China's Tourism Hotel Industry Restructuring And Institutional Innovation

The present industrial management system of Chinese hotel industry as dual-component structure emerges from its preceding system of department management .The former has advantages over the latter in that it can realize overall management, enhance the coordination and cooperation among hotel enterprises and strengthen the bargaining power of hotel enterprises over other relevant department. However, with the scale enlargement of Chinese hotel market, the hotel enterprises' consciousness as principal part in market and the upgrading competition in domestic market, international competition environment is also changing especially in trade terms after China accedes to WTO. The dual-component industrial management system has gradually lost it's advantages in initial period because of it's intrinsic conflict and low compatibility with outside environment. Institutional exhaustion of the present system is the main cause of efficiency and benefit lost of Chinese hotel industry.Extensive experience of western countries in developing market economy has proved that when countered with large-scale market and diversified firms, industrial associations as nongovernmental organization could make up for the disadvantages of government in that they provided coordination and cooperation, self-regulation mechanism among firms and served as an intermediate between firms and government.The article introduces hotel associations into the dual-component system of Chinese hotel industry and puts forward the tri-component system that fits in with the developing hotel industry. Considering the path dependence that the new industrial management system has on present condition of Chinese hotel industry and hotel associations, the article sets forth a strategic prospective to construct and implement the tri-component system by referring to the advanced function of American and Japanese association system, that is - depend on the dynamicmechanism of voluntary behavior that big firms in hotel industry will provide to break the self-enforcing lock-in state of dual-component management system of Chinese hotel industry and realize the adaptive vicissitude from government selection to society selection in hotel association producing pattern ; restrict the scope of government's administration power and foster the hotel associations' function to serve both their members and the government by principal-agent contracts ,and construct the tri-component management system in which hotel associations and government can make up for each other and work in equilibrium; set up legal regulation to keep the tri-component industrial management system from variations such as monitoring failure and agent's corruption caused by irrational behaviors and asymmetric information.