

In Hongcun, villages are dissatisfied because non-local guides are employed, and

villagers regard them as insensitive to their feelings. 61 Additionally, some have paid for licenses

to sell goods while others do it illegally, thus, tensions within the local community exist in

Hongcun as a result of tourism development.62 But, Hongcun’s advantage is that the citizens

have remained more privacy from the public outside of the work hours. Xidi’s small size and

centralized tourism means that tourists are always nearby. Gu and Ryan point out that local

Chinese communities lack experience of tourism planning and the awareness of potential

problems. One issue is that there is an imbalance in tourism participation, with some residents of

a given area benefiting more than their neighbors. And, residents are competitive when it comes

61 Gu and Ryan. 263 62 Ibid.265

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to dealing with tourists. The tourism developers from outside of the area did not think about the relations between residents when developing their plans, and tensions rose. In one instance, rat poison was used to poison chickens at a competitor’s restaurant. There are competing systems of national, provincial, municipal and local control of tourism, as well as private sector entrepreneurial and public control. There is little means to balance the economic need for tourism with the understanding of social and environmental impacts, and the ambition of parties who can gain from tourism. 63

2. Yunnan

For Yunnan Province, tourism has provided young people with well paying jobs. The townspeople are happy to have more income, better infrastructure and social status. Young people prefer working with tourists to a day spent in the fields doing physical labor. At the same time, older people despise the commoditization of historical sites and the forced relocation of some villagers. 64 The social barriers to community participation and benefit from tourism are locals’ limited capacity and lack of awareness about tourism impacts. Sometimes, the people are already excluded minority groups, or illiterate in Mandarin. Based on a long history of feudalism and top-down control, Chinese villagers lack social and economic empowerment. 65 To deal with the social impacts of tourism, it requires communities to deal with the influx of tourists in a controlled manner. Within China, the boom of tourism has allowed some cities to expand their tourism enterprises rapidly. Most developers for new tourism projects, especially in rural or inland China, are non-local Han Chinese developers who are well educated and experienced in

63 Ibid. 266 64 Notar. 65 Y Li, "Exploring Community Tourism in China: The Case of Nanshan Cultural Tourism Zone," Journal of Sustainable Tourism 12, no. 3 (2004).

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the industry. As the industry expands through the work of international firms and large-scale

Chinese developers, locals often end up with low-wage and/or low-skilled work. How can local

communities regain control of tourism and allow people to find quality work and training?

Additionally, Yunnan’s tourism development has concentrated on a few tourism hotspots,

rather than increasing dispersal of tourist sites throughout the province. This practice exacerbates

the intra-regional inequality of the area. Four

sites, the Stone Forest, Xishuangbanna, Dali and

Lijiang drew most of the province’s financial

and marketing resources. Central leaders from

Beijing and Foreign Direct Investors promoted

the concentrated model of tourism development.

They focused on large scale roads, restaurants,

hotels and restrooms. The sites were located in

the less poor, more urban areas of Yunnan,

which only increased inequality as tourism grew.

And, social instability can also affect locals. The

transformation of Lijiang changed the basic

economic system for the city. Over 35 percent

of original residents, many Naxi minority people, Figure 5 Local stores have a hard time competing with store owners who left and were replaced by merchants and others import cheap, mass-produced souvenirs between 1987 and 1999. 66

66 S Gruber, "Protecting China's Cultural Heritage Sites in Times of Rapid Change: Current Developments, Practice and Law," Asia Pacific Journal of Environmental Law 10, no. 3-4 (2007).

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The problem arising today is overdevelopment, as in Lijiang. There are over 2600 shops in a 2.7 square km area, selling the same crafts and souvenirs and other gift items, most of which is mass-produced in Guangzhou and exported to Yunnan. But, the profits don’t benefit locals, since they are structurally prevented from participating in the industry.

Locals rent out to foreign businesspeople from other provinces, mostly from the coast and Sichuan, and locals cannot provide competitive housing, since tourists have over 75 hotels nearby. While some young locals work as shop assistants, the structure of the industry means most profits leak out to investors and the wealthier people who have come to

Lijiang to set up profitable shops. Figure 6 Mass produced products sold by non- local Han salespeople bring in greater profits

In Dai village in Yunnan, Sun and Bao concluded that the company did not allow more than passive participation by the villagers’ in tourism development. Residents must not only participate in operations, but in policymaking, implementation and monitoring of tourism. 67

Despite claims that tourism is labor-intensive and cost-effective, Donaldson finds that it is capital

67 Jiu-xia Sun and Ji-gang Bao, "Tourist Anthropology Analysis on Community Participation——a Case Study of Dai Village in Xishuangbanna [J]," Journal of Guangxi University For Nationlities (Philosophy and Social Science Edition) 6, no. (2004).

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intensive, which high investment costs that prevent locals from working the market in Yunnan.

Developers can easily exclude poor people from participation in the industry, which contradicts the claim that tourism can decrease poverty. 68 The hotels imported most of their food and supplies from outside, reducing linkages with the local economy. And, the local governments were more focused on developing urban areas, and did not care about developing the countryside with proceeds from tourism.

3. Other cases

Often, local people are excluded from tourism activities, or at least from the tourist sites.

Developers can prohibit people from interacting with tourists, limiting the opportunity to earn income. For locals at one tourist site in Qinghai, they are often not allowed to walk near the tourism site, except for children who are in ethnic costumes and people employed in the site to take pictures. 69

Sometimes developers simply refuse to allow villagers to participate in the tourism development process, as happened at the Nanshan Cultural Tourism Zone. The local government adopted policies favorable to developers, excluding local peoples from the process.

Businesspeople thought of villagers as simpleminded, and felt that participation would be costly and time-consuming. 70 In Jiuzhaigou, the rise of family hotels was done quickly, and did not have market research behind it. Thus, too many hotels and mismanagement led to high

68 Donaldson. 335 69 Pál Nyíri, Scenic Spots : Chinese Tourism, the State, and Cultural Authority (Seattle: University of Washington Press, 2006). 77. 70 Li.

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competition and an uncomfortable atmosphere for tourists, who were hounded by locals. The administration stepped in to limit hotels and beds.71

For China, the answer to the social exclusion of locals from tourism will rely heavily on the role of the state. The Chinese government takes specific control for attracting investment and sometimes even operating tourism companies and attractions. Thus, planning experts must be informed about the need to pay attention to residents and advocate community participation of interested parties. They cannot sit back and only expect residents to participate as employees in the economic benefits of tourism. Sun and Bao argue that community participation will not possess the same relationship to STD as in the West. Sun and Bao conclude that since community participation is not a strong trend in China. The link is weaker, given that STD has

origins in Western practices of colonialism, democratization and capitalism. They argue that

China does not have a large-scale colonial expansion. (The scale and method of industrialization

is different, and the harms associated with socioeconomic growth cannot be exported to colonies.)

Thus, the internal costs of any development in China, including tourism, will be higher.

Community participation is nonexistent in some cases, and imbalances are wide given that

China’s focus is on the gains of tourism rather than the losses. 72 Li Wenjun also considered the focus on community decision-making as a factor, but not essential to STD. 73

Thus, government decision making must lead the way. Complicating the issue is government officials’ view of the community as foolish or ignorant and unable to deal with tourism. But, Bao and Sun offer hope that government officials can case aside these stereotypes

71 WJ Li, "Community Decisionmaking Participation in Development," Annals of Tourism Research 33, no. 1 (2006). 72 Sun and Bao, "On Tourism Anthropology Involving Community Participation: A Case Study of the Yulong River in Yangshuo [J]." 73 Li, "Community Decisionmaking Participation in Development."

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of locals and that community participation can grow and local people can become managers and supervisors, rather than employees in the tourism industry. 74 To promote STD, they advocate for a less condescending attitude toward community residents than currently used, and attention to resident concerns when developing tourism policy. 75 Even the business-focused World Travel and Tourism Council urges the China National Tourism Association to adopt pro-poor tourism development policies based on the idea of sustainability, and provide tax preferences to locals, and financial preference for loans from banks, and management and technical training. 76

Social costs of tourism in China are primarily the result of exclusion from the industry by local government officials and large-scale tourism developers. Government intervention, and policies favorable to locals, as well as more lending and training, will allow for greater, more fairly distributed income -earning.

74 Jigang Bao and Jiuxia Sun, "Differences in Community Participation in Tourism Development between China and the West," Chinese Sociology & Anthropology 39, no. 3 (2007). 75 Sun and Bao, "On Tourism Anthropology Involving Community Participation: A Case Study of the Yulong River in Yangshuo [J]." 76 China, China Hong Kong Sar and China Macau Sar: The Impact of Travel and Tourism on Jobs and the Economy , (World Travel and Tourism Council, 2006), 9.

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Cultural

The cultural impacts of tourism have been studied more recently, and conclusions tend to err on the negative side. Patullo argues that there is a need for tourism hosts to meet the cultural needs of guests in order to profit, thereby making their cultural norms second-class in their own community. 77 Some scholars also believe that the interaction with tourists will destroy local

cultures, while others believe that it will preserve local cultures because of the value for tourism.

At the personal level, interactions between hosts and guests can result in either scenario. Within

the larger tourist industries, people who work as service staff, or waiters, or drivers do lose some

of their autonomy when dealing with tourists. The goal is to meet the expectations of the tourist,

who could be from anywhere, and thus have an entirely different set of cultural norms. How can

more respect be placed for local culture if host communities are not respected?

The other major cultural issue is the commoditization of culture. In cases throughout Asia

and the Pacific, another pressing issue has been the rise of prostitution. Some women’s groups

consider it an expression of neo-colonial relationships. They regard the way in which tour

agencies, particularly European ones, advertise women as degrading. 78 Also, Wu writes that

groups in society may adopt the views of tourists with regards to other groups, leading to social

distortion or bias. 79

Cases

1. Yunnan

Unfortunately, the national and local governments are geared towards the

commoditization of minority culture and an attempt to create manufactured, “authentic” cultural

77 Pattullo, Last Resorts: The Cost of Tourism in the Caribbean . 78 Wu. 79 Ibid.

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experiences for tourists. Local governments treat minority groups as a way to showcase an interesting exotic product for tourists. Cultural products are often designed by outsiders, rather than by locals. In Yunnan, tourism often involves staged cultural shows. The actors are Han

Chinese dressed as minorities, and a combination of Han and Western music is substituted for local music to suit the tastes of the intended audiences. Rather than reflecting culture, tourism manipulates aspects of the local culture and changes it to turn a profit. In Lijiang, the outfits of local employees were a redesign of their traditional dress as a new, flashier version which would have more appeal to the tourists. 80

Arguable the most negative cultural impact of tourism is the stereotyping of minority

groups within China. There are theme parks in China devoted to minority cultures. These

minority parks reinforce the notion of superiority of the dominant Han Chinese majority. As

Nyiri and others have written, these parks serve to reinforce the notion of China as a diverse

country, while also making non-Han ethnicity groups appear primitive and backwards in

comparison. In local communities of the Dai, Bai, Tibetans, and others, their cultures are

exploited for the sake of profit. 81 Tourism sites in minority areas tend to create ethnic parks. Han

Chinese can view minority groups as “ethnic minorities” and exotic and fascinating others within

China. Sofield and Li discuss the ethnic festivals which exotify the group and incorporate them into the landscape as folkloric. 82 Certain minorities, like certain scenic spots created by the state,

80 Nyíri.75 81 Beth E. Notar, Displacing Desire : Travel and Popular Culture in China (Honolulu: University of Hawaii Press, 2006); Nyíri. 82 THB Sofield and FMS Li, "Tourism Development and Cultural Policies in China," Annals of Tourism Research 25, no. 2 (1998).

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become cultural references: Miao play the lusheng pipe, Mongolians always ride horses and wrestle, and Tibetans wear the hada shawls and have prayer flags. 83

How can the false stereotyping of groups be avoided in tourism, while it is so profitable? By

informing communities early of the potential for such abuse of culture, it is hoped that they will

avoid such enterprises in the future, or show skepticism of tourism projects which seek to

objectify local cultures.

2. Sichuan

Jiuzhaigou is associated with Tibetans, and as a dreamland or fairyland type of place with

waterfalls, emerald lakes, snowcapped mountains and Tibetan folklores. The Chinese have also

adopted the Western image of Tibet as a mystical and religious place. At the same time, Chinese

consider it another one of the happily backward minorities in China. 84

In Sichuan, there are Ethnic Customs Voyages (mingzu fengqing you) which romanticize

the Tibetans and Qiang. Guides for tour groups will refer to them as backwards, and refer to the

poverty as part of their culture. One tour guide referred to the area as extremely poor --where

minority people dislike hygiene, when they passed through a village while traveling. 85 However, that logic did not apply to the minorities in the performance space set up later on the tour. Other stereotypes, such as those of minority men as virile, strong, or prone to drinking were part of the entertainment of the evening, which included many folk dances about the highly sexualized minority women. In truth, the songs were variations on Western and mainstream Chinese

83 Nyíri. 16. 84 Ibid. 28 85 Ibid. 34

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music. 86 The minority parks offer indoctrination into the idea of China as a harmonious

multiethnic society. 87 They are another instance of the central government exercising its cultural authority. 88

3. Other cases

The minority villages of Guizhou also serve to fossilize minority culture and traditions and using them as exhibits. 89 Oftentimes the local government clash with the national level.

Those officials at the local level favor more development, whereas national officials have a bit more pro-conservation approach.90

However, there is room for optimism that local communities will prioritize heritage over short term profits.

In Guizhou, the Dong ethnic group has managed to preserve part of its heritage by resisting the overbuilding and excessive development of hotels. 91 In

Upper Langde, a Miao Village offers

rural home stays and local attractions.

Unlike other sites, the local village set a

fee for the China International Travel

86 Ibid. 39-41 Figure 7 Zhuang women sell handicrafts at 87 Ibid. 76 a small tourism site in Guangxi 88 Ibid. 108 89 Ibid. 74 90 Ibid. 75 91 Ibid. 57

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Service to pay for visiting. Twenty percent goes to expenses but 80 percent is kept by the villagers who work in the tourism industry. The sale of food and crafts is direct, so locals have more control over the terms of their work.92

Unfortunately, minority people possess limited control of resources. They often cannot

compete with Han tourism developers who have better education and funding. Training for

tourism often focuses on services rendered to tourists, rather than an educational approach to

improve the economic self-reliance of local peoples. Education must be a priority when it comes

to tourism. Local people must learn to develop tourism, market it, and preserve their cultural

traditions. Governments must rethink their strategy and provide more help to local businesses.

Tax incentives and preferential policies for community based and villager controlled businesses

are needed. 93 Li and Wall argue that local resources should be regulated to protect them from

non-local investors who do not care about the impact of their altered performances on the locals

or tourists’ perceptions of locals. It is difficult to prohibit non-local businesses. Rather, Li and

Wall advocate initiatives for financial support, education and information sharing for local

entrepreneurs so they can compete with Han business people. 94

The cultural issues surrounding tourism and rights of locals and minority groups will only

become more relevant in the coming decades, as more tourism development occurs in Xinjiang

Province (home to many Muslim minorities), Tibet autonomous region, Yunnan (home to over

26 different minority groups, and other inland parts of China only recently opening to

92 Donaldson. 93 L Yang, G Wall, and SLJ Smith, "Ethnic Tourism Development::: Chinese Government Perspectives," Annals of Tourism Research 35, no. 3 (2008). 94 L Yang and G Wall, "Ethnic Tourism and Entrepreneurship: Xishuangbanna, Yunnan, China," Tourism Geographies 10, no. 4 (2008).

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tourism.

Culturally, the exploitation of minorities and the commoditization of culture through tourism performances and the sale of souvenirs do not benefit the host communities. Stereotyping of non-Han minorities reinforces the notion of Han Chinese superiority and reasserts cultural power. Host communities, sometimes with government support, seek resources to develop local businesses and promote tourism on their terms.

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Environmental Of all issues, environmental concerns in tourism are the least considered when discussing

STD in China. The environmental degradation problem is worsening as tourism continues to grow at a rapid pace. Those who cause environmental problems by exploiting natural resources for tourism often do not pay the economic or social costs. With regards to tourism it is a true tragedy of the commons, as tourism developers rush to build tourist sites, cable cars, hotels and other amenities in once pristine locations in China. Overcrowded sites quickly become trash sites, and developers move on, leaving trash to pollute the area. 95 While research has been undertaken to promote the economic, social and cultural aspects of sustainable tourism development, the environmental concerns have not been as widely discussed.

Cases

Nature Reserves

One area for tourism is nature reserves. Tourism has developed in about 80 percent of reserves since the early 1990s, and 15.9 percent of the sites have more than 100,000 visits annually. As national incomes rise, more visitors are expected. The number of tourists can heavily impact the local environment. In Jiuzhaigou, there were hundreds of vehicles used by locals to carry tourists, which caused major air pollution, before the introduction of green buses by local administration. 96 Some, such as the Bita hai reserve, have an environmentally friendly

bus. Yet, the site is controlled by the local government, and people living nearby see little

benefit. In Napa hai, the local Tibetans can offer to be guides through the wetlands, but give up

most of the profits to the owners of the site. Another issue is the development of tourism which

encroaches on farmland, in order to construct town squares or hotels for tourists.

95 J Wen, "Evaluation of Tourism and Tourist Resources in China," Economics 25, no. 2/3 (1998). 96 Li, "Community Decisionmaking Participation in Development."

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One example from the Ordos Relict Gull Reserve in the Inner Mongolia suggests that conventional wisdom stipulating that economic growth through ecotourism would lead to environmental sustainability has failed. The development of ecotourism ruined the nature-reserve sustainability, given that it was already an environmentally fragile region. Based on water and soil sampling and satellite images, Zhang et al. identified harmful changes to the reserve. In fact, the gulls which tourists flocked to see were no longer going to the reserve due to ecotourism development. The gulls had established new colonies in northern Shaanxi. In this instance, the unsustainable practice of ecotourism, based on the conventional wisdom that economic development spurs environmental protection (the environmental Kuznets curve), destroyed the site as a tourist destination and home for the gulls. Based on the findings, Zhang et al. called for prohibitions on tourism in fragile nature reserves.97

The environmental concerns of tourism development require more attention than currently given. Based on existing evidence, tourism causes degradation and pollution, especially as sites become overcrowded. For nature reserves and fragile ecological systems, a limit should be set on tourism.

97 Z Zhang, L Liu, and X Li, "Ecotourism and Nature-Reserve Sustainability in Environmentally Fragile Poor Areas: The Case of the Ordos Relict Gull Reserve in China," Sustainability: Science Practice and Policy 4, no. 2 (2008).

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Conclusion

China will become the world’s top tourism destination by 2015, and it already has more than one billion domestic visitors per year. As the industry grows, the economic, social, cultural and environmental consequences cannot be ignored. An understanding of the sustainable tourism framework provides a useful tool of analysis and a means of addressing tourism impacts. Based on case studies throughout China, the obvious conclusion is that structural change in the tourism industry needs to occur for local communities to see more benefits from tourism. At most tourism sites, economic leakage occurs because local officials prefer policies favorable to larger, non-local businesses. Businesses prefer not to consult with local communities, since it takes time and they regard locals as simpleminded. To support the health of the local economy, the local and national government officials must play a role in providing financial assistance to local businesses that want to benefit from tourism. Social barriers such as the lack of education and experience in tourism planning prevent locals from competing successfully with non-local business developers. Once again, the state must adopt a more positive attitude toward community participation, rather than regarding locals as backwards. The government must proactively encourage education and build capacity for communities to participate in tourism planning, rather than allowing people to become small parts of outsiders’ development plans. Culturally, exploitation of rural and minority groups by businesses and government must be mitigated by greater financial and technical support for local entrepreneurs, who can better present their culture as more than stereotypes for tourists. Ultimately, concerted efforts can solve many of the economic, social and culture problems associated with tourism development in China to make it more sustainable in these areas. Environmental degradation continues unabated as tourism development continues to expand rapidly in China. This facet of sustainable tourism

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development still requires more attention from all parties. If implemented properly, a sustainable tourism framework can address the economic, social, cultural and environmental harms of tourism.

Future Research and Plans Broader research and dissemination of information about STD to the parties involved would be a practical next step. Research should focus on a more systematic analysis of tourism impacts, based on the STD framework, since there are far more qualitative than quantitative studies of tourism in China. In order to do more than talk about STD, the research should be provided to practitioners of tourism. A guide for STD in China would be extremely useful, given that the country will become the world’s top tourism destination within five years.

The information and recommendations in this report provides steps for governments, business and local peoples. But tourists also play an important part in the promotion of STD.

Further research should also be used to inform tourists about issues of STD in China. Tourism practitioners worldwide have provided guides to sustainable tourism projects. Books such as The

Ethical Tourism Guide and the Community Tourism Guide are collaborations of local communities with tourism scholars to promote tourism enterprises that value community empowerment. 98 These books look at responsible, community-based tourism and provide a guide to understanding and identifying sustainability-minded operators of tourism. They offer both practical guides to products available in the industry and a theoretical understanding of STD issues. The books promote and market responsible travel and community-based tourism. It does so by providing a direct line of communication between the potential tourist and service

98 See M Mann, The Community Tourism Guide: Exciting Holidays for Responsible Travellers (Earthscan/James & James, 2000); Polly Pattullo, The Ethical Travel Guide : Your Passport to Exciting Alternative Holidays (London ; Sterling, VA: Earthscan, 2009). and

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providers or agents. The goal is not to applaud only one niche of tourism focused on community benefit, but to show how the principle can be incorporated into mass tourism. In addition, several websites exist that promote responsible tourism in China, alternative tourism, and ecotourism.

These efforts represent a growing shift in the personal relationship between tourism suppliers and local communities. As local communities look to promote tourism, they should work directly with scholars and tourism practitioners who work on such guides. Building on this report through further large-scale quantifiable research on tourism impacts in China would be a useful step in providing more information to the public on STD. The collaboration is beneficial to both parties and the goal of shifting STD into the mainstream.

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Honors Capstone | Han Chen

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Honors Capstone | Han Chen

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Honors Capstone | Han Chen