Coastal zone management focusing on coastal tourism in a transitional period of China

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Ocean & Coastal Management 51 (2008) 1–24

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Coastal zone management focusing on coastaltourism in a transitional period of China

Ming Gu�, Poh Poh Wong

Department of Geography, National University of Singapore, 1 Arts Link, Singapore

Available online 18 May 2007

Abstract

Coastal zone management in China has undergone a developmental leap since 1978, a turning

point in the country’s economic and institutional reform. In examining China’s reform in coastal

management, this paper assesses the evolution of marine activities including coastal tourism. It also

looks into the present issues of coastal resource uses and how administrative agencies responded to

those coastal resource issues especially as the country moves from a planned economy to a market

economy, and from centralized governance to decentralized governance. This paper also proposes a

management approach for coastal tourism management in the future of China.

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1. Introduction

1.1. Profile of coastal resources in PR China

China is one of the largest oceanic nations in the world. It possesses nearly 3-million km2

sea area and its continental coast stretches for 18,000 km. There are 6500 islands alongChina’s continent [1]. The coast has a wide variety of biological, chemical, and mineralresources. In addition, 11 provinces or municipal cities, 53 cities, 61 county-level cities and76 counties are located in the coastal areas [2]. The major coastal cities are listed in Fig. 1.The population of the coastal zone, estimated at 480 million people, represents more than40% of the total population in China [3]. China’s regional development is spatially uneven,with the coastal region developed much ahead of the interior [4]. Since the post-Mao

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Fig. 1. Major coastal cities in China. Note: Taiwan is claimed by PR China government.

M. Gu, P.P. Wong / Ocean & Coastal Management 51 (2008) 1–242

economic reform in 1978 when the open-door policy was launched, the coastal region hasgrown more rapidly than the central and western regions as a result of policy priority [3–6].The living standard in the coastal zone is 1.19–1.56 times of the average standard in Chinaand the coastal zone generates 62% of the mainland’s GDP in 2000 [7]. The gross outputvalue (GOV) of marine industries has increased sharply since 1995 (Fig. 2).Tourism became a development priority during the transition from a planned economy

to a market economy [8] as tourism can enhance communication and cultural exchangebetween China and other countries, generate foreign exchange for modernization andfurther international relations as an extension of diplomacy [9,10]. Coastal tourism that

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0

600

800

1000

1200

1400

1978 1980 1990 1995 2000 2004

GO

V (

billio

n R

MB

)

Year

200

400

Fig. 2. Gross output value of major marine industries in different years. Note: gross output value of the industry

is the total volume of industrial products sold or available for sale in value terms which reflects the total

achievements and overall scale of industrial production during a given period [2].

0

50

Coasta

l Touris

m

Maritim

e T

ransporta

tion

Coasta

l Ship

build

ing

Marin

e B

iolo

gic

al P

harm

aceutic

al P

rod

Marin

eC

hem

ical a

nd S

eaS

alt

Offs

hore

Oil a

nd N

atu

ral G

as

Marin

e F

isherie

s

Marine Industries

2001

2002

2003

2004

Outp

ut V

alu

e (

bill

ion R

MB

)

400

350

300

250

200

150

100

Fig. 3. Gross output value of major marine industries.

M. Gu, P.P. Wong / Ocean & Coastal Management 51 (2008) 1–24 3

ARTICLE IN PRESSM. Gu, P.P. Wong / Ocean & Coastal Management 51 (2008) 1–244

has undergone the transition from a planned economy to a market economy contributed tothe rapid development of the coastal zone in China (Fig. 3) and it is one of the majormarine industries now. Fig. 4 presents the increase of international tourists received bycoastal cities from 1993 to 2002 and Fig. 5 compares tourists received by different coastalcities.With the rapid development of the marine industries in China, there was a competition

for marine resources and a deterioration of the coastal environment. Arising from thecompetition for marine resources, the most serious issue is the multiple resource useconflicts among different marine sectors such as the conflicts between aquaculture and

0

5

10

15

20

25

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

To

uri

sts

(m

illio

n)

Year

Fig. 4. International tourist received in coastal regions.

0

100

200

300

400

500

600

700

800

900

Tia

njin

Qin

huangdao

Dalia

n

Shanghai

Nanto

ng

Lia

nyungang

Nin

gbo

Wenzhou

Fuzhou

Xia

men

Qin

gdao

Yanta

i

Guangzhou

Shenzhen

Zhuhai

Shanto

uZ

hanjia

ng

Beih

ai

Haik

ou

Sanya

1998 1999 2000 2001 2002

Open coastal cities

Inte

rnati

on

al to

uri

sts

('0

00s)

Fig. 5. International tourism receipts of 20 coastal cities.

ARTICLE IN PRESSM. Gu, P.P. Wong / Ocean & Coastal Management 51 (2008) 1–24 5

shipping/port, coastal mining and shoreline protection, ‘‘oil and fish’’, drainage andaquaculture, and tourism and aquaculture. The excessive and unplanned use of marineresources exacerbated the burden of coast environment. Every year, about 8.7 billion tonsof land-based pollution is discharged into the oceans. In recent years, large areas of algalblooms (red tides) have occurred, 70% of coastal areas have been polluted, 66% of themangroves have been cut down and 95% of the coral reefs have been destroyed [11]. Thecoexistence of overused coastal resource and unused coastal resources is also another issue.For instance, some popular coastal resorts located within towns are crowded, puttingconsiderable strain on the resort facilities’ carrying capacity due to the large influx oftourists while many fine beaches far from towns have been ignored, resulting inunderutilized coastal resources.

1.2. Literature review

1.2.1. Coastal zone management in China

Coastal zone management is a critical theme in many countries with high intensity ofmarine and coastal resource uses. The significant changes of marine uses (coast and ocean)during China’s economic and administrative reform were stated [12] and some researchersreview the current status of marine resource uses and pointed out relevant issues [3,12–15]).Wang [13,14] gave extensive overviews of the location and conditions of the coastal zonesin China and criticized the lack of consistent boundaries of the coastal zones during the1990s. Yu [3,12] and GEF/UNDP/IMO [15] looked at the status of marine resource use inChina and assessed the current issues of ‘use conflicts’ in terms of competition for limitedmarine resources and the consequences of pollution by various sources and mechanisms.Yu [3] and GEF/UNDP/IMO [15] analyzed the development status of marine industries,including coastal tourism.

Some researchers focused on the evaluation of institution and administration structureabout coastal zone management [5,13,14,16,17]). Chua et al. [16], GEF/UNDP/IMO [15]and Lau [5] addressed the institutional and organizational changes and the evolution ofcoastal zone management from sectoral to integrated coastal management (ICM) sinceChina’s administrative reform. Lau [5], Fan and Cote [17] examined the presentmanagement structures, legal regime and institutional constraints applicable to themanagement of China’s coastal zone. They review the problems besetting the drafting andimplementation of the state coastal zone management law in some detail. Wang [13,14]addressed the lack of management integration in China.

The strong impetus to search for new management approaches to resolve marine useconflicts and to protect the environment rationally were analyzed [3,12,15,16]. A newmanagement approach, Integrated Coastal Zone Management (ICZM) was put forwardby many scholars. For instance, Lau [5] argued that ICZM is a widely accepted concept toensure sustainable development in the coastal zone. In addition, case studies in Xiamen[5,16,18–20] and Shanghai [5,21] were selected as demonstration sites to test a workingmodel for an ICM system for mitigating marine pollution [16]. Evaluation criteria forapplication of ICM system were also discussed [16].

The current problem is that although coastal zone management was widely studied,coastal tourism study is not a popular topic in China. Although coastal tourism is one sub-section in the coastal zone, those researchers studying coastal zone management seldomspecialized in coastal tourism management. Coastal tourism was seldom studied under the


framework of the coastal zone management considering the influence of China’s economicand political reform.

1.2.2. Tourism management in China

Some scholars attended to tourism management in China. Both Chinese scholars andforeign researchers turned their attention to the policies for tourism industries in China[22–27]. Edgell [22] and Richter [23] were two pioneers to analyze the China’s tourismpolicy-making. Richter [23], Xu [24], Zhang et al. [25], Wen and Tisdell [26] and Zhang [27]examined the evolution of the tourism policies in China—a centrally planned developingcountry within a broader environment including institutional arrangements, politicalobjectives, values and power arrangements affecting tourism policy formulation. Richter[23] especially stressed that it was critical to understand not only the design of the policybut also the nature of the society resources and its administrative milieu.In addition, Zhang et al. [25], Xiao [10], Lai et al. [6] emphasized the different aspects of

China’s tourism management, such as the central government’s role, the powerful finger-Deng Xiaoping’s role, and the features of tourism planning. Zhang et al. [25] argued thechange of the Chinese government’s roles in different phases since 1978. Xiao [10] pointedout the powerful finger-Deng Xiaoping’s influence on tourism development in China andgave a discourse analysis on his talks on tourism. Lai et al. [6] specially focused on thestudy of tourism planning in China and pointed out the gap occurring between planningand implementation once the planned approach to tourism development is adopted. Thecauses of the gap in a Chinese context were argued in order to offer insights about whatpossible countermeasures should be sought.Although tourism study is a hot topic, one of its branches—coastal tourism—was not

widely studied in China. Previous tourism research seldom studied the evolution of coastaltourism and rarely assessed the institution transformation as well as policy changes forcoastal tourism during China’s transitional period.On the one hand, this study analyzes coastal tourism under the framework of coastal

zone management and assesses the policies, legislation and planning for marine sectorsthat are also appropriate for coastal tourism. On the other hand, this study considers theevolution of tourism industry, institution transformation and policy changes for tourism ascoastal tourism is one portion of tourism. In short, this paper assesses the evolution ofmarine activities including coastal tourism and how administrative agencies response tocoastal tourism when the country moves from a planned economy to a market economy,and from centralized governance to decentralized governance. It also proposes amanagement approach for coastal tourism in the future of China.

2. Economic and political transition in China

In the 1980s and 1990s, the China experienced a dramatic transformation from aplanned economy to a market economy. At the same time, China also experienced apolitical transition from centralized governance to decentralized governance. The term‘‘government’’ is essential as the government plays an important role in both the plannedeconomy and the market economy. The term ‘‘governance’’ is also widely used during theprocess of marketization and decentralization. As the terms ‘‘government’’ and‘‘governance’’ are often mixed up, it would be appropriate to define the terms,‘‘governance’’ and ‘‘government’’ at this point.


Government is state-centrism; institutional insulation and homogeneity; state sover-eignty and superiority; and the state’s focus on constitutional arrangement [28].Governance is a ‘self-organizing network’ that organizations from both public sectorsand private sectors form the autonomous managing network [29]. Within this network,some social actors (public sector, private sector, NGOs and even communities) areinvolved in this coordination process and the collective decision-making process [29–32].This network is contrasted with the traditional top-down approach of governments‘‘driving’’ society.

The differences between ‘‘government’’ and ‘‘governance’’ are aplenty. Government isthe undisputed locus of power while there is no longer a single sovereign authority forgovernance [28, 29, p. 51]. Government is a conglomeration of institutions, which do nothave to engage in bargaining with other societal actors based on their legally definedjurisdiction [28]. By contrast, for governance, the boundaries between public, private andvoluntary sectors are blurred [33] and the coordination process takes place in a broaderarena rather than within the formal institutions of government [33, p. 33]. In short,governance is broader than government [29,34]. Government is regarded either as thesubset of governance [34] or as an actor of a dynamic, complex and diverse social-politicalgovernance process [35]. Governance is the minimal state because the size of governmentwas reduced by privatization and a cut in the civil service [36].

2.1. Centralized governance in the planned economy

The planned economy in China is a system where planning is carried out centrally; thestate controls the factors of production, directs enterprises to produce those goods andmakes all decisions about their use, price and distribution of income [37,38 p. 288,39]. Thecentral government played a supreme role in the planned economy. Here, governancefocuses power and authority into a single department. It is a highly controlled,bureaucratic, and process-driven model.

During the period of the centrally planned economy (from the 1950s through the early1980s) in China, the central government monopolized economic policymaking and theallocation of resource and finance [40,41]. The State Planning Commission, in particular,exercised enormous power over the economy [40]. The central government controlled thelower governments by administrative order, mandatory plan, and administrative personnelappointments and removals [41].

China’s central government had the ownership of marine resources and those marineactivities that were based on marine resources were controlled by the central government.For instance, coastal tourism is controlled by the central government through the Ministryof Foreign Affair in the planned economy period.

2.2. Decentralized governance in the market-driven economy

At the Third Plenum of the National Party Congress’ Eleventh Central Committee inDecember 1978, China’s party leaders decided to undertake a gradual but fundamentaleconomic reform [42]. The purpose of China’s reform program was not to abandoncommunism but to make it work better by substantially increasing the role of marketmechanisms in the system and by reducing—not eliminating—government planning anddirect control [42]. A market economy is defined as an economic system in which the


production and distribution of goods and services takes place through the mechanism offree markets guided by a free price system rather than by the state in a planned economy[37,38].As a key strategy of market liberalization, the central government under the leadership

of Deng Xiaoping, sought to mobilize local government through various decentralizedgovernance reforms [43]. The Decentralized Governance Model is ‘‘the decentralizedmethod distributes power through many departments without a single owner. Thismaximizes creative freedom for content owners and publishers’’ [44]. The decentralizationof authority to attract foreign-investment gave local authorities, especially those in coastalcities opportunities to become ‘driving force’ of China’s economic development.Additionally, in the coastal zones of China, the trans-national alliance between localauthorities and foreign investors has helped to strengthen the sub-national leveldevelopment [45]. The local governments can retain a greater portion of their revenuesand mobilize resources through foreign investment and foreign loans and are thus lessdependent on the central state [46].The decentralization reforms in China include financial autonomy; privatization of local

enterprises; a rationalization of local bureaucracy through downsizing and mergers, andrecentralization of power [40,41,43,47]. First of all, the central government signed fiscalcontracts with local authorities to give them the residual revenue which encourages moreefficient deployment of capital and stimulate local economic growth [48]. The localgovernments gradually withdrew from the function of directly running business entitiessuch as state-owned enterprises; some state-owned enterprises were offloaded to private or‘corporate’ entities [47]. Finally, the sub-national level governments received considerabledecision-making powers from decentralization and marketization. They became a keyplayer in China’s transition to a capitalist economy because it was at the local level thatmarket entrepreneurialism was unleashed [43].

3. Chronology of marine and coastal activities

The marine activities in China had a long history dating back thousands years ago.Significant marine events in China’s history are discussed in this part of the research.

3.1. Pre-1949 period (-1949)

The earliest navigation started prior to the Qin Dynasty (248–206BC) and from BohaiSea to South China Sea with the main aim of exchanging goods [49]. In the Qin Dynasty,China was a strong maritime empire and sea travel was not only for business and trade butalso for pilgrimage, education and cultural communication. For instance, the first emperorof China-Qinshihuang (259–210BC) asked alchemists to travel by sea to Korea and Japanto seek ‘‘eternal youth’’ pills [49].In the Ming Dynasty (1368–1644) China enhanced its hegemony of the seas. Admiral

Cheng Ho (1371–1435) and his fleet traveled seven times to Java, Thailand, Malaca,Sumatra, east coast of Africa, and Red Sea in a period of 28 years (1405–1433). Thesevoyages promoted economic and cultural exchanges with Asian and African countries.During the first Opium War (1840–1942), foreign powers occupied some coastal cities

and ports in China and the foreigners became the first major tourists [49]. Due to theirdemand for recreation and sightseeing, hotels, restaurants and infrastructures were


developed. The development of coastal tourism was then suspended due to the continualwars (e.g. Second Opium War, Second World War, and Civil War) in China until 1949when the People’s Republic of China was founded. In contemporary times (1949–now),marine activities and coastal tourism gained rapid development.

3.2. Planned economy (1949– 1965)

The central government that was the exclusive decision maker played a crucial role inmonopolizing marine resources and controlling marine activities in the centrally plannedeconomy. In order to rule over the marine resources, the central government started anationwide oceanographic survey in 1958 which means that China realized the essentialityof oceans. In the same year, the central government also issued the Announcement onTerritorial Sea to safeguard the ownership of the state over the seas. Thereafter, the centralgovernment became aware of the importance of ocean management and established theState Oceanic Administration (SOA) in 1964, the agency to handle various maritime issues,including over-fishing, red tide, and pollution during this period.

This period is the beginning of contemporary coastal tourism development. Interna-tional tourism developed earlier than domestic tourism [8] because the governmentconsidered coastal tourism as a way to introduce China to permitted overseas Chinese orforeigners to visit the country [10,27]. In the planned economy, tourism was tightlycontrolled by the central government without cost–benefit consideration [25] as coastaltourism was a diplomatic affair. Three agencies—the Ministry of Foreign Affairs, GeneralAdministration of Travel and Tourism (GATT) and China International Travel Service(CITS)—were all involved in tourism management [9,26,50]. The CITS was set up in 1954as a state-owned enterprise and represented government in operating tourism business,such as arranging accommodation, food and sightseeing for oversea diplomats withoutprofits [50]. The first government administration—GATT—was set up in 1964 to issuerules to guide tourism development as well as to work with CITS to operate tourismbusiness activities together. Some officers in GATT were also the staff in CITS whodirectly operated tourism business. The combination of administration and enterprises wascommon in the planned economy as the state-controlled economic activities.

3.3. The Cultural Revolution period (1966– 1976)

During the Cultural Revolution, all marine activities were suspended and alladministrations related to marine activities were paralyzed. Coastal tourism was notsupported by the central government [9] as it was regarded a capitalist activity astourists were mainly from capitalist countries or regions [51]. Any business relatedto capitalism was forbidden during the Culture Revolution. The agencies managingtourism were reinstated gradually after 1970 when the Minister Zhou Enlai tried toreverse policies and revive marine activities including coastal tourism. GATT was revivedand the Ministry of Foreign Affairs proposed the ‘‘Advice on Tourism OperationSystem Reform’’ in 1970 [50]. The agency to operate international tourism business wasCITS. Before 1970, tourism enterprises operated on a deficit as preferential treatmentwas given to overseas diplomats. In the late 1970s, tourism enterprises were allowedto obtain surplus by the central government, although tourism was still mainly fordiplomacy [50].


3.4. The open-up period (1978– 1992)

The central government was not involved in the operation of marine activities though itcontinued to formulate and implement regulations. In 1978, China recovered from theCulture Revolution [10] and embarked on economic reconstruction as well as opening upto the outside world [4,52]. As the coastal zone in China was the first area to experienceeconomic reforms, most state investment was allocated to the coastal region [53]. Whenmultiple marine resource use conflicts arose, the central government proposed aregulation—Sea Use Zoning in 1989—to safeguard the legitimate rights of thestakeholders who are authorized to use the sea area.The open-door policy resulted in the reform of coastal tourism management. Prior to the

open-door policy, China closed its door to most foreigners, believing in ‘‘the feweroutsiders the better’’ [23]. By contrast, in the post-Mao era Deng Xiaoping—the pioneer inopening up China [10]—pointed out that tourism was a signifier of reform and open-doorpolicy. Hence, the function of coastal tourism was changed from a pure diplomaticundertaking to one of an economic industry [10,24,54].Deng’s critical pronouncements propelled the formulation of subsequent policies and

strategies for the great development of China’s coastal tourism [10,23]. China NationalTourism Administration (CNTA) was empowered with the overall responsibilityof implementing tourism policies [10,26,54]. It formulated a series of top-down regulations,such as ‘‘Temporary Regulations on the Administration of Tourism Developmentand Planning’’ in 1999 and ‘‘General Specification for Tourism Planning’’ effected since2003 [10].

3.5. The market economy (1993– present)

The economic reforms in this period were characterized by marketization, globalization,and decentralization [4]. The market played an important role in coastal zone managementin the ‘‘socialist market economy’’ called for by Deng Xiaoping in January 1992 [54]. Sincethe late 1992, the term ‘‘market economy’’ has replaced the ‘‘socialist market economy’’. Inthe market economy, a marine space utilization fee and a marine resource utilizationlicense were implemented to manage marine resources. The central government not onlyissued regulations but also promoted and invested in marine industries. It also realized thenecessity for inter-agency cooperation and three coastal regions were selected for a newmanagement approach—ICM pilot program—to deal with resource use conflicts [5].Economic and administrative decentralization to local state-owned enterprises also led to aperceptible increase in provincial initiatives to promote marine industries.China’s coastal tourism was affected by both government-leading and market-driving

initiatives [10]. Many new ideas unheard of in the planned economy were becomingpopular, such as entrepreneurship, foreign investment in tourism facilities, marketing andpromotion. Globalization also enhanced coastal tourism development. Since China’s entryinto the World Trade Organization (WTO) in 2000, China has had more chances ofcommunicating with other WTO member countries, leading to another round of rapidincrease in coastal tourism. Due to decentralization, the central government took charge ofthe macro-strategy, setting the direction for the whole country’s tourism while givingindependent administration rights to regional or local governments. The governments atdifferent levels started directly investing in coastal tourism and issuing independent

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Table 1

Evolution of policies on marine activities including coastal tourism in China

Periods Social-economic

pattern

Features of coastal and

marine resource uses

Policies

1949–1965 (Initial

national economic

development

under central

planning)

1–5th Five-Year Plan:

� Establishment of

planned economy

� State monopoly of

resources

� Large-scale

exploitation of marine

and coastal resources

� First signs of over-

fishing and red tide

� Initiation of

international tourism

� Coastal tourism as

national diplomatic

affairs without cost-

benefit analysis

� Realisation of the importance

of ocean

� Announcement to claim the

territorial sea in 1958

� Initiation of a nationwide

oceanographic survey

� National agenda on pollution

control and fisheries

management

� Central government’s control

of the price and operation of

coastal tourism

� Establishment of tourism

administration—General

Administration of Travel and

Tourism (GATT) in 1964

1966–1976

(Economic

stagnation)

� ‘‘Cultural

Revolution’’

� Marine activities

stagnation

� Tourism decline and

closure of some

tourism attractions

from 1966 to 1976

� Administration related to

marine activities paralysis

1978–1992

(Economic

structural reform)

6–7th Five-Year Plan:

� Opening of the

country to the

outside world

� Initiatives for

modern economy

� National policy

on the

prioritisation of

coastal

development

adopted

� Rapid growth in

marine sectors,

including shipping,

fisheries, tourism,

mining, waste

disposal, etc

� Recognition of

tourism as industry

� Fast growth of

inbound tourism from

1981 to 1985

� Beginning of domestic

tourism from 1986 to

1990

� Growth of multiple

marine resource use

conflicts

� Nationwide survey of coastal

zone, island and coastal

tourism resources

� Regulations on sea area

zoning by the State Oceanic

Administration (SOA) to

mitigate use conflicts

� Transformation of

government’s function from

business operation to

political regulation

� Economic benefits focused,

policy’s objective of tourism

to generate foreign exchange

� GATT upgraded to CNTA-

an institute under the State

Council

� State as the major investor

for coastal tourism

1993–present

(Accelerated

economic

8–10th Five-Year

Plan:

� Intensification of

coastal multiple use

conflicts

� Piloting of integrated coastal

zone management

� Paradigm shift of sea area use


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Table 1 (continued )

Periods Social-economic

pattern

Features of coastal and

marine resource uses

Policies

development

under market-

driven economy)

� Marketisation,

globalisation,

decentralization

� Deepening of

economic

structural reform

� Entry into World

Trade

Organisation

(WTO)

� The beginning of

outbound tourism

management from agency

regulation to national

legislation

� Striving to be a powerful

state in global tourism

market

� Strengthening international

interchange and cooperation

� Investors for tourism: the

state, local government,

collectives, and private

individuals, foreigners

� Foundation of China

Domestic Tourism

Association in 1993


operation rights to private coastal tourism enterprises. For instance, travel agencies at thelocal scales were empowered to receive international tourists [24] (Table 1).

4. Current management structure

Administrative structure is crucial for coastal zone management and an effectivestructure is beneficial for efficient management. China has a complex administrativestructure with many administrative agencies in charge of marine sectors. As the centralgovernment plays a prominent role in coastal management and legislation ushers efficientmanagement, this part of the research analyses the structure of central government as wellas the laws issued after the founding of the People’s Republic of China.

4.1. Major agencies involved in coastal zone management

During the on-going political and economic structural reform period, top-downmanagement was still the main management approach in the one party socialist country—China. Administrative agencies rather than the general public and non-governmentorganization are the main stakeholders involved in coastal zone management. TheNational People’s Congress is empowered to develop the constitution and legislation. It isnot included in Fig. 6 as it is not an administrative agency. The State Council (SC) is thesupreme administrative organization and three-level subordinate administrative agenciesare under the SC in the national government (Fig. 6). The first-level agencies under the SCare ministries. The ministries related to marine industries include Ministry of Land andResource, Ministry of Agriculture, Ministry of Communications, Ministry of PublicSecurity, Ministry of Water Resources, National Development and Reform Commission,and Ministry of Health.The second-tier agencies are called ‘‘administrations’’. Administrations related to marine

industries are either under ministries or directly under the SC (Fig. 6). For instance, the

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Fig. 6. Institutional structure of coastal and ocean management in the national government.


SOA is under the Ministry of Land and Resource and the State Fishery Administration isunder the Ministry of Agriculture while the National Tourism Administration, the StateEnvironment Protection Administration, the General Administration of Customs, and theChinese Academy of Sciences are directly under the SC. The most influential agency incharge of China’s coastal zone management is SOA, established in 1964. At the nationallevel, the SOA is appointed as the sole government organization for formulating thecountry’s overall strategy and policy for sea use management while it still has noomnipotent power to look after China’s marine affairs in an integrated manner at present.

The third-tier agencies are departments under the administrations. These departmentsare in charge of specific aspects of marine industries. For instance, the Marine SpaceManagement Department under SOA is in charge of issuing licenses to marine resourceuse. The Policy, Regulation and Planning Department under SOA is responsible forissuing regulations and policies related to marine resource use. Besides this, the nationalgovernment and the sub-national governments (provincial, municipal and countygovernments) also have corresponding bureaus in charge of marine industries within eachlevel government, such as Ocean and Fishery Bureau, Tourism Bureau, and EnvironmentBureau. At present, the ministries and administrations play an important role inadministrating coastal sectors, such as agriculture, industry, fisheries, tourism, urbanplanning, construction, port, and trade activities (Table 2). Some agencies’ functionsoverlap.

4.2. Marine and coastal legislation

Over the last decades, the Chinese government has made significant efforts in developinglegislations for the coastal zones. Two groups of laws were issued from 1978 to 1993. Onegroup aims to protect marine environment, such as the laws about marine environmentalprotection and the prevention of marine pollution by land- and sea-based sources

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Table 2

Key agencies involved in coastal activities

Agency Management Function Regulated Laws and

Regulations

Ministry of Land and Resources Ocean resources mapping Management Law

Mineral Resources Law

Mapping Law

Ministry of Communications Inspection of ships Maritime Safety Law

Harbour superintendence Ship Source Pollution

Regulation

Marine traffic safety

Merchant ships management

Ship source pollution

Ministry of Public Security Marine defence and security Various laws and regulations for

public safety and social security

Ministry of Water Resources Marine hydroelectric resources

management

Water Law

Inspection of water supply

facilities

Ministry of Health Quarantine management Quarantine Regulations

Border Area Quarantine

State Oceanic Administration Legislation, planning and policy

making

Sea Area Use Management Law

Ocean resource investigation Ocean Dumping Regulations

International affairs about

ocean

Offshore Source Pollution

Regulation

Scientific research Submarine Cables and Pipelines

Regulation

Prevention of oil pollution and

dumping in ocean

Foreign Marine Scientific Survey

Regulations

State Fishery Administration Fishing ground management Fisheries Management Law

Fishing vessel inspection Aquatic Wildlife Protection

Regulation

Fishermen license

Fishing disputes

Protection of environment in

fishing ports

Protection of fishery resources

National Tourism

Administration

Coastal tourism activities

management

NA

State Environmental Protection

Administration

Control and prevention of

coastal marine environmental

problems

Environmental Protection Law

Land-Based Sources Pollution

Regulations

Coastal Engineering Pollution

Regulations

General Administration of

Customs

Control smuggling Customs Law

Chinese Academy of Science Research on oceanic resource

and environment use and

protection

NA

Bureau of Energy Exploitation of offshore oil

resources

NA


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Table 2 (continued )

Agency Management Function Regulated Laws and

Regulations

Salt Industry Management

Office

Sea salt administration Salt-making Regulations

Development Planning Office Coordination in national

economic and social

development planning, including

marine development

programmes

NA

Sources: Compiled from Fan and Cote [17] and GEF/UNDP/IMO [15].

Table 3

Major national marine laws and regulations in China

Date Laws and regulations Issuing institutions

4.9.1958 Announcement on Territorial Sea State Council

30.1.1982 The Regulations on the Exploitation of Offshore Petroleum Resources in

Cooperation with Foreign Enterprises

State Council

23.8.1982 The Marine Environmental Protection Law National People’s

Congress

2.9.1983 The Marine Traffic Safety Law National People’s

Congress

29.12.1983 The Regulation for Environment Protection of Offshore Oil Exploitation State Council

29.12.1983 The Regulation for Preventing Ship Pollution State Council

6.3.1985 The Regulation for the Management of Ocean Dumping State Council

1.20.1986 The Fisheries law National People’s

Congress

19.3.1986 The Marine Mineral Resource Management Law National People’s

Congress

18.5.1988 The Regulation for Preventing Ship Pollution State Council

25.5.1990 The Regulation of Coastal Engineering Pollution State Council

25.5.1990 The Prevention of Pollution Damage to Marine Environment by Land-Based

Sources

State Council

25.2.1992 Territorial Sea and Contiguous Zone Law National People’s

Congress

15.5.1996 The United Nations Convention on the Law of the Sea National People’s

Congress

18.6.1996 The Regulation of Foreign Marine Scientific Survey State Council

29.6.1998 The Exclusive Economic Zone Law and Continental Shelf Management Law National People’s

Congress

27.10.2001 The Sea Area Use Law National People’s

Congress

28.10.2002 The Sea Area Use Management Law National People’s

Congress


(Table 3). The other group aims to manage marine resources, such as the Fisheries Law(1986) to prevent further decline in fish resources and the Marine Mineral ResourceManagement Law (1986) to protect rare minerals (Table 3). In this phase, all laws were


guided by a centrally planned economy and China’s socialism theories, and all laws weresectoral legislations issued by different sectoral agencies, such as the Fishery Administra-tion and the Environment Protection Administration.From 1993, increased ocean awareness is reflected in the adoption of legislations from

the UN Convention on the Law of the Sea (1996). The main target of these legislations isto deal with multiple coastal resource use conflicts. The Sea Area Use Law issued in 2002created an opportunity for more sophisticated coastal management in terms of functionalzoning and sustainable financing [55]. When this law was approved, it entered into a stageof orderly resource use, non-free resource use and sustainable maritime exploitation.Additionally, most of China’s coastal provinces and municipalities were empowered toissue regulations for local sea area use management due to administrative decentralization(Table 4).In the phase from 1993 to present, increased ocean awareness is reflected in the

adoption of legislations from the UN Convention on the Law of the Sea (1996).In this phase, the main target of these legislations was to deal with multiplecoastal resource use conflicts and subsequently the Sea Area Use Law was issued in2002. The Sea Area Use Law created an opportunity for more sophisticatedcoastal management in terms of functional zoning and sustainable financing [55].When this law was approved, it entered into a stage of ordered resource use andnon-free resource use and sustainable maritime exploitation. Additionally, mostof PR China’s coastal provinces and municipalities were empowered to issue regulationsfor local sea area use management due to administrative decentralization (Table 4).A coastal zone management act was in place in the year 2000 while it seems that it is goingto take until 2005 or even 2007. Therefore, the legislation of CZM in China can beconsidered as preparatory [5].

Table 4

Major rules issued by provinces or municipalities in China

Location Major Rule Year

Hainan coastal

counties

Sea Area Use Management Methods 1992

Liaoning Province Detailed Implementation Codes for the Interim Management Rules for Sea Area

Uses

1994

Dalian Municipality Interim Management Rules for Sea Area Uses 1995

Hebei Province Detailed Implementation Codes for the interim Management Rules for Sea Area

Uses

1995

Guangdong Province Sea Area Use Management Rules 1996

Shandong Province Sea Area Use Management Rules 1997

Shanghai Municipality Sea Area Use Management Methods 1997

Xiamen Municipality Municipal Legislation for Sea Area Use Management 1997

Guangxi Region Sea Area Use Management Methods 1997

Qingdao Municipality Sea Area Use Management Rules 1997

Haikou Municipality Municipal Legislation for Sea Area Use Management 1998

Hebei Province Provincial Legislation for Sea Area Use Management 1999

Jiangsu Province Interim Management Rules for Sea Area Uses 2001

Hainan Province Sea Area Use Management Rules 2001

Fujian Province Sea Area Use Management Rules 2001


5. Assessment of current marine and coastal management

The present marine and coastal management system established in the 1960s fit in withthe traditional marine and coast uses in the planned economy and it was seldom modified.In the context of China’s economic and political reform, the current administrativestructure, planning and legislation are not suitable for modern marine industrydevelopment. In addition, some external factors, such as incomplete political reform,informal power (guanxi) also negatively affect current coastal management. The mainproblems of current coastal management are discussed below.

5.1. Incomplete reform from centralized governance to decentralized governance

Despite decentralization since 1978, centralization still holds sway in Chinese politics asChina is still in a transition from centralization to decentralization and the social actionsduring this transition are still complicated. In the tourism industry, the role of governmentis not well developed with the trends of decentralized governance. For instance, though thecentral government gives added responsibilities to local or provincial tiers of governmentand thus more authority to arrange their own issues, many decisions must still be approvedor permitted by the upper-level government. Privatization is also still limited within thecountry. Not many private actors can take part in the policy-making processes and therelations between public and private sector are still far apart.

5.2. Unclear agency responsibilities

China’s coast is presently divided into 11 provinces. Such fragmentation created manyobstacles to establishing more coordinated management among administrative units. Withdecentralized governance, the governments at five levels (state, provincial/municipality,city, county, and town) make their own policies, planning and regulations independentlyand all these policies may be different and even conflicting.

Even at the same administrative level, the jurisdiction of involved agencies can overlap.For instance, at the state level, the Oceanic Environment Protection Department under theSOA and the Oceanic Environment Protection Department under the State EnvironmentProtection Administration have similar functions and they all issue environmentprotection regulations. The Policy, Regulation and Planning Department within SOAand the Department of Development Planning within National Development and ReformCommission all have the right to issue regulations and planning about marine affairs whileother administrations also have the right to issue regulations related to marine sectors andthe right to make independent planning within their jurisdiction. It is difficult to clearlydistinguish their responsibilities.

The oversized administrative agencies, separate administrative agencies, and over-lapping jurisdiction led to inefficient administration, high administrative costs anddifficulty in coordination. There is no clear-cut division of work for certain new tasks,which result in various agencies doing the same work. Similar problems for coastal tourismmanagement also arise for local management. For instance, the Tourism Bureau and theCity Construction Bureau have overlapping duties for park and resort management insome coastal cities.


5.3. Lack of leading agency

Although the SOA is regarded as a powerful administrative agency to look after China’smarine affairs, it lacks the ability to coordinate all agencies involved in coastal zonemanagement and to implement ICM. That is due to the fact that the SOA is situated at thesame level as the State Fishery Administration, State Environment Protection Adminis-tration, and State Tourism Administration in China’s administrative hierarchy (Fig. 6). Itis in no superior position to coordinate all administrations related to coastal sectors and ithas no privileged power to deal with conflicts among sectors, such as fishing, mariculture,port, and coastal tourism. In short, SOA does not have the authority to coordinate allaffected sectors.At present the SOA is only in charge of administrating oceanic affairs and issuing

regulations about sea area use management (Table 3) while it neglects those coastal issueson the shore. In addition, it has no jurisdiction over any oceanic economic sectors, such asocean transportation, fishery industry, and oil and gas exploitation. Even in oceanicenvironment protection, it does not have supreme authority as oceanic environmentprotection is currently under the charge of the State Environment Protection Adminis-tration and academic study about coastal zone management is presently under the ChineseAcademy of Science. Such a narrow institutional set-up counteracts sustainabledevelopment of ICM [55].

5.4. Interfering informal power

Informal power (guanxi) has strong influence over the formal power-state structure [5].Guanxi is a set of interpersonal relation that facilitates exchanges of favors between people[56]. The most important characteristic of guanxi is reciprocal obligation and the parties inthis relationship derive benefits from the bilateral transactions. Louis Kraar has dubbedthis ‘‘Chinese art of reciprocal back-scratching’’ [57]. The Guanxi practice is increasinglyviewed as an illegitimate means to accomplish tasks [58] and it is an inevitable evil underthe current political and socio-economic systems in China. It is condemned as it facilitatesnepotism, unfair competition, fraud and bribery, and corruption [59].One kind of guanxi is to obtain ‘‘special treatment’’ from those who are in power [60].

Usually, there is a network of connections between business people and governmentofficials to exchange money and power. Some businessmen received special treatment, suchas tax evasion or exemption from pollution fines from government officers. Someindividuals were allowed to acquire rare marine resources from government officersthrough immunity from the law [60]. For instance, tourism developers can derive benefitsfrom landscape management committees through bribes. In this case, guanxi is inherentlycorrupt and obstructs the effectiveness of the state structure and functions [5]. As a resultof the corruption and reciprocity caused by guanxi, marine policies and laws issued bypowerful institutions may not be legitimately implemented.

5.5. Inadequate laws and enforcement

China fails to follow the United Nations Convention on the Law of the Sea (1982) whichencourages countries to issue more laws related to ocean use and ocean protection. Chinaonly issued eight laws, and some laws, such as the ‘‘Tourism Law’’, which was planned in


the late 1980s, has not yet been approved. The drafts of some laws are still being examinedand not approved. For instance, the Law on Exclusive Economic Zone and Coastal Shelfhas not been approved, although the state government decided to make it some years ago.Moreover, some laws shown in Table 3 were made before 1993 and their principles andregulations are more applicable to a centrally planned economy in socialistic China than amarket-driven economy.

Finally, China has passed many laws and legislations every year but the most seriousproblem lies in the interpretation and enforcement. In a society strongly influenced byConfucianism which advocates ‘‘the rule of man’’ and ‘‘the rule of morality’’, it is commonthat the enforcement varies from case to case [60]. In addition, it is tough to strictlyimplement these laws as all departments implement related laws separately and there is nolead department to take charge of them.

5.6. Nascent coastal tourism planning

Tourism planning in China kicked off in 1978, much later than western countries. In the1980s, Chinese tourism planning emphasized the construction of infrastructure andphysical amenities as the initial tourism destinations need infrastructure and facilities.However, most projects were blindly constructed regardless of market demand andenvironmental as well as social-cultural impacts [61].

With market economy, many coastal resources have been contracted out to privateenterprisers. Some private enterprisers who aimed to reap quick profits from resourcesseldom wasted money on resort planning. Hence, coastal tourism developed disorderlyuntil the year 2000 when governments in the coastal regions started to make coastaltourism planning. By then, it is difficult to change the chaotic situation.

Due to the legacy of hierarchical social structure, it is still difficult for the commonpeople to approach their superiors and participate in planning in China’s bureaucraticsystem [61]. Under the official ideologies of communism and socialism, individualism anddemocracy are discouraged. Current planning is mostly government and expert-drivenwhile other stakeholders are shielded from involvement.

China is also short of qualified and experienced planners in coastal tourism [6].Currently, planners are either government officers or professors from different disciplines,such as geography, economy, anthropology, and architecture. Most of them lackknowledge of coastal geomorphology, oceanic climate, and the coast’s impacts ontourism. Tourism planning requires the wisdom of multi-disciplinary expertize [6].

At the same time, a gap exists between planning and implementation. Most planningwas conceptualized on a theoretical base, which might not practical or feasible for actionsbecause the planners were short of practical experiences. Sometimes, the planners did notconduct sufficient background surveys and analyses for the conceptualized planning,resulting in failure of implementation. Misunderstanding also often arises duringimplementation as practitioners seldom communicate with planners. Sometimes, somepractitioners who pursued economic benefits would consciously breached planning whichaimed to protect the ecosystems [6]. Additionally, tourism planning at national, regionaland destination scales is not in harmony because the planners at different administrativescales make planning separately, making it difficult for practitioners to implement thegiven planning.


With the trend of globalization, foreign exports began to participate in formulatingtourism planning in China. Since 1997, the United Nations World Tourism Organization(UNWTO) has undertaken tourism master plans for Sichuan province (1998), Shandongprovince (2000–2001), Yunnan province (2000–2001), Hainan province (2001), Anhuiprovince (2001–2002), Guizhou province (2002), and Heilongjiang province (2002–2003)[62]. Among these provinces, Shandong and Hainan are coastal provinces and UNWTOrecommended taking advantage of these two provinces’ long coastline as a means ofdiversifying their variety of natural and cultural attractions. Especially, UNWTOformulated a Coastal Tourism Development Plan for Shandong Province in 2004 and aPlanning Framework for Development of Qingdao Marine Park and Yangkou HolidayResort in Shandong province in 2001 [62]. These master plans made by UNWTO haveunique characteristics. These plans put forwarded new ideas to China, such as savannatourism, backpacker tourism. They insisted expanding tourism based on the principle ofsustainability [63]. These plans gave detailed market analysis. They are easy to beimplemented as detailed recommendations were given, such as beach carrying capacity(10m2/person on beach), accommodation carrying capacity (25 rooms/ha in Hainan’sresorts; 80 rooms/ha in Shandong’s resorts). They are the first plans to consider tourism’simpacts in the short, medium, long-term. These master plans are humanistic which focuseson the satisfaction of tourist, training for tourism staffs and local residents’ welfare.However, the foreign plans also have some weakness as western exports face difficulties indeeply understanding the situation of China and Chinese culture [64,65]. For instance, theforeign plans deeply analyzed the international tourist market while the plans inexactlypredicted the domestic market; the foreign plans strongly recommend developing coastalresorts, which do not have comparative advantages in China while the plans under-estimated the value of Shandong’s Qi-lu culture [64,65].

6. Prospect of ocean and coastal management

From what have been discussed, it can be seen that the management functions ofChina’s administrations are exercised on a sectoral basis in China [17]. The administrationsin charge of different sectors or at different government levels make their own plans,regulations and implement their plans and regulations separately. It results in repeatedinfrastructure construction, duplicated tourism resorts, and conflicts of coastal resourceuses among different sectors [3]. Due to these issues, a new management approach isnecessary for marine and coastal management in China. Integrated management is widelyacknowledged as a suitable approach for coastal zone management in a sustainable way. Itdoes not emphasize the needs of a single sector but takes a holistic view and hence evensocial and political conflicts that arise can be addressed [5]. Integrated management is alsoused for coastal resort planning [66,67]. For instance, integrated resort planning isimplemented in Bintan Island, and Bali Island, both in Indonesia, and Phuket Island,Thailand [68–70].In fact, the integrated approach has been put forward for coastal management in China.

In 1994, three coastal cities in Guangzhou, Fujian and Hainan provinces became the pilotarea to test whether it is suitable for oceanic or coastal management in China. The OceanAgenda 21 of China in 1996 advocates that China should enhance integrated oceanresearch, reorganize integrated administration, implement integrated policy, planning, and


set up an effective integrated law/regulation system. Ocean function zoning, an importantstep towards carrying out this approach, was approved and implemented in 2002.

In the years to come, it will be necessary for China to build up a centralized andintegrated ocean bureau superior to other marine sectors-related administrations, just likethe most powerful ministry—Ministry of Marine Affairs and Fisheries (MOMAF) inKorea [71]. It is crucial to coordinate the central government and the lower-levelgovernments during the transition from centralized governance to decentralizedgovernance. On the one hand, the lower-level governments should strictly follow theregulations issued by the central governments. On the other hand, the lower-levelgovernments should have autonomy to manage issues. It is imperative for China to buildup an integrated ocean planning system like the Regional Marine Planning underAustralian’s Oceans Policy undertaken in 2002 in Australia [72] and to build up anintegrated legislation system. Especially, it is essential for China to approve an Ocean Lawto implement integrated management like the Canada Marine Act in Canada [73].

Although ICM is an appropriate approach, it still faces challenges for implementation inChina. The implementation of the ICM framework is often constrained by the politicalsystem within which it should be applied [5]. In China, the fragmented administration, themany levels of administration and the complexity of administration are obstacles toimplement integrated management. Centralized governance under the one party politicalsystem restricts the coordination of different levels of governments and counteracts thecooperation of social actors. In addition, the lack of political transparency enhances thedifficulty in harmonizing top-down and bottom-up. Due to these, integrated managementwill be implemented gradually with the deepening of political reforms in China as thisapproach is essential to China.

As coastal tourism is one component of all marine industries and coastal tourismmanagement is a sub-component of coastal zone management, coastal tourism can beenhanced by ICM, which can deal with the conflicts between coastal tourism and othermarine sectors, resolve overlapping responsibilities of involved agencies and increase thecooperation between coastal tourism and other marine sectors. Finally, the integratedmanagement approach should not only be applied for general coastal zone managementbut also for special coastal tourism management. Coastal tourism in China is still in thetake-off stage and in the future the integrated management should be used for coastaltourism management towards sustainability.

7. Conclusion

The evolution and management of marine industries including coastal tourism in post1978 had distinguished characteristics as they were strongly influenced by the political andeconomic structure reform in China. With the fast development of these marine industries,issues about oceanic resource uses were serious. Coastal zone legislation, managementinstitution, policy, and management procedures are critical to resolve resource useproblems in China. However, current institutions, management structures and evenChinese culture restrict coastal zone management in a sustainable way. For instance,administrative agencies’ responsibilities are not clear-cut, it is short of a leading agency tocoordinate all administrative agencies, informal power-culture feature has strong influenceon formal power-administration, and the law system is not sound.


In this case, a new management approach is needed to deal with current managementissues. There is merit to develop ICM. Although there are difficulties in its implementation,coastal zone management including coastal tourism management in China should followthe direction of a transition from current fragmented/sectoral management to the ICZMapproach which can lead to sustainable development. When applying ICM to China, themanagers should not only open their minds and learn management experiences from othercountries but also be vigilant against the weaknesses caused by specific aspects of theChinese culture.

Acknowledgment

The fieldwork was made possible by a National University of Singapore research GrantR-109-000-055-112.

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Coastal zone management focusing on coastal tourism in a transitional period of China

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