August 25, 2021
TOURISMS STRATEGIC IMPORTANCE 2 - TOURISM’S STRATEGIC IMPORTANCE

Travel & Tourism is forecast to become Hainan’s leading export sector, generating the highest share of foreign exchange revenues. It has the potential to diversify Hainan’s economy, stimulate entrepreneurship – particularly among small and medium-sized enterprises (SMEs) – to catalyze investment, and create large numbers of sustainable jobs. In addition, although so widely recognized, is its ability to help social development in local communities, including alleviating poverty.

The Government of Hainan Province of the People’s Republic of China (henceforth referred to as the Hainan Provincial Government) clearly recognises Travel & Tourism’s strategic importance, both in terms of economic growth and social development, as well as the need to nurture the industry to ensure it develops sustainably – for the benefit of local communities as well as for the province’s economic growth. The only concern is whether all the other different stakeholders support the government’s view. There is some evidence to suggest that this may not be the case, and that this could lead to a lack of co-ordination in terms of planning and policy development.

Factor Travel & Tourism into mainstream government policies

Travel & Tourism’s strategic importance should be communicated to all levels of government, industry and local communities and, after allowing for due consultation with the many different stakeholders, it should be factored into mainstream policies for employment, trade, investment, education and environmental protection.

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Conclusion

Travel & Tourism needs to be effectively measured in order to understand its full impact throughout the economy. As a relatively new industry, it is not clearly identified in charts of national or provincial accounts as its component parts are scattered throughout these accounts. As a result, public sector analysis and related policies tend to overlook, or understate, the impact of the industry, or deal with its individual components, such as air transport.

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