Institutional Changes And The Government-Dominated Development Of China's Tourism Industry

Using the basic theories and logics of the New Institutional Economics, the thesis analyses the dominant role that the government played in the development of China's tourism industry from historical perspective and two levels of which one is from the internality of tourism economy and the other from the external macro economy. The thesis firstly builds a simple model which describes the internal institutional changes of tourism economy, then it is placed the macro transformation environment of China's economy to consider the necessity of the government -dominated development of China's tourism industry.The paper argues that at the beginning of China's tourism industry development, the government-dominated institutional changes were required by both the internality of tourism economy and the external economic transformation of China. It was not only necessarily but workable at the initial time. With time goes by and the spread of tourism market, however, it has been not very suitable, even quite bad at present time for the further development of China's tourism industry. It is confronted with many hard bones caused by its internal conflicts that can not be worked out by itself, and more importantly it constraints the emerging of validity of tourism firms which is more contributable to satisfy the tourists diversified demands. In the end the thesis claims the government-dominated should be replaced by the enterprises-dominated, which would not only benefit to the further development of China's tourism but also be helpful to accelerate the transformation of China's macro economy.