The Research Of Fiscal Policies To Promote Tourism Development

Tourism industry is one of the emerging and sunrise industries in the world. With the development of the popular, recreational and global trend, the tourism industry increasingly becomes an important consumption pattern and a way of life, and has become one of the world's largest and growing-fastest industries. China's tourism industry has taken many industrial positions since Reform and Openness, from the reception department of the government to the economic sector, to the new economic growth, to the important industry in the national economy, and to the strategic pillar industry of national economy. Nowadays, the tourism industry is the important power in China's national economy to contribute to the rapid economic growth.In order to achieve the goal of the strategic pillar industry, a system of industrial policies is needed. Fiscal policy, as one component of the industrial policy, can enhance the international competitiveness, promote industrial restructuring and upgrading, and optimize the development environment.However, few studies focus on the issue that how to support the development of the tourism industry using fiscal policies. In addition, although the budget increases the investment to the tourism industry, there are many problems in the fiscal policies of tourism industry in China. Therefore, research on fiscal policies for developing tourism industry not only is an important practical issue, but also a key theoretical proposition. The paper explores the targets, directions, principles, instruments and procedures of fiscal policies in China's tourism industry, reviews and summarizes the history of fiscal policies related to China's tourism industry, analyzes and evaluates the current fiscal policies in China's tourism industry, compares with the fiscal policies in Japan's tourism industry, concludes many choices of fiscal policies to perfect the fiscal policy system in China's tourism industry.The paper consists of eight chapters. The research process includes theoretical analysis, combination with the changes of fiscal policies in China's tourism industry, induction of the basic theory of fiscal policies in tourism industry, research on the targets, directions, principles, instruments and procedures of fiscal policies in the context of public finance system, assessing the effects of fiscal policies in tourism industry, comparative analysis of Japan's'Visit Japan Campaign'strategy, and proposing the guides and suggestions for completing fiscal policies of China's tourism industry.Chapter One is Introduction, which introducing the paper's background, its contributions, research situation at home and abroad, the research methods, the research process, the structure and so on. Little research focuses on the fiscal policies in tourism industry at home and abroad. Therefore, comprehensive and systematic research on fiscal policies of tourism industry is the original point of the paper.Chapter Two is Theoretical Basis of Putting Tourism Industry into Public Finance, which focuses on the definition, nature, function and evolution of the public finance, analyzes the relationship between fiscal policies and tourism development, and emphasizes the theoretical inevitability of putting tourism industry into public finance. Public finance is that the government, in use of the revenue and expenditure, centralizes the social resources for performing its duties, meeting public needs and regulating economic activities. The theoretical inevitability of putting tourism industry into public finance is proved by the nature of the tourism industry including the public product attributes, externality and symmetry of tourism market information.Chapter Three is Practical Basis of Putting Tourism Industry into Public Finance, which focuses on the definition, structure and features of the tourism industry, summarizes the evolution of China's tourism industry and stresses its major contributions to the national economy. Three strategic transformations of China's tourism industry are summarized, including the first transformation from the reception facility to the economic facility from 1978 to 1988, the second one from the economic facility to the economic industry from 1988-1998, and the third one from the important economic industry to the strategic pillar industry since 2000. Nowadays, tourism industry has become the major industry in the national economy and the key component in the modern service industry, which is considered as the practical inevitability.Chapter Four is Historical Evolution of Fiscal Policies in China's Tourism Industry. The historical evolution includes three stages:policies for promoting the inbound tourism from 1978 to 1989, policies for the formation of the tourism industry system from 1990 to 1999, and policies for growing into the great tourist power since 2000. The relatively perfect frame of fiscal policies system has not been constructed in China. Fiscal policies related the tourism industry are just scattered in the relevant tourism regulations and government documents.Chapter Five is International Reference of Fiscal Policies in Tourism Industry: Japan's Experiences and Suggestions, which analyzes fiscal policies in tourism industry in the frame of the Japan's'Visit Japan Campaign'strategy, and summarizes the impacts and the meanings to China's policies-making. There are five instruments of Japan's fiscal policies in the tourism industry, including financial budget, low prices, subsidies, low taxes and credit support. The relevant experiences of Japan's fiscal policies in the tourism industry includes construction of the integrative and systematic tourism administration, improvement of the tourism-related regulation system, detailed arrangement of the tourism budget, variety of financial incentives to the tourism industry, establishment of fiscal policies to support inbound tourism, and development of fiscal policies to construct the'sightseeing circle'.Chapter Six is Theoretical Construction of Fiscal Policies in Tourism Industry. The targets, directions, principles, procedures and instruments of fiscal policies in tourism industry are discussed. Budgetary policies, government investment policies, government purchase policies, transfer payments policies, tax policies and treasury policies are the instruments of fiscal policies in tourism industry. And fiscal policies in tourism industry should mainly support the construction of the tourism infrastructure and the public service system, the promotion of the tourism images and the tourist markets, the building of the tourist attractions and products, the improvement of tourism industry upgrading and tourism technology innovation, the development of tourism human capital, the cultivation of tourism market's subjects, the protection of tourism resources, the exploration of tourist consumptions, the prosperity of tourism economy in Western China, and the optimization of tourism market environment.Chapter Seven is Choices of Fiscal Policies to Promote Tourism Development, which focuses on the financial expenditure policies, tax policies and supervision on these policies in tourism industry, and suggests the outline to improve fiscal policies in China's tourism industry. Fiscal policies to promote tourism development contain four aspects. The first one is financial expenditure policies to promote tourism development. The second one is tax policies to promote tourism development. The third one is identifying what fiscal policies mainly support in order to overcome the weaknesses of tourism development. The last one is strengthening fiscal policies'decision-making and supervision in order to increase the effects.Chapter Eight is Conclusions and Future Research. Firstly, applying public product theory, externality theory, market failure theory and public finance theory, the paper unveils that tourism industry has public product attributes and the strong externality. Therefore, it is very important to increase public financial investment to tourism industry. Secondly, the historical evolution and the present structure of China's fiscal policies in tourism industry are systematically researched. The targets, directions, principles, instruments and procedures of China's fiscal policies in tourism industry are proposed, which helps constructing the theoretical frame of fiscal policies in tourism industry. Thirdly, the choices of fiscal policies in tourism industry are discussed. But this research is limited by relevant materials, time and research abilities, so that the content and the functions of the fiscal policies are not adequately discussed. Future research is needed to deepen the issues.