How tourism contributes to poverty reduction in China

China is likely to be the world’s most popular tourist destination by 2020. Most of China’s 125 million poor people live in rural areas. The natural resources here are suitable for tourism; this creates opportunities to benefit the country’s poorest communities.

Recently conducted research examines the impact of pro-poor tourism policies in China. Many of China’s poorest people are from ethnic minority groups who live in remote, mountainous regions. Since economic reform began in 1978, these regions have experienced the least growth. Poor infrastructure, remote locations, a fast-growing population and a low standard of humanitarian relief all slow down poverty reduction.

However, these areas are rich with natural resources such as wildlife and scenery, as well as much of China’s cultural heritage. This provides the basic conditions necessary for pro-poor tourism. The industry is now central to poverty reduction in many regional areas. Between 1978 and 2003, tourism provided more than 30 million jobs and brought 6 million people out of poverty.

Many of China’s pro-poor tourism projects are labour-intensive, small-scale and low cost, allowing more people to become involved. In many areas, tourism has changed communities: for example, women can now access a wider range of employment opportunities. The research shows:

• Pro-poor tourism in China mainly benefited from the rapid growth of domestic tourism, not international visitors.
• Tourism has reduced the isolation of some communities by increasing investment in telecommunications, roads and water infrastructures.
• A lack of pro-poor emphasis during planning has led to reduced choice in destinations, too much accommodation, low quality souvenir products and environmental degradation.
• Pro-poor tourism is particularly good for small businesses such as restaurants, guesthouses, ferry services and the producers of handicrafts such as jewels and jade.
• Certain types of tourism are particularly suitable to rural China because they require less investment. For example, ecotourism and agricultural tourism have been successful in Xinjiang and Ningxia.

To develop pro-poor tourism further, policymakers should develop the industry in areas where the poorest people live. Most importantly, the tourism industry must focus on projects that directly benefit poor communities, rather than simply aiming to increase visitor numbers and revenues. The research suggests that policymakers should:

• shift the focus of tourism development from successful areas to the least developed regions
• place a greater emphasis on lessons learnt and the involvement of non-government organisations
• develop policies that encourage longer tourist stays, sophisticated marketing policies, tour operations run by local people and plan for disruptions by the weather
• encourage a clear understanding of pro-poor principles when assessing the resources and opportunities of poor regions with tourism potential
• create policies that attracts private funding, foreign investment and the micro-financing of small businesses
• consider alternatives for regions with limited funding and resources, such as small-scale attractions with a focus on local and regional tourism
• provide access to advice, training and education to help poor people enter the industry.

Source(s):
‘Pro-Poor Tourism and the Chinese Experience’, Asia Pacific Journal of Tourism Research, Vol. 10, No. 4, pages 379-398 by Jiaolan Bowden, December 2005

id21 Research Highlight: 9 May 2006

Further Information:
Jiaolan Bowden
The Scottish Centre of Tourism
Aberdeen Business School
The Robert Gordon University,
Garthdee II, Garthdee Road
Aberdeen, AB10 7QG
UK

Tel: +44 (0)1224 263 016
Fax: +44 (0)1224 263 838
Contact the contributor: j.y.bowden@rgu.ac.uk

Robert Gordon University, UK

Jiaolan Bowden

Contact the contributor: jiaolanbowden@yahoo.co.uk

Other related links:
'How can tour operators contribute to sustainable development?'

'The role of governments in making tourism more sustainable'

'Does community-based ecotourism really benefit rural people in Tanzania?'

'Getting to grips with development in rural China'

The Pro-Poor Tourism website