Abstract
Since 1978, China has increasingly relied on foreign tourism as a part of its economic development strategy. This article examines this policy and pays particular attention to the risks of dependence on foreign exchange earnings from tourism, to variations in such earnings, and to their sustainability; and it suggests policy measures which may be adopted to reduce this risk. Problems encountered in managing the supply of hotels and transport systems are reviewed, leading to a discussion of the international competitiveness of the Chinese tourism industry.
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