Exploration of High Investment,Low Return Phenomenon of Tourism Industry

Tourism investments have increased rapidly ever since the Reform and Opening-up,and have even surged in the new millennium. Even though tourism statistics is not comprehensive at all due to vague boundary of the tourism industry,tourism investments demonstrate such characteristics as broad scope,large scale,high total amounts and rapid growth according to existing data. Based on benefit analyses of tourism enterprises,the author finds that the return of tourism investment is quite low. Average return on equity of tourism enterprises was lower than loan interest rate in many years. This paper attempts to explain the reason why high tourism investments lead to low return.