Abstract
Taking a livelihood perspective to study tourism has become popular in recent years, but as an essential part of livelihood analysis, institutional processes have not yet received enough attention. This study focuses on the influences of formal and informal institutions on small tourism businesses in rural areas. A case study was conducted in Hong Kong, and the entitlements framework was adopted as an analytical tool. Based on qualitative data generated from field study, this paper describes how different groups of residents rely on institutions at multiple levels to gain assets and make legitimate effective use of them through operating small tourism businesses. Results indicate that the interaction between formal and informal institutions is mediated by a variety of organisations, particularly implementation authorities at the frontline, and determines residents’ access to assets and the tourism market and subsequently, affects their start-up and operation of small tourism businesses. Informal institutions play a vital role in creating a favourable situation for local residents. However, this role may not satisfy small business owners who are non-local residents.
Highlights
Tourism has frequently been used throughout history as an engine to facilitate economic development in rural areas
While conflicts between formal and informal institutions are not uncommon in natural resource management projects in rural areas [25,28,29], the case study in Hong Kong suggests that institutional conflicts are a common phenomenon when developing tourism in rural communities
The case study reveals that gaining access to property or public space as physical capital is crucial for local residents to participate in tourism-related activities
Summary
Tourism has frequently been used throughout history as an engine to facilitate economic development in rural areas. Both local and non-local factors are responsible for shaping tourism development [1]. An essential criterion of the success of tourism destinations in rural areas is local residents’ support. The perceived benefits of tourism development can be an essential driving force to gain local residents’ support. In many rural tourism destinations, local residents are accustomed to providing some very simple and generic tourism services. Operating these small tourism businesses could allow them to share some economic benefits of the development
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