Social Impact of the Individual Visitor Scheme (IVS) of Chinese Mainland Tourists on Hong Kong: Evidence from Hong Kong Residents James Shen Hanqin Qiu Xi Li Agenda • Introduction • Research Gap • Objectives • Literature Review • Methodology • Findings, Discussions and Implications Introduction Introduction (1) Historical Development of Individual Visit Scheme (IVS) Implementation of IVS in 2003 49 mainland cities covered until 2007 Expansion of IVS in 2009 one-year multiple-trip permit for 4 million Shenzhen residents 62.4% of IVS visitors were under a multi- trip permit in 2013 Introduction (2) Positive Impact of IVS 40.7 million visitors from mainland China to Hong Kong (75% of total visitors ) IVS accounting for 67% of total mainland visitors Daily Expenditure: HKD3593 for IVS, HKD1970 for non- mainland visitors 72.9% expenditure on shopping for IVS visitors Economic Contribution of IVS 1.3% of GDP ( HKD 12.6 billion,114,280 jobs) 22.2% of total retail sales Encounter with local residents (transportation mode, shopping areas) Introduction (3) Negative Impacts of IVS Social capacity issues Transformation of the retail distributions Conflicts between locals and IVS visitors Research Gap • Previous research of IVS mainly on the behaviors, very few researches paying attention to the dimensions of social impacts. • Current research on IVS has been mainly concentrated on the industry and visitor aspects, with few exploring it from the perspective of local residents. Objectives • To identify the major dimensions of the social impact of IVS from the perspective of residents • To investigate the impacts of the social dimensions of IVS on the attitudinal and behavioral inclinations of the local residents • To propose practical measures to enhance social sustainability of the IVS as a special mode of travel by mainland visitors to Hong Kong Literature Review Literature Review (7) Social Representation Theory It can be defined as the knowledge systems of preconceptions, images and values held by members of the community that are culturally embedded and distinguished from individual experiences.(Ying, 2004) Embodiments of social representations are products of socialization in themselves, including experiences, information, knowledge way of thinking. Literature Review (8) Main sources shaping social representation Direct control(culture, group) Conversation and social interaction in its various levels Direct Experience Literature Review (9) Social representation IVS contexts - Social and cultural peculiarities of IVS - Incomprehensive analysis of traditional theory on IVS - Social representation better explaining tourist- resident relationship Theoretical Framework and Hypotheses (1) Theoretical Framework and Hypotheses (2) • H1: The perceptions of Government regulations have a positive impact on the attitude of local residents • H2: The perceptions of the social impacts of IVS by local residents has a positive impact on their attitude toward IVS • H3: The level of place attachment of local residents has a positive impact on their attitude toward IVS. • H4: The attitude of local residents in Hong Kong toward IVS has a positive impact on their behavioral intentions. Methodology Methodology(1) Research Process Methodology(2) Sampling Findings, Discussions and Implications Findings (1) The measurement model χ2=900.311, df=451, p < 0.001,CFI=0.936, GFI=0.93, and RMSEA=0.07 Findings (2) The structural model χ2=900.311, df=451, p < 0.001,CFI=0.936, GFI=0.93, and RMSEA=0.07 Final Structural Equation Model Results of Hypotheses Testing Hypothesis Path Supported or not supported H1 Government regulations Residents’ Supported attitude (B= 0.44, T=7.26) H2.1 Socio-economic impact Residents’ Not Supported attitude H2.2 Social life impact Residents’ attitude Supported (B=0.32, T=8.63) H2.3 Cultural Landscape Residents’ attitude Supported (B=0.27, T=6.52) H3 Place Attachment Residents’ attitude Supported (B=0.32, T=9.57) H4 Residents’ attitude Behavioral Supported Intention (B=0.79, T=11.8) Discussion (1) • Overall negative attitude towards IVS • Positive influence of social life and culture landscape impact. • insignificant relationship between socio- economic impact and residents’ attitude Discussion (2) • Level of endorsement with government regulations positively related to residents attitude • Positive correlation between place attachment and residents’ attitude Theoretical Implications • Integration of traditional conceptualizations of social impact and social representation perspectives • The placement attachment function as antecedents of residents attitude • Incorporation of government regulations Practical Implications • Social Factors identified for minimizing negative social impact of IVS • More attention on socio-economic impacts • Establishing a balanced system of values regarding place attachment • Incorporation of residents’ attitude when designing tourism policies • Attributes identified helping to translate the social impact into its social benefits Thank you! Q & A .