Tourism‐dependent development: the case of Lijiang, Yunnan province, China

Abstract

This paper explores the effectiveness of tourism as a development policy through a case study of Lijiang, one of the most popular tourism destinations in China. Using both primary and secondary data, the study evaluates the consequences of external investment, external migrant entrepreneurs, and non‐local companies acting as major influences on local tourism development. Two theoretical frameworks are drawn upon: the dependent paradigm and the informal–formal dichotomy. Major issues are observed that challenge the sustainability of current developments. These include: the mass tourism development model together with spatial concentration of the tourist market; market channels controlled by external travel corporations; heavy reliance on external investment in real estate and infrastructure development; outsiders’ domination of Lijiang’s ancient town commercial sector; a mitigating contribution by external migrant enterprises to the local community; and an uneven distribution of benefits among the locals. It is implied from this research that planned and targeted governmental intervention and institutional adjustments are prerequisite conditions for indigenous and ethnic people to obtain greater benefits from tourism development. It also suggests that a reconsideration of the justification of tourism as a vehicle for development in the peripheral areas of China might be appropriate.