Analysis on the Crowding-Out Effect of Tourism and Regional Differences

Abstract:

After the reform of Chinas tax system, in the case of an established local fiscal revenue, due to the differences in local infrastructure, under the influence of different investment and tourism-oriented input and output levels, the crowding-out effect of tourism industry varies. This paper validates this inference, and concludes that the crowding-out effect of tourism over other industries is small in areas with larger tourism scale such as Beijing which is either historical and cultural city, or political and economic center, with an emphasize on tertiary industry development; while the crowding-out effect of tourism over other industries is the largest in areas with smaller travel size, which is either landlocked but rich in tourism resources, or lacks of tourism resources but plays the key position of foreign trade. Regions of medium tourism scale are mostly dominated by secondary industry. Although the investment in tourism has increased in recent years, the propensity of government and private investment is firstly towards local leading industries, thus the production factors needed for development of the tourism industry have been occupied by local leading industries. And finally, the corresponding development strategies have been proposed for tourism industry with different crowding-out effect.

• Periodical: Applied Mechanics and Materials (Volumes 522-524)
• Pages: 1581-1589
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.522-524.1581
• Online since: February 2014
• Authors: Jun Ni Wang*, Yong Kun Wan, Suo Cheng Dong
• Keywords: Crowding-Out Effect, Regional Difference, Tourism

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