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China is set to become the world's second largest tourist destination in the world.
What are the reasons and what will the impact be?
China is becoming one of the world superpowers in terms of their economy and tourism.
It is estimated that in the next 10 years, China will overtake the United States in terms of
their economy and become the biggest in the world. This evidence makes us to believe that
as China's economy is growing, every other factor is also benefitting in the same way. The
growth of tourism is directly proportional to the growth of the economy. It is proposed
that China is the Second largest tourist country in the World. I will investigate this claim
and come to a conclusion to see whether it is viable in the modern day.
I will look at the reasons and
impacts on both China and the rest
of the World. This includes looking
at how the Chinese Reform helped
the economy boost as well as
reduce poverty rates and increasing
income for local people. By
increasing the amount of PPP,
tourism is able to be increased
especially in the middle class. I will
look at how the middle class has
emerged and how they are
inputting into the tourism industry.
The Chinese Reform is a massive factor influencing the change in tourism. It started in
1978 and was led by Deng Xiaoping. China had the largest economy before the 19th
Century. Their GDP was average with the worldwide rates which did not correlate with
the advancement of the economy in China. China's economy was strong and powerful
since the 16th Century although did not develop further until recent times. Their economy
dropped in the 19th and 20th Century and revolutionised in the 1930's, to be the power they
are today. Economic reforms were starting in the 1980's where the private sector grew. In
2005 the private sector made up 70% of the GDP in China. Between 1987 and 2013
China's economy grew 9.5% each year.
China passed over Japan, being Asia's largest economy in 2010. It is now the second
largest economy in the world after the United States and is estimated to overtake them in
2025. These changes and success have led to changes in the Chinese society. Poverty rates
are reducing and incomes and equality have increased. By reducing the amount of
poverty, people are going to have a larger disposable income and are able to spend more
money. This impacts tourism because individuals are able to spend more money in
tourism rather than in the prosperous public sector. This could cause implications though,
as the size of the GDP would not grow as expected.
The middle class of China is difficult to define, but it rapidly growing in size. The middle
class could be shown as the people between poverty and being in the riches. In China the
income of those in this category is under estimated in some instances. There are more
middle class and affluent citizens than predicted but are becoming wealthy because of the
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Chinese Reform and their benefits in the public sector. They are now having a higher PPP
and want to travel and have new experiences both in China and across the globe.
The middle class is causing an imbalance in society and problems such as income
equalities are causing GDP growth implications. Those with a disposable income are
contributing to high levels of spending but the central government is trying to disperse this
into others areas and investments tourism.…read more