A Study On The Influence Of Private Capital Involvement To Community Relations Of The Ancient Villages And Towns

The practice of private capital involvement in tourism development of ancient villages and towns began in the mid-1990s in China. With the improvement of investment and development in the ancient villages and towns, the modes of private capital involvement are being more and more, and the degree of involvement is becoming deeper and deeper. The modes of ancient villages and towns transit from independent development organized by villagers to multiagent development which contains enterprise, government, foreign investors and local residents. Now,Private capital which could not be ignored has become a strong force of tourism development of ancient towns and villages.However,when private capital involves in tourism development of ancient villages and towns,it makes a series of management behaviors which changes the patterns of resource allocation and distribution of benefits in ancient villages and towns.The changes affects the vested interests of community residents and other stakeholders directly,which make the community relations more and more complex. In this case, community contradictions of ancient villages and towns are getting complex.For example, Fenghuang ancient town changed its operating mode in2003,which makes a semi-open scenic into a closed scenic.The change in operation Led to the interests of community residents and merchants suffering a severely damage,which triggered the huge contradiction among local residents,merchants and private capital.Based on the literature studies and survey, this thesis firstly reviews the development and operation modes of private capital involvement in tourism development of ancient villages and towns. This thesis proposes that the operation modes of private capital focus on tickets charging and business development modes,which are determined by the degree of available resources and balance of cost and benefit of private capital. Then this thesis analyses the influence of private capital involvement to community relations of the ancient villages and towns, which is based on the research of operation modes. The operation modes of private capital affects the vested interests of community residents and other stakeholders,which makes every stakeholder produce a series of behavioral responses for ensuring the cost-benefit balance.However, the change of vested interests causes the change of community relations. Furthermore,when the benefits of all stakeholders reach to balance,the community relations tend to steady.But when the benefits of all stakeholders can not reach to balance, the community relations tend to dissonance,which makes private capital change its operation mode for the balance of community relations though the re-allocation of resources and redistribution of benefits. And then the new pattern of resource allocation and distribution of benefits prompts the new business behavior of private capital until the community relations get to a new balance.