The guideline to promote tourism that was approved by the State Council, China's Cabinet, in late July has invited wide public attention, because many believe the focus on increasing investments in the tourism sector will boost the tourism market and thus drive economic growth.
The tourism sector has become increasingly important to the national economy, and the authorities have made great efforts for its development. While increasing China's foreign exchange reserves, the booming tourism sector has also raised "tourism awareness" among Chinese people and prompted the authorities to protect people's right to travel.
The importance the central government attaches to tourism development and the efforts of the tourism authorities have laid a solid economic and social foundation for the sector. In particular, a 2014 State Council document that listed tourism as an integral part of the modern services sector and made boosting tourism-related consumption a key task of government work has injected a new vitality into the tourism industry.
The latest State Council document requires governments at various levels to implement the paid-leave system and formulate concrete rules and programs for its success. It also authorizes local governments to prepare their holiday schedules based on their distinct ethnic festivals to avoid "peak seasons" caused by the few national-level holidays. Flexible schedules will help employees arrange leisure travels during their spare time and prompt them to spend more.
The growth of the tourism sector, however, has led to changes in tourism-related consumption and demands. For example, apart from visiting scenic and historical sites, an increasing number of people also want to enjoy holidays just for leisure. In response, governments at all levels have to increase fiscal inputs into the tourism sector, in order to improve tourist facilities, such as transportation, public lavatories and parking facilities.
For the first time, the State Council document focuses on investment in the tourism sector and defines the government's role in it, from infrastructure construction, investment promotion and rural tourism to deepening reform for the continued growth in investment. It also aims to boost tourism through some measures that may at first appear trivial, such as building and renovating public toilets in scenic spots.
Tourism has already become one of the most vigorous sectors of the national economy. In this context, the authorities' efforts to develop online tourism platforms and promote online shopping will not only benefit the tourism industry, but also encourage start-ups and innovation in the sector. The document's aim to develop barren mountains, slopes, wastelands, dumps, abandoned mines, rocky arid areas in Central and West China for tourism projects, if well implemented, will help the entry of social capital into the tourism market.
People's rising incomes have boosted the demand for leisure travel, increased employment, alleviated poverty and made tourism-related consumption a key driver of economic growth. The National Tourism Administration estimates domestic, inbound and outbound travels will reach 4.05 billion, 130 million and 125 million person/times in 2015, and tourism will contribute 10 percent to national economic growth.
This shows tourism has had "spill-over effects" on other sectors and will play a bigger role in the broader national economic system.
