Research On The Application Of PPP Model In The Tourism Development Project In Shangrao City

The tourism industry has become strategic pillar industry of China's national economy Since "Thirteen five".With the economic growth and the improvement of national income,the public demand for tourism products has been increasing.At the same time,many problems existing in China's tourism industry have restricted not only the growth of tourism revenue but also the improvement of people's satisfaction about the tourism.Tourism industry needs to "supply side reform" to promote industrial upgrading,which assists in the tourism industry adapting to the situation,attracting more tourists,improving tourism comprehensive income and improving the people's satisfaction.The tourism industry is supported by a series of specific tourism development project.Tourism development projects with the characteristics of large investment,long cycle and high risk.Hence,the projects aren't favored by the investors,who pursuit of low risk,high returns and high liquidity of the capital.The traditional financing channels for tourism development projects mainly involve financial investment,financial institution loans and capital market financing.With the declining growth rate of Chinese economic,tight local financial funds and cautious attitude of banks and related financial institutions towards loaning,China's capital market is not yet mature,leading to tourism development project financing more difficult.Simultaneously,the government mainly adopts the government and social capital cooperation model(PPP model).From the second half of 2014,the Ministry of Finance and the National Development and Reform Commission have issued a series of documents,in order to guide large-scale application of the PPP model.According to this background,this paper analyzes the current situation of tourism development projects in Shangrao City,and reveals that financing difficulties have become a serious bottleneck in Shangrao tourism development.In this paper,firstly,from the standpoint of the rational application of PPP model and based on the definition of PPP model issued by Ministry of Finance and the National Development and Reform Commission,we definite that PPP model is a formation of long-Cooperation between the government and private sector,restricting with the laws,the contract and the principle of equality,mutual benefit and win-win,in order to permanently and stably provide public goods or quasi-public goods with lower prices and higher efficiency.Thedefinition is relatively accurate,not easy to understand the ambiguity and with good operability.Secondly,the article analyzes the connotation of the PPP model and sums up its five significant characteristics.This paper expounds the rise and development of PPP model in western countries and the tide of three rounds of application after the introduction of PPP model in China.And then,the classifications of PPP model at home and abroad,especially the classification of PPP model issued by China's Ministry of Finance,and the significant role of the project company(SPV)played in PPP model are introduced in this paper.Finally,we conclude the successful experiences by selecting and analyzing two representative tourism projects,the PPP Project of Sewage in Chizhou,Anhui Province and the PPP Project of Line 4 of the Beijing Subway.Based on the discussion above,this paper chooses the tourism development project of Shangrao City,mainly about tourism complex project,scenic development project and rural tourism development project,to analyze the efficient and operational selection of PPP model.In particular,we have selected the large-scale tourism complex project of Shangrao City,which has been planned and included in the tourism development project,as an example.This article emphasizes that the application of PPP model is the government behavior and must have a legal basis.China's Ministry of Finance's "Guide” is the most authoritative documents of application of PPP model.The tourism development project adopting PPP model in Shangrao City must be carried out obeying the “Guide”.In other words,as long as fit in with the requirements in the chapter 6 of the "Guide",the tourism development projects in Shangrao City can adopt the PPP model.In the operation of specific projects,the procedures specified in the "Guide" should be strictly carried out.First of all,evaluate the project of the value for money(VFM)and the financial capacity,from the tow qualitative and quantitative analysis.Whether PPP model be applied or not depending on the results of the evaluation.In the operation of the project,the most important thing is to control risks,so that the project's public welfare and profitability could achieve a balance.This article concludes three suggestions.First,the legislation of PPP model should be passed by National People's Congress,focusing on how to control the risks,particularly to prevent government credit risk.Second,China's academic community should continue to strengthen the study of PPP model,particularly about the principle and the combination with China's national conditions of PPP model,to contribute the theory of PPP model with the Chinese characteristics,which guide the application ofPPP model in China.Third,a few experiences can be learned from because the application of PPP model in tourism development project is a relatively new subject.so all levels of government in the tourism development project in the application of PPP mode,it is necessary to explore courageously,to operate carefully,to obey the laws and guidelines and to shoulder the responsibility.