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Research on the Deficit of China’s Tourism Service Trade and Countermeasures

Tourism service trade is a kind of service trade, which refers to the activities that one country or region’s tourism practitioners provide service and get paid in use of the controlled tourism resources to consumers of other countries or regions. At present, the tourism industry is an important pillar industry in China, tourism service trade has always been an important source of China’s service trade income. However, China’s tourism service trade deficit occurred for the first time in 2009, and continued to expand. As to 2014, the deficit widened to $113.6 billion, sharing 57.7% of the service trade deficit. Although to some extent, the tourism trade deficit alleviates the relations between China and the other countries, the long-term deficit will also harm the interests of the country. In this paper, the data comes in large part from “Tourism Statistic Yearbook of China” and China’s National Bureau of Statistics, which are used to analyze the deficit of China’s tourism service trade.
In general, the overall scale of China’s tourism service trade rose sharply. Before 2008, China’s tourism service trade, as one of the only two trades in services which is in state of surplus in China, played an important role in increasing foreign exchange income and balancing the international payments. The tourism service trade surplus has been partly offset China’s trade deficit for many years. Due to the financial crisis and other factors, the global economy continued to slump since 2008. China’s inbound tourism slowed down significantly. The number of China’s inbound tourists and the inbound tourism foreign exchange earnings are significantly reduced.
Since the new century, with the continuous improvement of people’s living standards and the rapid development of the national economy, the growth rate of outbound tourism enlarged significantly. After 2009, outbound tourism spending and the number of outbound tourists increased by an average annual rate of 28.2% and 16.62%. In 2012, China’s outbound tourism market had exceeded Germany and the United States, becoming the world’s largest outbound tourism market.
This paper gives some analysis of the Causes of China’s Tourism Service Trade Deficit. First, in recent years, the government introduced a series of policies to guide the national tourism consumption, driving the development of domestic tourism and outbound tourism market. Second, the rapid development of the domestic economy promotes outbound tourism. From the development of global tourism destination, the motivation of tourists enhance with per capita GDP growth. Third, rising domestic prices and the appreciation of the RMB lead to more and more people choose to travel aboard. Forth, the value of RCA of China declined since 2008, which shows that the level of international competitiveness is not stable, although China is a large outbound country, but it does not belong to the tourism service trade. Fifth, the tourism product structure is single, and the high quality service is provided by the foreign tourism destinations. Finally, poor environment has a negative impact on inbound tourism.
There are some countermeasures and suggestions to get out of the plight of deficit of tourism services trade. First, Macro-Control by government to guide the development of tourism industry. Second, relax the visa caliber appropriatelytake measures to control outbound tourism. Third, maintain the overall level of price and the RMB exchange rate relatively stable. Forth, optimize the international tourism enterprises and products; improve the competitiveness of china’s tourism service trade. Fifth, optimize the structure of china’s tourism service trade, improve the related infrastructure system. Last, improve environmental awareness, establish good tourist environment.


Article by Chunfan Guo, Chuan Liao from Jinan University, China.

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