Evaluating Rural Tourism Operators' Satisfaction

論文総合観光学会誌『総合観光研究』第 19 号 2021 年 3 月 Japanese Journal of Tourism Studies,No.19 March 2021

Evaluating Rural Tourism Operators’ Satisfaction: Evidence from Taining, Fujian Province, China

Ruying WANG  Kumar BHATTA  Yasuo OHE 

Abstract: Although rural tourism (RT) can contribute to reducing the rural-urban economic gap by providing additional opportunities for income, literature on the topic is limited, particularly in developing economies. Thus, firstly we investigated this issue by a fixed-effects model of panel data at the semi-micro level focusing on eight districts of Fujian province, China. Results revealed that when the GDP of tourism increased in rural areas, the rural- urban income gap became smaller. Secondly, by a binary logit model applied at the micro-level from our surveyed data in Taining county, Fujian province, we investigated the factors contributing to operators’ satisfaction and incomes. The results showed that those RT operators who have RT income from 10% to 30% of their total have repeat visitors and are more satisfied. Operators with only a primary school education are less satisfied with their RT operation. Operators who desire to improve service quality, have their own business and have easily accessed farms derive more income from RT. At the same time, it is important for operators to balance tourism activities with other farm activities due to constraints on managerial resources.

Keywords: rural tourism, fixed effect model, income gap, operator’s satisfaction, China

1. Introduction popular throughout the country in the 1990s. Rural tourism (RT) has many advantages not Considering that the income gap between urban only in monetary terms but also by providing and rural areas has become increasingly larger other benefits to rural areas and its residents. in China (Lu and Chen, 2004), the current study For instance, Su (2011) reported that RT had a has two objectives. Firstly, it aims to verify positive effect on increasing farmers’ revenue by whether tourism has the effect of reducing providing a supplementary income. Further, income inequality between rural and urban Perales (2002) mentioned that RT played an regions, although it has been shown to be essential role in the development of rural areas effective in increasing rural people’s revenue that were economically and socially depressed. (Mahadevan and Suardi, 2019; Ohe, 2020; pp.4- However, quantitative studies on the economic 6). To investigate this question from a semi- impact of RT are still limited despite a growing micro perspective in Fujian province, China, we number of case studies. used a set of panel data. Rural areas of Fujian In China RT is called Nongjiale, which province have an accumulation of RT operators literally means “happy farmers’ home” (Park, although rural resources are not fully utilized 2014). Farmers host guests using their own for RT. houses and supply rustic foods that are Secondly, this study aims to investigate RT traditional and eco-friendly and gain benefits operators’ satisfaction that would enhance their from RT. RT first appeared in the 1980s in motivation and utilization of resources because Chengdu, Sichuan province; then it became motivation is a crucial factor in raising the

 Master student, Department of Food and Resource Economics, Chiba University, Chiba, Japan  PhD student, Department of Food and Resource Economics, Chiba University, Chiba, Japan  Professor, Department of Agribusiness Management, Tokyo University of Agriculture, Tokyo, Japan 1

- 1 - potential of local resources (Ohe, 2020; pp.233- (Lu and Chen, 2004). Lu and Chen (2004) improvements in the infrastructure and efforts 253). Further, highly motivated operators are further revealed that the economic open-door toward environmental protection would be more capable of resource management (Ohe, policy had a positive effect on increasing the effective in increasing the number of tourists. 2020; pp.87-105). Hence, the second part of this urban-rural income gap, while the Results of these studies showed that the quality study investigated the satisfaction of RT modernization of agriculture decreased the of RT products, transportation and the operators and the determinant factors based on income gap. Income generation through RT environment affect tourists’ satisfaction. data derived from a questionnaire survey of RT might contribute to minimizing the regional In summary, from the literature review, we operators in Fujian province. Finally, policy economic gap and is an important matter to be could understand that tourism has a positive implications are suggested. investigated. effect on improving farm operators’ income in rural areas. It was also pointed that rural 2. Literature review 2.2. Supply-side studies tourism work can help expand the operator’s 2.1. Studies on income gap There are few quantitative studies on the network, which is a positive factor in increasing With the diffusion of RT, studies on the benefits supply side that deal with factors related to RT operator’s satisfaction. Transportation is also Figure 1. Trend of disposable income in urban of such tourism have been conducted. Krakover operators. Konishi and Ohe (2016) clarified that an essential factor in the expansion of RT. and rural area in Fujian province (2004) stated that tourism’s influence on the degree of customer satisfaction is the most Therefore, in this study, we investigated the Note: CPI-deflated data is used here, 2007=100 Source: Fujian Statistics Bureau regional development, particularly on the significant factor for increases in satisfaction of impact of RT on the rural economy and factors mountains. Taining county, which is rich in income gap issue, is one of today’s most complex rural restaurant managers. Ohe (2020) revealed that affect RT operators’ satisfaction and natural resources, is located in northwest research topics in this field. Li et al. (2016) that by performing tourism activities a farm income. We also examined the roles of Fujian. Its core scenic spots are the World noted that tourism is closely related to other operator’s network expands, which increases transportation in RT. Geological Park and Lake Dajin, and it has a economic sectors such as agriculture and the operator’s satisfaction, which eventually unique Danxia landform. Taining government retailing and that its development affects the leads to more utilization of local resources. 3. Methods started to develop RT beginning in 1994 in this rest of the economy. Additionally, Li et al. (2016) Sharpley and Vass (2006) reported that usually 3.1 Study area: Taining county region. Thus, we chose this county as a study area. revealed that tourism could be used as a tool to female counterparts in the farm operation are This study was conducted in Fujian province The proportion of tourism GDP to Taining’s alleviate poverty in rural areas and to reduce responsible for the tourism business and that located in southeast China, facing Taiwan total GDP increased from 20.38% in 2008 to the income gap among regions. Chen et al. (2016) tourism brings them job satisfaction and a sense across the sea. It has abundant tourism resources like a sea view and glorious 42.98% in 2018. Zhao et al. (2009) mentioned showed that Nongjiale in China has positive of independence. However, these studies did not effects on improving farmers’ income and thoroughly discuss what factors affected an increasing the employment rate. Kumar et al. operator’s satisfaction and income by (2012) and Mahadevan and Suardi (2019) performing tourism activities in rural areas. indicated that tourism growth failed to reduce Therefore, in this study, we investigated the the population of poor people; however, they did determinants of RT operators’ satisfaction, prove that the growth of tourism reduced the which would lead to better management of local income gap between rural and urban areas. resources in rural areas. Although tourism has many positive influences in solving problems in rural areas, whether 2.3. Demand-side studies tourism can reduce the inter-regional income Ge and Ohe (2011) mentioned that the quality gap has not been thoroughly investigated yet. of agricultural products provided by the supply Much research has focused on side affected tourists’ satisfaction and that the determining what impacts the rural-urban public’s requirements regarding both the income gap. The ratio of per capita income of the environment and transportation in a rural area urban area to the per capita income of the rural are stringent. Zhou et al. (2008) found that rural area is usually used to explain the urban-rural tourists who visited Zhuzhou City in China income gap (Liu and He, 2019). Urbanization were not satisfied with the rural environment also has influenced the urban-rural income gap and infrastructure and suggested that Figure 2. Attributes of the respondents (Source: The authors’ survey, March 2019)

2 3

- 2 - potential of local resources (Ohe, 2020; pp.233- (Lu and Chen, 2004). Lu and Chen (2004) improvements in the infrastructure and efforts 253). Further, highly motivated operators are further revealed that the economic open-door toward environmental protection would be more capable of resource management (Ohe, policy had a positive effect on increasing the effective in increasing the number of tourists. 2020; pp.87-105). Hence, the second part of this urban-rural income gap, while the Results of these studies showed that the quality study investigated the satisfaction of RT modernization of agriculture decreased the of RT products, transportation and the operators and the determinant factors based on income gap. Income generation through RT environment affect tourists’ satisfaction. data derived from a questionnaire survey of RT might contribute to minimizing the regional In summary, from the literature review, we operators in Fujian province. Finally, policy economic gap and is an important matter to be could understand that tourism has a positive implications are suggested. investigated. effect on improving farm operators’ income in rural areas. It was also pointed that rural 2. Literature review 2.2. Supply-side studies tourism work can help expand the operator’s 2.1. Studies on income gap There are few quantitative studies on the network, which is a positive factor in increasing With the diffusion of RT, studies on the benefits supply side that deal with factors related to RT operator’s satisfaction. Transportation is also Figure 1. Trend of disposable income in urban of such tourism have been conducted. Krakover operators. Konishi and Ohe (2016) clarified that an essential factor in the expansion of RT. and rural area in Fujian province (2004) stated that tourism’s influence on the degree of customer satisfaction is the most Therefore, in this study, we investigated the Note: CPI-deflated data is used here, 2007=100 Source: Fujian Statistics Bureau regional development, particularly on the significant factor for increases in satisfaction of impact of RT on the rural economy and factors mountains. Taining county, which is rich in income gap issue, is one of today’s most complex rural restaurant managers. Ohe (2020) revealed that affect RT operators’ satisfaction and natural resources, is located in northwest research topics in this field. Li et al. (2016) that by performing tourism activities a farm income. We also examined the roles of Fujian. Its core scenic spots are the World noted that tourism is closely related to other operator’s network expands, which increases transportation in RT. Geological Park and Lake Dajin, and it has a economic sectors such as agriculture and the operator’s satisfaction, which eventually unique Danxia landform. Taining government retailing and that its development affects the leads to more utilization of local resources. 3. Methods started to develop RT beginning in 1994 in this rest of the economy. Additionally, Li et al. (2016) Sharpley and Vass (2006) reported that usually 3.1 Study area: Taining county region. Thus, we chose this county as a study area. revealed that tourism could be used as a tool to female counterparts in the farm operation are This study was conducted in Fujian province The proportion of tourism GDP to Taining’s alleviate poverty in rural areas and to reduce responsible for the tourism business and that located in southeast China, facing Taiwan total GDP increased from 20.38% in 2008 to the income gap among regions. Chen et al. (2016) tourism brings them job satisfaction and a sense across the sea. It has abundant tourism resources like a sea view and glorious 42.98% in 2018. Zhao et al. (2009) mentioned showed that Nongjiale in China has positive of independence. However, these studies did not effects on improving farmers’ income and thoroughly discuss what factors affected an increasing the employment rate. Kumar et al. operator’s satisfaction and income by (2012) and Mahadevan and Suardi (2019) performing tourism activities in rural areas. indicated that tourism growth failed to reduce Therefore, in this study, we investigated the the population of poor people; however, they did determinants of RT operators’ satisfaction, prove that the growth of tourism reduced the which would lead to better management of local income gap between rural and urban areas. resources in rural areas. Although tourism has many positive influences in solving problems in rural areas, whether 2.3. Demand-side studies tourism can reduce the inter-regional income Ge and Ohe (2011) mentioned that the quality gap has not been thoroughly investigated yet. of agricultural products provided by the supply Much research has focused on side affected tourists’ satisfaction and that the determining what impacts the rural-urban public’s requirements regarding both the income gap. The ratio of per capita income of the environment and transportation in a rural area urban area to the per capita income of the rural are stringent. Zhou et al. (2008) found that rural area is usually used to explain the urban-rural tourists who visited Zhuzhou City in China income gap (Liu and He, 2019). Urbanization were not satisfied with the rural environment also has influenced the urban-rural income gap and infrastructure and suggested that Figure 2. Attributes of the respondents (Source: The authors’ survey, March 2019)

2 3

- 3 - that although Taining’s RT increased quickly, Zapata et al, 2011). The estimation model is: (Figure 2). than others. its tourism products still lack local Regarding city i (i = Fuzhou, Quanzhou, Amoy, Similarly, income from RT may be characteristics. Also, it is a common Putian, Nanping, Sanming, Zhangzhou and influenced by internal and external factors phenomenon that in every part of China there Ningde) and year t (t = 2007, 2008, 2009, …, (Figure 4). Inter-operator relationships and is an income gap between rural and urban areas. 2018) accessibility of the farmhouse are considered as

We observed this widening regional gap in Yit = 0+ 1Xit1+ 2Xit2+ 3Xit3+ 4Xit4+Zi+ it （） external factors while the motivation for Fujian province as well (Figure 1). where, 1 performing RT work and significance of tourism � � � � � � Yit = income disparity index (income per work are internal factors for RT income. 3.2 Data resident in urban area/income per resident Primary and secondary data were utilized in in rural area) this study. The secondary data for 8 districts Figure 3. Factors affecting operators’ satisfaction Xit1 = foreign trade value (yuan) (Fuzhou, Quanzhou, Amoy, Putian, Nanping, Xit2 = GDP of first industry per capita (yuan) Sanming, Zhangzhou and Ningde) in Fujian For the selection of explanatory variables Xit3 = Urbanization rate (percentage) province from 2007-2018 were taken from the for satisfaction by RT operators, we assumed Xit4 = GDP from tourism per capita (yuan) Bureau of Statistics of Fujian province. that internal and external factors impacted i = parameters to be estimated ( 0 = constant), Considering the increasingly inflated prices in these factors (Figure 3). Thus, the operator’s (i=1, 2 , … , m) China, we used the Consumer Price Index (CPI) � � network and RT promotion are considered as it = error term to deflate nominal data series into real values external factors, while the operator’s self Figure 4. Factors affecting RT income Zi = fixed effect (base year: 2007). � attributes and income from RT are recognized The estimation model of income level, Model II, For the primary data, a questionnaire as internal factors that might contribute to RT Micro perspectives operator’s satisfaction. is below: survey was conducted by the authors from A binary logit model was employed for the local Ln{y/(1-y)} = 0+ 1x1+ 2x2+ 3x3+ 4x4+ （） March 3rd to 5th, 2019 in Lake Dajin area located The estimation model of operators’ satisfaction, level estimation. First, the explained variable where, 3 in Taining county. A total of 35 samples were Model I, is generalized below: � � � � � �� was the RT operators’ satisfaction, according to y= income of RT exceeds 30 thousand yuan collected by visiting the farms. More than two- Ln{Y/(1-Y)} = 0+ 1X1+ 2X2+ 3X3+ 4X4+ （） a Likert scale of 1 to 5, with 5 indicating (yes=1, no=0) thirds of the respondents were female. Other where, 2 satisfaction; 4, slightly satisfied; 3, do not know; � � � � � �� x1= relationship with neighboring operators is Y = operator’s satisfaction (yes=1, no=0) attributes of the respondents are presented in 2, not very satisfied; and 1, not satisfied. very good (yes=1, no=0) Figure 2. X1 = Income share of RT is 10%-30% However, we followed the methods of Ohe and x2= transportation is convenient (yes=1, no=0) (yes=1, no=0) Kurihara (2013) and Bhatta et al. (2019) and x3= want to improve quality of service X2 = network has been expanded (yes=1, no=0) 3.3. Estimation methods integrated the original data into binary data (yes=1, no=0) X3 = most new guests are introduced by We conducted two types of estimations, the (satisfied → yes=1, other answers → no=0) x4= want to have own business (yes=1, no=0) repeaters (yes=1, no=0) semi-micro estimation for the regional level and because preliminary statistical tests did not x5= RT work is very meaningful (yes=1, no=0) X4 = primary school education (yes=1, no=0) the micro estimation for the local level. show any statistically acceptable results. αi = parameters to be estimated (α0 = constant), i = parameters to be estimated ( 0 = constant), Second, according to some previous (i = 1,2, 3, …, m) (i = 1, 2, 3, …, m) Semi-micro perspectives research and based on the present income level � � = error term i = error term By using secondary data, a semi-micro level in the local area, income from RT, which was the � estimation was conducted using a fixed effects second explained variable, was mapped into five � 4. Results and discussion The variable X1 in this model was originally model and random effects model to identify stages: <10,000 RMB, 10,000–30,000 RMB, 4.1. Estimation results of semi-micro data measured in 6-stages as (below 10%, 10-30%, whether tourism activities can reduce income 30,000–50,000 RMB, 50,000–100,000 RMB Table 1 shows the results of estimations from 30-50%, 50-70%, 70-90% and over 90%). Where equality between urban and rural areas. A and >100,000 RMB. This variable was also the semi-micro perspective. Using the Wald test 10-30% itself was 41.2%. Therefore, we converted into a binary variable as >30,000 for heteroskedasticity, we found that Hausman test was conducted to verify the more transferred the original data into a binary RMB →yes=1, others →=0. To create the binary heteroskedasticity existed; therefore, log suitable model. We did not perform a unit root variable as 10-30%=1, otherwise=0. After variable, we selected 30,000 RMB as the transformation was used. The Hausman test test because we had panel data for only 12 years variable transformation, we used the trial-and- borderline value because 51.4% of respondents indicated that the fixed effect model was more and conducting a unit root test required data error process and selected this variable as a best over a longer span (Chen, 2014; Cochrane,1991; reported an income level below 30,000 RMB 4 5

- 4 - that although Taining’s RT increased quickly, Zapata et al, 2011). The estimation model is: (Figure 2). than others. its tourism products still lack local Regarding city i (i = Fuzhou, Quanzhou, Amoy, Similarly, income from RT may be characteristics. Also, it is a common Putian, Nanping, Sanming, Zhangzhou and influenced by internal and external factors phenomenon that in every part of China there Ningde) and year t (t = 2007, 2008, 2009, …, (Figure 4). Inter-operator relationships and is an income gap between rural and urban areas. 2018) accessibility of the farmhouse are considered as

- 5 - Table 1. Estimation Results (semi-micro data) Moreover, the government should also offer improve quality of service and desire to have Y= Income disparity index building good relationships with tourists and Random effects Fixed effects neighboring operators are important for RT support to operators with a low level of their own business) had significant positive Explanatory model model operations. It is necessary for operators to education. From the estimated marginal effect, values at 10% and 5%, respectively. From these variables Coefficient Coefficient findings, we can assume that when operators increase capabilities in guest management to the income share from RT was the highest (z value) (t value) feel that RT activities are very meaningful, it acquire repeat visitors. contributor, followed by educational experiences Foreign trade value 0.0022 - 0.0060 would help increase their income and provide per capita (0.06) (- 0.12) Similarly, operators who had RT income and network-related variables for RT operators’ GDP of primary - 0.0760** 0.0418 positive feedback on their daily tasks related to shares of 10% – 30% were more satisfied with satisfaction. industry per capita (- 2.46) (0.44) RT. Highly motivated operators could be 0.0561 - 0.0657 their RT operation at the 5% significance level expected to have higher incomes. Urbanization rate Table 3. Determinants of RT operators’ income (0.27) (- 0.30) than those with other income shares. During (Logit model II) GDP from tourism - 0.1038*** - 0.1192*** the field survey, we found that most RT 5. Conclusion per person (- 4.01) (- 4.04) y= Income of RT exceeded 30 thousand yuan 2.3628*** 1.1588** operators considered the RT operation as a side (yes=1, no=0) Two sets of data were used to investigate the Constant (4.23) (2.03) occupation. Therefore, an RT income share of Explanatory Coeff. Mar. effect effects of RT and determinants of RT operators’ VIF Note: ***, ** correspond to 1% & 5% significance. 10% – 30% was in the comfort zone wherein variables (z value) (z value) satisfaction and income in Fujian province, Source: Fujian Bureau of Statistics, 2019. Relationships operators could balance their regular work with China, from semi-micro and micro perspectives. between operators 3.4433** 0.2926*** 1.05 From the estimations using the fixed effects the RT operation and family life. At this stage, are very good (2.16) (3.58) reasonable. The GDP of tourism per capita had model, the results revealed that RT activity rural resources are not fully utilized. To utilize (yes=1, no=0) a negative value with statistical significance Transportation is contributed to reducing the income gap between the rural resources fully it is crucial to increase 2.4531* 0.2084** (1%). This indicated that when the GDP from convenient 1.09 urban and rural areas. Thus, it is effective to the number of full-time RT operators. Primary (1.73) (2.31) tourism increases in rural areas, the income gap (yes=1, no=0) develop tourism, especially in rural areas, to Desire to improve school education level was a negative parameter 3.1472* 0.2674*** narrow that income gap. However, from the between urban residents and rural residents quality of service 1.15 with 10% significance, indicating that less- (1.88) (2.56) would be smaller. This is strong evidence that (yes=1, no=0) micro perspective, we found that rural educated operators had lower business Desire to have own resources were not fully utilized for RT engaging in RT can help achieve the goal of 5.7363** 0.4874*** satisfaction. It can be assumed that their business 1.04 purposes. Therefore, increasing the number of income equality. Thus, it is necessary to (1.99) (2.93) management capability should be improved. (yes=1, no=0) full-time RT operators not only would enhance investigate further the possible benefits of RT. RT work is very 3.4520** 0.2936*** the potential of RT but also increase rural meaning 1.16 (2.12) (3.49) Table 2. Determinants of RT operators’ (yes=1, no=0) resource utilization for RT purposes because RT 4.2. Results of estimations of micro data satisfaction (Logit model I) - 7.3712*** operators prefer engaging in RT as a part-time Constant − − The highest variance inflation factor (VIF) Y= Operation satisfaction compared with past work (- 2.56) job at present. Having a greater number of full- (yes=1, no=0) generated from the ordinary least square Note: ***, **, * correspond to 1%, 5%, 10% time RT operators in a destination signifies that Explanatory Coeff. Mar. effect VIF significance, respectively, RT= rural tourism. VIF is method was 1.23 for model I and 1.16 for model variables (z value) (z value) the destination has promoted tourism as a main calculated by OLS. Network was source of income. A destination which receives II; values less than 10 mean there is no 2.1522* 0.2238** Source: The survey by the authors, March 2019. expanded by doing 1.23 multicollinearity between the explanatory (1.69) (2.05) more income from tourism promotes tourism in RT (yes=1, no=0) farm diversification. According to Taining variables. Similarly, the Pseudo R2 were 0.5213 Most new guests Income: Model II Bureau of Statistics (2019) tourism share in are introduced by 3.0995** 0.3223*** and 0.6105 in model I and model II, respectively. 1.03 Table 3 summarizes the determinants of RT repeat visitors (2.14) (3.17) total GDP in 2018 was 43.0% and this survey Further, no heteroscedasticity was detected in (yes=1, no=0) operators’ income (Model II). A found that 45.7% of the RT operators earn only either model (used OLS), and the robust Income share of RT good relationship with neighbor operators had 3.7362** 0.3885*** between 10,000-30,000 yuan as the part-timers. is 10%-30% 1.15 estimation and standard estimation did not (2.23) (3.53) a positive effect on improving RT revenue. We In this regard, if the part-timers turned into (yes=1, no=0) differ greatly in terms of p-values. assume that during busy seasons for tourism, full-timers in RT, they utilize more resources Primary school - 3.3563* - 0.3490** operators will help each other with RT education 1.06 which contribute to earning more from tourism. Satisfaction: Model I (- 1.87) (- 2.47) (yes=1, no=0) operations. The parameter of convenient Increased income from tourism also adds its Table 2 shows factors determining RT operators’ - 3.2102** transportation also had a positive value (10%), share on GDP in the Taining country. Constant − − satisfaction. Two network-related explanatory (- 2.24) which suggests that in order to develop rural Ultimately, it helps reduce the income gap variables (i.e., the network has been expanded Note: ***, **, * correspond to 1%, 5%, 10% tourism, the accessibility of farmhouses should between urban and rural regions. significance, respectively, RT= rural tourism. VIF is be improved. This result is consistent with a and most new guests are introduced by calculated by OLS. In the second part of the estimation, it was repeaters) both have positive parameters at the Source: The survey by the authors, March 2019. Japanese case study (Ohe, 2020; pp.197-215). revealed that building a network and enhancing Two motivation-related variables (desire to 10% and 5% significance 1evel, which means operators’ motivation both had positive effects 6 7

- 6 - Table 1. Estimation Results (semi-micro data) Moreover, the government should also offer improve quality of service and desire to have Y= Income disparity index building good relationships with tourists and Random effects Fixed effects neighboring operators are important for RT support to operators with a low level of their own business) had significant positive Explanatory model model operations. It is necessary for operators to education. From the estimated marginal effect, values at 10% and 5%, respectively. From these variables Coefficient Coefficient findings, we can assume that when operators increase capabilities in guest management to the income share from RT was the highest (z value) (t value) feel that RT activities are very meaningful, it acquire repeat visitors. contributor, followed by educational experiences Foreign trade value 0.0022 - 0.0060 would help increase their income and provide per capita (0.06) (- 0.12) Similarly, operators who had RT income and network-related variables for RT operators’ GDP of primary - 0.0760** 0.0418 positive feedback on their daily tasks related to shares of 10% – 30% were more satisfied with satisfaction. industry per capita (- 2.46) (0.44) RT. Highly motivated operators could be 0.0561 - 0.0657 their RT operation at the 5% significance level expected to have higher incomes. Urbanization rate Table 3. Determinants of RT operators’ income (0.27) (- 0.30) than those with other income shares. During (Logit model II) GDP from tourism - 0.1038*** - 0.1192*** the field survey, we found that most RT 5. Conclusion per person (- 4.01) (- 4.04) y= Income of RT exceeded 30 thousand yuan 2.3628*** 1.1588** operators considered the RT operation as a side (yes=1, no=0) Two sets of data were used to investigate the Constant (4.23) (2.03) occupation. Therefore, an RT income share of Explanatory Coeff. Mar. effect effects of RT and determinants of RT operators’ VIF Note: ***, ** correspond to 1% & 5% significance. 10% – 30% was in the comfort zone wherein variables (z value) (z value) satisfaction and income in Fujian province, Source: Fujian Bureau of Statistics, 2019. Relationships operators could balance their regular work with China, from semi-micro and micro perspectives. between operators 3.4433** 0.2926*** 1.05 From the estimations using the fixed effects the RT operation and family life. At this stage, are very good (2.16) (3.58) reasonable. The GDP of tourism per capita had model, the results revealed that RT activity rural resources are not fully utilized. To utilize (yes=1, no=0) a negative value with statistical significance Transportation is contributed to reducing the income gap between the rural resources fully it is crucial to increase 2.4531* 0.2084** (1%). This indicated that when the GDP from convenient 1.09 urban and rural areas. Thus, it is effective to the number of full-time RT operators. Primary (1.73) (2.31) tourism increases in rural areas, the income gap (yes=1, no=0) develop tourism, especially in rural areas, to Desire to improve school education level was a negative parameter 3.1472* 0.2674*** narrow that income gap. However, from the between urban residents and rural residents quality of service 1.15 with 10% significance, indicating that less- (1.88) (2.56) would be smaller. This is strong evidence that (yes=1, no=0) micro perspective, we found that rural educated operators had lower business Desire to have own resources were not fully utilized for RT engaging in RT can help achieve the goal of 5.7363** 0.4874*** satisfaction. It can be assumed that their business 1.04 purposes. Therefore, increasing the number of income equality. Thus, it is necessary to (1.99) (2.93) management capability should be improved. (yes=1, no=0) full-time RT operators not only would enhance investigate further the possible benefits of RT. RT work is very 3.4520** 0.2936*** the potential of RT but also increase rural meaning 1.16 (2.12) (3.49) Table 2. Determinants of RT operators’ (yes=1, no=0) resource utilization for RT purposes because RT 4.2. Results of estimations of micro data satisfaction (Logit model I) - 7.3712*** operators prefer engaging in RT as a part-time Constant − − The highest variance inflation factor (VIF) Y= Operation satisfaction compared with past work (- 2.56) job at present. Having a greater number of full- (yes=1, no=0) generated from the ordinary least square Note: ***, **, * correspond to 1%, 5%, 10% time RT operators in a destination signifies that Explanatory Coeff. Mar. effect VIF significance, respectively, RT= rural tourism. VIF is method was 1.23 for model I and 1.16 for model variables (z value) (z value) the destination has promoted tourism as a main calculated by OLS. Network was source of income. A destination which receives II; values less than 10 mean there is no 2.1522* 0.2238** Source: The survey by the authors, March 2019. expanded by doing 1.23 multicollinearity between the explanatory (1.69) (2.05) more income from tourism promotes tourism in RT (yes=1, no=0) farm diversification. According to Taining variables. Similarly, the Pseudo R2 were 0.5213 Most new guests Income: Model II Bureau of Statistics (2019) tourism share in are introduced by 3.0995** 0.3223*** and 0.6105 in model I and model II, respectively. 1.03 Table 3 summarizes the determinants of RT repeat visitors (2.14) (3.17) total GDP in 2018 was 43.0% and this survey Further, no heteroscedasticity was detected in (yes=1, no=0) operators’ income (Model II). A found that 45.7% of the RT operators earn only either model (used OLS), and the robust Income share of RT good relationship with neighbor operators had 3.7362** 0.3885*** between 10,000-30,000 yuan as the part-timers. is 10%-30% 1.15 estimation and standard estimation did not (2.23) (3.53) a positive effect on improving RT revenue. We In this regard, if the part-timers turned into (yes=1, no=0) differ greatly in terms of p-values. assume that during busy seasons for tourism, full-timers in RT, they utilize more resources Primary school - 3.3563* - 0.3490** operators will help each other with RT education 1.06 which contribute to earning more from tourism. Satisfaction: Model I (- 1.87) (- 2.47) (yes=1, no=0) operations. The parameter of convenient Increased income from tourism also adds its Table 2 shows factors determining RT operators’ - 3.2102** transportation also had a positive value (10%), share on GDP in the Taining country. Constant − − satisfaction. Two network-related explanatory (- 2.24) which suggests that in order to develop rural Ultimately, it helps reduce the income gap variables (i.e., the network has been expanded Note: ***, **, * correspond to 1%, 5%, 10% tourism, the accessibility of farmhouses should between urban and rural regions. significance, respectively, RT= rural tourism. VIF is be improved. This result is consistent with a and most new guests are introduced by calculated by OLS. In the second part of the estimation, it was repeaters) both have positive parameters at the Source: The survey by the authors, March 2019. Japanese case study (Ohe, 2020; pp.197-215). revealed that building a network and enhancing Two motivation-related variables (desire to 10% and 5% significance 1evel, which means operators’ motivation both had positive effects 6 7

- 7 - on an RT operation. RT operators who have in Rural Nepal, Open Agriculture, 4, 431-445. Ohe, Y. and Kurihara, S. (2013) Evaluating the Zapata, H.O., Maradiaga, D.I., Pujula, A.L. and Dicks, repeat visitors were more satisfied. At the same Chen, G., Glasmeier. A.K., Zhang, M. and Shao, Y. (2016) Complementary Relationship Between Local Brand M.R. (2011) Recent Development in Unit Root Tests time, it is important for operators to create a Urbanization and Income Inequality in Post-Reform Farm Products, Tourism Management, 35, 278-283. and Historical Crop Yields, Paper Presented at the balance with the farm and other activities since China: A Causal Analysis Based on Time Series Data, Park, C.H. (2014) Nongjiale Tourism and Contested Agricultural & Applied Economics Association’s there is an optimal level of income proportion PLoS One, 11(7), 1-16. Space in Rural China, Modern China, 40(5), 519-548. Annual Meeting, 1-29. from RT that is compatible with other farm Chen, Q. (2014) Advanced Econometrics and Stata Perales, R.M.Y. (2002) Rural Tourism in Spain, Annals Zhao, Y.M., and Lin, H.P. (2009) The Research of activities due to the constraints on managerial Applications ( 高级计量经济学及 Stata 应用), 2nd of Tourism Research, 29 (4), 1101-1110. Taining County’s Rural Tourism Development (in resources. Edition (in Chinese), Beijing: Higher Education Press. Sharpley, R. and Vass, A. (2006) Tourism, Farming and Chinese), Graduate Thesis, Fujian Agriculture and Further, results also indicated that the Cochrane, J.H. (1991) A Critique of the Application of Diversification: An Attitudinal Study, Tourism Forestry University. government needs to improve traffic Unit Root Tests, Journal of Economic Dynamics and Management, 27(5), 1040-1052. Zhou, S., Ikeda, T. and Zhou, X. (2008) A Study on infrastructure in rural areas and to provide Control, 15(2), 275-284. Su, B. (2011) Rural Tourism in China, Tourism Actual Condition of “Happy Farmhouse” in Hunan support to operators to raise their managerial Ge, Y. and Ohe, Y. (2011) Tourists’ Consciousness of Management, 32 (6), 1438-1441. Province, China : A Case Study of Town Area of capability because RT operators want to Rural Tourism in Eastern Coast Area of China: Case Taining Bureau of Statistics (2019) National Bureau of Zhuzhou City (in Japanese), Journal of Architecture improve the quality of the services they provide. of Fujiabian Agricultural Science and Technology Administration; Taining Bureau of Statistics (in and Planning, AIJ, 73(632), 2139-2146. The improved quality of services and a better Park in Jiangsu Province (in Japanese), The special Chinese) transportation network may attract more Issue of Journal of Rural Economics, 454-461. Konishi, T. and Ohe, Y. (2016) Evaluating Managers’ tourists as repeat visitors. Satisfaction with Farm Restaurant (in Japanese), The results presented in this study are only Journal of Rural Problems, 52(4), 199-204. based on statistics from a single province. We Krakover, S. (2004) Tourism Development—centres found that the part-timers are more satisfied in Versus Peripheries: The Israeli Experience During Taining. Although we mentioned full-timers are the 1990s, International Journal of Tourism Research, important for RT operation to reduce the income 6(2), 97-111. gap between rural and urban areas, it is Kumar, R., Gill, S.S. and Kunasekaran, P. (2012) necessary to investigate whether it is rational Tourism as a Poverty Eradication Tool for Rural Areas for farmers to be full-time operation. Further, in Selangor, Malaysia, Global Journal of Human, given the rich diversity in the rural heritage of 12(7), 21-26. China, additional research is necessary to Li, H., Chen, J.L., Li, G. and Goh, C. (2016) Tourism and confirm whether the results are consistent with Regional Income Inequality: Evidence from China, conditions in other provinces. Finally, we also Annals of Tourism Research, 58, 81-99. need to investigate the endogeneity between the Liu, H.T. and He, Q.Y. (2019) The Effect of Basic Public income gap and GDP in more details. Service on Urban-rural Income Inequality: A Sys-

Notes: This paper was originally presented at the 37th GMM Approach, Economic Research-Ekonomska annual conference of the Japan Society for Istraživanja, 32(1), 3205-3223.

Interdisciplinary Tourism Studies held at online on Lu, M. and Chen, Z. (2004) Urbanization, Urban-Biased

January 10th, 2021. This study was supported by Economic Policies and Urban-Rural Inequality (in

Kakenhi (Grants-in-Aid for Scientific Research) No. Chinese), Economic Research Journal, 2004-6, 50–58.

18H03965, No.20H04444, and Grand-in-Aid for JSPS Mahadevan, R. and Suardi, S. (2019) Panel Evidence on

Fellows No. 20J11833 from Japan Society for the the Impact of Tourism Growth on Poverty, Poverty

Promotion of Science (JSPS). Gap and Income Inequality, Current Issues in Tourism, 22(3), 253-264. References Ohe, Y. (2020) Community-based Rural Tourism and Bhatta, K. Itagaki, K. and Ohe, Y. (2019) Determinant Entrepreneurship: A Microeconomic Approach, Factors of Farmers’ Willingness to Start Agritourism Singapore: Springer. .

8 9

- 8 - on an RT operation. RT operators who have in Rural Nepal, Open Agriculture, 4, 431-445. Ohe, Y. and Kurihara, S. (2013) Evaluating the Zapata, H.O., Maradiaga, D.I., Pujula, A.L. and Dicks, repeat visitors were more satisfied. At the same Chen, G., Glasmeier. A.K., Zhang, M. and Shao, Y. (2016) Complementary Relationship Between Local Brand M.R. (2011) Recent Development in Unit Root Tests time, it is important for operators to create a Urbanization and Income Inequality in Post-Reform Farm Products, Tourism Management, 35, 278-283. and Historical Crop Yields, Paper Presented at the balance with the farm and other activities since China: A Causal Analysis Based on Time Series Data, Park, C.H. (2014) Nongjiale Tourism and Contested Agricultural & Applied Economics Association’s there is an optimal level of income proportion PLoS One, 11(7), 1-16. Space in Rural China, Modern China, 40(5), 519-548. Annual Meeting, 1-29. from RT that is compatible with other farm Chen, Q. (2014) Advanced Econometrics and Stata Perales, R.M.Y. (2002) Rural Tourism in Spain, Annals Zhao, Y.M., and Lin, H.P. (2009) The Research of activities due to the constraints on managerial Applications ( 高级计量经济学及 Stata 应用), 2nd of Tourism Research, 29 (4), 1101-1110. Taining County’s Rural Tourism Development (in resources. Edition (in Chinese), Beijing: Higher Education Press. Sharpley, R. and Vass, A. (2006) Tourism, Farming and Chinese), Graduate Thesis, Fujian Agriculture and Further, results also indicated that the Cochrane, J.H. (1991) A Critique of the Application of Diversification: An Attitudinal Study, Tourism Forestry University. government needs to improve traffic Unit Root Tests, Journal of Economic Dynamics and Management, 27(5), 1040-1052. Zhou, S., Ikeda, T. and Zhou, X. (2008) A Study on infrastructure in rural areas and to provide Control, 15(2), 275-284. Su, B. (2011) Rural Tourism in China, Tourism Actual Condition of “Happy Farmhouse” in Hunan support to operators to raise their managerial Ge, Y. and Ohe, Y. (2011) Tourists’ Consciousness of Management, 32 (6), 1438-1441. Province, China : A Case Study of Town Area of capability because RT operators want to Rural Tourism in Eastern Coast Area of China: Case Taining Bureau of Statistics (2019) National Bureau of Zhuzhou City (in Japanese), Journal of Architecture improve the quality of the services they provide. of Fujiabian Agricultural Science and Technology Administration; Taining Bureau of Statistics (in and Planning, AIJ, 73(632), 2139-2146. The improved quality of services and a better Park in Jiangsu Province (in Japanese), The special Chinese) transportation network may attract more Issue of Journal of Rural Economics, 454-461. Konishi, T. and Ohe, Y. (2016) Evaluating Managers’ tourists as repeat visitors. Satisfaction with Farm Restaurant (in Japanese), The results presented in this study are only Journal of Rural Problems, 52(4), 199-204. based on statistics from a single province. We Krakover, S. (2004) Tourism Development—centres found that the part-timers are more satisfied in Versus Peripheries: The Israeli Experience During Taining. Although we mentioned full-timers are the 1990s, International Journal of Tourism Research, important for RT operation to reduce the income 6(2), 97-111. gap between rural and urban areas, it is Kumar, R., Gill, S.S. and Kunasekaran, P. (2012) necessary to investigate whether it is rational Tourism as a Poverty Eradication Tool for Rural Areas for farmers to be full-time operation. Further, in Selangor, Malaysia, Global Journal of Human, given the rich diversity in the rural heritage of 12(7), 21-26. China, additional research is necessary to Li, H., Chen, J.L., Li, G. and Goh, C. (2016) Tourism and confirm whether the results are consistent with Regional Income Inequality: Evidence from China, conditions in other provinces. Finally, we also Annals of Tourism Research, 58, 81-99. need to investigate the endogeneity between the Liu, H.T. and He, Q.Y. (2019) The Effect of Basic Public income gap and GDP in more details. Service on Urban-rural Income Inequality: A Sys-