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

Shuwen Liu, Irene Cheng and Lewis Cheung
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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

Sustainability, 2017, vol. 9, issue 7, 1-14

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.

Keywords: small tourism business; institutions; access to assets; endowments and entitlements; livelihood (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:7:p:1194-:d:103860

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