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The Roles of Formal and Informal Institutions in Small Tourism Business Development in Rural Areas of South China

Author

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  • Shuwen Liu

    (Faculty of International Tourism and Management, City University of Macau, 4/F, Choi Kai Yau Building, Avenida Padre Tomás Pereira Taipa, Macau, China)

  • Irene Cheng

    (Department of Science and Environmental Studies, The Education University of Hong Kong, Tai Po, New Territories, Hong Kong, China)

  • Lewis Cheung

    (Department of Social Science, The Education University of Hong Kong, Tai Po, New Territories, Hong Kong, China)

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.

Suggested Citation

  • Shuwen Liu & Irene Cheng & Lewis Cheung, 2017. "The Roles of Formal and Informal Institutions in Small Tourism Business Development in Rural Areas of South China," Sustainability, MDPI, vol. 9(7), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:7:p:1194-:d:103860
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    References listed on IDEAS

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    Cited by:

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    2. Costa Teresa & Nunes Sandra & Umbelino Jorge & de Lurdes Calisto Maria & Afonso Victor Alves, 2020. "Impacts of Tourism and Residents’ Perceptions: A Study in the Regional Tourism Area of Lisbon," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 10(1), pages 28-40, May.
    3. Bonnie K. L. Mak & Lewis T. O. Cheung & Dennis L. H. Hui, 2017. "Community Participation in the Decision-Making Process for Sustainable Tourism Development in Rural Areas of Hong Kong, China," Sustainability, MDPI, vol. 9(10), pages 1-13, September.
    4. Keshuai Xu & Jin Zhang & Fengjun Tian, 2017. "Community Leadership in Rural Tourism Development: A Tale of Two Ancient Chinese Villages," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    5. Tian Tian & Stijn Speelman, 2021. "Pursuing Development behind Heterogeneous Ideologies: Review of Six Evolving Themes and Narratives of Rural Planning in China," Sustainability, MDPI, vol. 13(17), pages 1-16, September.
    6. José María Martín Martín & Jose Antonio Salinas Fernández & José Antonio Rodríguez Martín & Juan De Dios Jiménez Aguilera, 2017. "Assessment of the Tourism’s Potential as a Sustainable Development Instrument in Terms of Annual Stability: Application to Spanish Rural Destinations in Process of Consolidation," Sustainability, MDPI, vol. 9(10), pages 1-20, September.
    7. Shuwen Liu & Lewis T.O. Cheung & Alex Y. Lo & Wei Fang, 2018. "Livelihood Benefits from Post-Earthquake Nature-Based Tourism Development: A Survey of Local Residents in Rural China," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    8. Nanping Feng & Fenfen Wei & Kevin H. Zhang & Dongxiao Gu, 2018. "Innovating Rural Tourism Targeting Poverty Alleviation through a Multi-Industries Integration Network: the Case of Zhuanshui Village, Anhui Province, China," Sustainability, MDPI, vol. 10(7), pages 1-18, June.
    9. Li, Shenyu & Popkowsky Leszczyc, Peter T.L. & Qiu, Chun, 2023. "International retailer performance: Disentangling the interplay between rule of law and culture," Journal of Retailing, Elsevier, vol. 99(2), pages 193-209.

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