Song County’s Beauty Is Even Better Without Admission Fees.
Key Points
In recent days, both Fenghuang Ancient Town in Hunan and Song County in Henan have become the focus of public attention. Fenghuang Ancient Town has gained attention because it has started charging admission fees—visitors must now pay 148 yuan as an “entry fee” to enter what was once a free town; Song County has gained attention because it announced that starting April 30, all A-level scenic spots within the county, including the 5A-rated Baiyun Mountain, will offer free admission during designated time slots and regions. Both are developing tourism economies but have taken completely opposite approaches, sparking different social reactions. So, how should the economics of tourism be managed to achieve both economic and social benefits?
Two Incidents
Fenghuang Ancient Town Announces Price Hike, 5A-Rated Song County Goes Free Nationwide
Fenghuang Ancient Town, the beautiful and serene “border town” depicted by Shen Congwen, was once praised by the renowned New Zealand writer Louis Hocken as the most beautiful small town in China. This town is a must-visit destination for many artistic youth, where they can spend a month or so. It carries the alternative aspirations of many people, and some have even chosen to stay there permanently and start a new chapter in their lives.
On the eve of this year’s Qingming Festival, the local government of Fenghuang Ancient Town announced that starting April 10, all visitors must pay 148 yuan as an “entry fee” to enter. This means that the once backpacker-beloved Fenghuang Ancient Town will bid farewell to its free era. From now on, non-locals wishing to enter the ancient town will need to pay the “entry fee.” Media reports say that Mr. Huang, who lives within the scenic area of Fenghuang Ancient Town, had to buy a ticket even to bring his girlfriend from out of town to meet his parents.
Against the backdrop of the frequent “price hikes” at domestic scenic spots and Fenghuang Ancient Town’s shift from free to paid entry, on April 13, Henan’s Song County announced that starting April 30, all A-level scenic spots in the county would be open to the public nationwide free of charge. These include the national 5A-rated Baiyun Mountain, the 4A-rated Tianchi Mountain and Muzhaling, and the 3A-rated Wolong Valley. Such generous free admission has earned widespread praise across the country. One netizen commented, “Is Song County’s nationwide free admission policy a challenge to Fenghuang Ancient Town? Satisfying—our common folks have won one!”
Two Reactions
Fenghuang Merchants Strike in Protest, Song County Locals Eagerly Await
Due to the introduction of the entry fee on April 10, tourist traffic in Fenghuang Ancient Town has sharply declined. One inn owner told reporters that the number of tourists has dropped to only three-fifths of the usual amount since the fee was introduced. Another inn owner said he had spent hundreds of thousands renovating his property and still had bank loans to repay. With no tourists checking in, what could he do? On April 11, some merchants in the ancient town began shutting down their businesses in a “strike.”
After Song County’s free admission policy was announced, reporters from Dahe Daily immediately interviewed merchants near the scenic areas. A busy restaurant owner, upon hearing about the free admission, quickly put down his work and asked the reporters for details: “When does the free admission start? How long will it last?” According to the restaurant owner, Song County had previously tried free admission after the National Day Golden Week last year. “Basically, there were no tourists after National Day, but once admission was free, a lot of people suddenly came. My little restaurant was packed every day, turning tables three or four times at lunch.”
Wang Jifang, head of the 4A-rated Tianchi Mountain National Forest Park Administration, vividly remembers the bustling scene during last year’s free admission period. “Normally, there are hardly any tourists after National Day, but once admission was free, the scenic area was packed with people, full every day. For safety reasons, we even had to close the park temporarily. Products in the shops—like ham sausages, instant noodles, and tea eggs—anything edible—were all sold out.”
Admittedly, the free admission policy has the greatest impact on scenic spots, directly reducing ticket revenue. But Wang Jifang doesn’t see it that way. “Although the tickets are free, more tourists come, and income from other operational projects within the scenic area naturally increases. Moreover, this year’s free admission is timed and zoned, so the lost ticket revenue can be offset by visitors who don’t benefit from the free admission. Free admission boosts the visibility of the scenic area—I support it.”
Two Calculations
Charging Admission Brings Fiscal Revenue, Free Admission Enriches Locals
Because it suddenly included the ancient town in the paid admission zone, the Fenghuang County government has faced widespread controversy. At the press conference, the official explanation was that charging admission was meant to integrate tourism resources, improve management and service quality, and protect the “historic and cultural city” brand image of Fenghuang. However, some questioned whether the government’s real motive was the 60-yuan commission per ticket. Official data shows that in 2012, Fenghuang County received 6.9 million tourists, generating total tourism revenue of 5.301 billion yuan. Based on these visitor numbers, the government’s annual ticket commission alone would exceed 400 million yuan.
Like Fenghuang Ancient Town, in recent years, the admission fees for many scenic spots across the country have entered the “100-yuan era,” with price hikes coming one after another. Against this backdrop of constant “increases,” why is Song County going against the tide and making all its scenic spots free? Fan Xiaohong, director of the Song County Tourism Bureau, explained using the results from last year’s free admission period. “After the National Day Golden Week last year, from October 9 to 21, Song County offered free admission for 13 days. Although it lost over 15 million yuan in ticket revenue, the overall income reached more than 57 million yuan, an increase of over 40 million yuan compared to the same period. The number of visitors surged to 220,000, a year-on-year increase of 687%, and sales of local specialties increased by 30 times. Overall, more tourists came, and the economic benefits expanded. Don’t block tourists out just because of one admission ticket. Once tourists come, spending on food, accommodation, transportation, sightseeing, shopping, and entertainment generates economic benefits and brings more income to locals.” Fan Xiaohong believes that income after free admission will definitely exceed previous years. “We are very optimistic about this.”
“Last year, during the 13-day free period, hundreds of thousands of people suddenly poured in. Locals had never seen so many people or cars, and everyone made money,” Fan Xiaohong explained. Now, Song County is fully focused on tourism development, with every household wanting to spruce up their homes to run family guesthouses. “Previously, potatoes were fed to pigs, but now they can be sold at good prices. The enthusiasm among locals is indescribable.”
Expert Opinions
Natural Landscapes and Heritage Sites Should Be Free, Forcing Admission Fees Is “Competing with the People for Profit”
Song County’s free admission policy has also caught the attention of Dr. Ma Xiaolong, deputy director of the Regional Tourism Development and Planning Research Institute at the China Tourism Academy. “Natural landscapes and heritage sites left by our ancestors should be shared by all people. Allowing ordinary citizens to enjoy these resources is something Song County has set a great example in. In tourism research, we often admire the fact that Hangzhou’s West Lake is free.” Since October 2002, the West Lake scenic area in Hangzhou has been free of charge, which not only stimulated consumption and improved tourism quality but also significantly boosted total revenue. Before West Lake became free, Hangzhou’s total annual tourism revenue was 54.9 billion yuan. Last year, that figure reached 119.1 billion yuan.
Dr. Ma Xiaolong believes that the goal of developing the tourism economy is to help locals achieve prosperity and provide tourists with better service experiences. Although waiving admission fees reduces ticket revenue, the increased number of tourists leads to greater consumption, bringing more benefits to local residents. “Consumption is what truly benefits ordinary locals.”
Zhang Youyin, a researcher at the China Tourism Academy and a Ph.D. in tourism management, believes that tourism is a comprehensive industry encompassing six major sectors: food, accommodation, transportation, sightseeing, shopping, and entertainment. Ticket revenue accounts for only one-sixth of the tourism industry chain. “The ticket economy is the lowest level of the tourism economy. The more developed a region is, the smaller the proportion of ticket revenue. The mainstay of the tourism economy lies in accommodation, dining, and shopping. For example, Hong Kong’s tourism economy mainly relies on shopping. Tourist traffic is the greatest asset in tourism. When people come, stay, shop, eat, and use transportation here, it drives the economic development of the entire region.”
Reminder
Free admission for some scenic spots in Song County runs from April 20 to October 30. Visitors must present valid personal identification to enjoy free admission to all scenic spots (points) within the activity period and scope. The activity targets different provinces, cities, and regions each month. For example, tourists from Zhengzhou can visit Song County for free admission from June 10 to 16.
Micro Comments
@English_Lovers_Henan_University_of_Technology: Personally, I feel that Henan’s Song County offering free admission to different regions and time periods nationwide yields far greater advertising benefits and stimulates greater county tourism consumption income than the loss from ticket fees. Fenghuang City charged admission, but it caused immeasurable losses to surrounding consumption and its reputation—it’s truly not worth it.
@Ruoshuixingzhe: When Fenghuang Ancient Town recently adopted a short-sighted price hike strategy, while scenic spots like Baiyun Mountain in Song County, Luoyang, took the opposite approach by waiving admission fees for several months. Which scenic area will achieve greater popularity, influence, and overall tourism revenue? Even though Fenghuang Ancient Town currently enjoys far more influence than Song County, if this trend continues, more people are likely to choose destinations like Song County. Shouldn’t Fenghuang learn more from Song County and Hangzhou’s West Lake?
@Dahe Hanjiangxue: Song County is focusing on tourism economy, while Fenghuang is fixated on ticket revenue.
@Hu Chuan Chun V: 4A-rated Fenghuang lies in Hunan, the government craving ticket cash, media spotlight mocks and teases, free visits no longer exist, charging Fenghuang worse than a chicken, killing the goose that lays the golden eggs harms itself; 5A-rated Song County in Henan, free entry with proof lets you play, fairyland Baiyun Mountain, splendid Central Plains scenery, backyard garden of ancient Luoyang, renowned across the land north and south of the Yangtze.
@Polaris in the Rain: The whole family has ID cards from different cities—this is confusing.
@Dahebao [Good Night, Henan]: When Fenghuang charges fees, people curse; when Song County offers free entry, some suspect hype. Government interference in the market is met with jeers everywhere. The government should be a regulator of the tourism market—not overstepping nor underperforming—that’s the “action” a modern government ought to take.