Those Years When I Was Forced to Top the Forbes List

Chapter 161 Supply-Side Reform...A Flash of Inspiration

9:30 AM, Chongqing Jiaotong University.

Professor Dong, teaching "Tourism Economics," was speaking animatedly on the podium.

"In 2003, Zhang Hui, the president of the China Management Institute, and others reflected on and criticized the views of tourism economics, arguing that studying tourism products as the core was insufficient to fully grasp the essence of tourism economic phenomena."

"Therefore, we propose to take the economic phenomena, relationships and laws expressed by the movement of tourist source areas, destinations and connecting bodies caused by the spatial movement of tourists as the research object."

"In the same year, the industrial economics perspective emerged, represented by Serbian economist Slobodan Onkovic, who believed that tourism economics is a discipline that studies various economic phenomena and relationships in the operation and development of the tourism industry, and that this discipline falls within the scope of both macroeconomics and microeconomics."

Professor Dong picked up a pen and wrote "Serbia" on the blackboard, followed by a string of names that were hard to remember.

At that moment, someone seized the opportunity and entered through the back door outside the classroom.

Chen Xuebing's plan was to "enter the village quietly, without firing a shot."

Just as he found a seat and sat down, Sun Rui next to him exclaimed "Holy crap!" before lowering his voice:

"Mr. Chen, you're back?"

Many people turned back.

Silence followed by hushed discussion.

While the teacher was writing that long string of names, Sang Liwei, who shared a dorm room with him, openly raised his hand and gave him a classic Nazi salute, as a sign of welcome.

A soft chuckle.

Chen Xuebing forced a smile, then quickly raised his hand to suppress it, signaling him to keep a low profile.

"On a side note... cough." Professor Dong finished writing and turned around, just in time to see the two exchanging glances, and coughed.

"Is this student new here?"

Chen Xuebing stood up somewhat awkwardly, without saying a word.

He thought to himself, "Damn it, I'd rather not come at all than come to this class."

This is a core course. If Professor Dong notes it down and I fail the course, I'll have to shamelessly beg the dean for help.

But the problem I feared most still came.

"What's your name?"

Four names immediately came to mind for Chen Xuebing.

They're all from room 306.

But looking around, it seems that all four owners of these names are present.

While hesitating, Cheng Danting, who was sitting in front, spoke up for him: "Teacher, he asked the school for leave and just came back."

Professor Dong frowned: "Taking leave as a freshman?"

"He's the big boss, he's away on a business trip!" someone said.

Chen Xuebing cursed inwardly, glanced at the person who spoke, and silently added him to the blacklist of the "Group's High-Salary Special Recruitment" quota.

But then, the classroom became lively.

The students in the front row told Professor Dong that Chen Xuebing was the class's Youth League secretary and also ran a business, so he was very busy.

Professor Dong understood what Yunyun had said. He vaguely remembered hearing someone mention this student before. Although he was a little dissatisfied, seeing the classroom was noisy, he waved his hand, looked away, and resumed his lecture.

"Just a quick aside."

"Serbia, is this country familiar to everyone?"

The classroom fell silent again.

Universities generally don't punish students by making them stand, and Chen Xuebing didn't want to stand and become a target of attention. Seeing that Professor Dong wasn't looking at him, he slowly sat down again.

I sighed inwardly.

I finally became a class representative in college and was planning to say goodbye to my bad student image from high school, but now I've become everyone's truant king again.

The silence was temporary; gradually, people around began to speak:

"familiar."

"The Kosovo War!"

"The Balkan countries!"

The Balkans were, after all, the epicenter of the wars in the 90s and are still known as the "powder keg of Europe." People born in the 80s and early 90s have all seen news reports about it.

Professor Dong nodded, then turned his head and saw Chen Xuebing had sat down. He then raised his hand towards him:
"Your class monitor, do you know anything about Serbia?"

Chen Xuebing was stunned for a moment before realizing that Professor Dong was calling on him.

I only panicked for a second.

He then realized that this might also be an opportunity to show off.

Having returned from that era, how could anyone not know this Serbian? He was practically a model of the RMB in Europe.

“I know.” Chen Xuebing stood up and answered clearly, “The foundation state of the Federal Republic of Yugoslavia, a strategic location in Europe. After the collapse of the Soviet Union in the early 90s, Yugoslavia lost its strategic buffer zone between the US and the Soviet Union and was disintegrated due to political interference. Serbia and Montenegro formed the Federal Republic of Yugoslavia, which was renamed “Serbia and Montenegro” in 03. We call it Serbia and Montenegro.”

"Hmm..." This answer surprised Professor Dong. "Then, have you ever looked into Serbian culture?"

This question is a bit beyond the scope of the curriculum.

But seeing that Professor Dong seemed determined to stump him, Chen Xuebing felt he had to say something.

"The Slavic people, they worship Orthodox Christianity, are seen as aggressors by Westerners, and love to fight. However... Yugoslavia used to serve as a buffer zone, taking advantage of both the US and the Soviet bloc, and its East Slavic ancestry is not quite the same as that of Russia."

“That’s a political perspective.” Professor Dong finally smiled. “However, understanding a country from the perspectives of national character, religion, and geography is a sound methodology.”

He realized that the Youth League secretary wasn't stupid, so he stopped arguing, threw his pen on the table, and continued talking with his hands behind his back.

"In his book 'The Economics of Tourism,' Serbian Slobodan Onkovic points out that tourism consumption only occurs when those who need tourism have a sufficient amount of money and free time to satisfy their needs."

"However, American economist Theodore Schultz's theory of human capital proposes that human capital is a variety of acquired, valuable factors of population quality that can be increased through appropriate investment. Human capital can be accumulated through various means such as acquiring information and improving adaptability to market changes, receiving education, seeking better job opportunities and more suitable places to live."

"People travel to places of non-residential stay for short periods of time. Regardless of their motivations or activities, they always broaden their horizons and acquire information through such activities. Their behavior falls within the scope of human capital accumulation as described in Schultz's human capital theory."

"According to studies from various countries, people are gradually coming to regard tourism as a way of self-cultivation."

"Therefore, the Jiuzhaigou case we just mentioned not only prevents low-income people from enjoying the consumer experience of natural scenic spots, but also stifles the already limited opportunities for low-income people to invest in human capital."

Chen Xuebing then understood that they were talking about Jiuzhaigou raising its ticket price to over 200 yuan this year.

Since his rebirth, he has been reading newspapers and news frequently, so he knows that after the song "The Magical Jiuzhaigou" became popular in 99, tourism in Jiuzhaigou also became very popular. Prices have increased three times in a few years, and this year a hearing on the price increase was held, causing quite a stir.

However, the idea of ​​"treating tourism as a form of self-cultivation" actually appeared in a class in 05, which was beyond his expectations.

This is indeed a major trend for the future. The idea that "tourism is a form of self-investment" was once popular on Douyin (TikTok), resonating with many young people.

This shows that academic research is not just about summarizing and generalizing, but also involves a certain degree of foresight.

"Jiuzhaigou is managed by two county-level departments: the Nature Reserve Administration and the Jiuzhaigou Scenic Area Administration. The goal of government departments in managing natural tourism resources is to maximize social welfare, not to maximize profits like private enterprises. Do you think it is reasonable to rely on ticket revenue as the main source of income?"

Given the context, even a fool would know the answer the teacher wanted, and they all shook their heads.

Professor Dong's questions came one after another.

"How should the revenue structure of the tourism industry be adjusted? How should fees be charged?"

"Ticket price reduction or exemption!"

"Develop value-added services!"

"Tourist attractions should be turned into public welfare projects! We are a communist country, this is infrastructure!"

One answer after another was thrown out from the audience, and Professor Dong smiled.

"So you're all unemployed? You'll have nowhere to go except the tourism bureau. Tourism revenue is an important part of local revenue in our country. You're still students majoring in tourism management, don't be so naive."

A burst of laughter.

But these students couldn't say much specific information either.

Chen Xuebing suddenly thought of a word.

"Supply-side reform".

His voice was soft and light, but Chen Xuebing became the center of attention wherever he was, and everyone noticed him.

Professor Dong noticed this new term and turned to look at him. "Youth League Secretary, what do you think?"

Chen Xuebing, of course, did not miss this opportunity to turn his image around. He carefully considered his words and slowly stood up.

His very first words were astonishing.

"Teacher, I think what you just said is wrong. The government's management goal should not be to maximize social welfare, and the goal of enterprises should not be to maximize profits. Neither of these two extreme mindsets can make good tourism products. The adjustment of the profit structure of tourism products should rely more on market thinking and market forces."

A gasp.

His opening remarks were so impressive.

For some people who have visited Chen Xuebing's company and witnessed his meetings, the figure that had faded from their memories over time is slowly becoming clear again.

Here he comes again.

When Professor Dong first heard this statement, he felt that it was different from what he wanted to say: "taxing individuals and entities that benefit from the expansion of tourism areas."

But nothing substantial was mentioned.

He gave an "oh," crossed his arms in a defensive stance, and slightly raised his chin at Chen Xuebing: "Be more specific."

"Okay, let me be more specific." Chen Xuebing grew stronger when facing a strong opponent, and his momentum immediately increased.

“Starting from improving effective demand, we can form and adjust mechanisms, such as adjusting taxes, adjusting ticket prices, limiting the flow of people to scenic spots, and diverting popular scenic spots to less popular ones. I call these demand-side reforms.”

"As the economy develops and the country's birth policy changes, the aging population increases, the cost of living rises, young people become busier, and tourists' needs will continue to change. They will become more and more discerning and use their limited time and money to experience better products."

"There shouldn't be any need for discussion on this, right? The definition of the principal contradiction in the primary stage of socialism is the contradiction between the people's ever-growing material and cultural needs and the backward social production."

"Therefore, we must start from the supply side, reform and upgrade our products, strengthen the supply of high-end products, and meet the people's needs for a better life."

What is high-end?

Chen Xuebing asked the question and scanned everyone, already showing signs of overstepping his bounds.

Professor Dong's throat moved, but there was nothing in his throat, and he couldn't spit anything out.

This question seems a bit beyond the scope of the curriculum.

Chen Xuebing raised one hand, counting on his fingers, and casually uttered in Mandarin: "Personalization, customization, new technologies, new models, and industrial integration."

I'll take it...

Chen Xuebing recalled the various scenic spots in his mind.

On the last day of military training, the students suddenly had a discussion about tourist attractions.

Fengdu Ghost City, the Three Gorges, and Jiuli.

He had a flash of inspiration.

He had actually been to Jiuli City a few times in his previous life.

"Let me take Chiyou Jiuli City in Pengshui County as an example!"

"A huge Miao architectural complex built against the mountain, a real-life version of the Nine-Story Demon Tower, is indeed very beautiful."

"However, the supply is too limited. How many people are willing to travel all the way to Pengshui just to see this one scenic spot? Most people would say that it would be better to just visit Hongyadong in Chongqing."

"In fact, Pengshui itself is very beautiful. It is surrounded by rivers on two or three sides, with continuous mountains all around. There is the Ayi River and the Wujiang Gallery. Along the river, there are mountains and water, and it also has a unique culture."

"If I were to develop it, I wouldn't waste a single inch of this beautiful scenery."

"First, we need to expand the length, width, depth, and relevance of our product line to create a broader and higher positioning."

"Mountain retreats, water sports, ethnic culture, and health and wellness."

"Treehouse villas, oxygen bar, manor, cycling path, water entertainment projects, specialty food street and restaurants, adventure bar town, folk culture performance square, Miao costume experience hall, glass walkway, mountain yoga."

"Customized tour menus and personalized travel routes tailored to your individual needs by a private guide."

"Technically, we've incorporated customized internet services, virtual tours via official website videos, and online monitoring along the route to ensure tourist safety, among other things."

"In addition, special scenic spots offer free open days, which not only allows ordinary people to experience the Miao culture and the wonders of the mountains and rivers for free, but also allows high-end customers to meet additional quality requirements."

"Actually, if we were to be even bolder, we could add many more elements. Starting from Chiyou Jiuli City in the county town, we could carry out in-depth development of the long mountain and water route that stretches for dozens of kilometers. Here, I can meet half of people's needs for ecotourism and lifestyle enjoyment."

"As for the other half, it should be in the ocean."

Chen Xuebing spoke slowly, and everyone fell silent. They even forgot to applaud when he finished.

Even he himself almost entered the painting.

He had never imagined that the place where he had worked on two and a half projects and traveled thousands of kilometers by motorcycle had such a strong development foundation.

"Hmm..." Professor Dong lowered his arm and couldn't help but sigh.

"If such a place existed, I would probably like to go there too."

Then he frowned and said, "It's a pity it's too far. Also, although Chongqing is a municipality directly under the central government, it's not very developed. Can this kind of development even break even?"

"Teacher, you said that Chongqing is a municipality directly under the central government and was just designated as a national-level important central city by the Ministry of Construction this year. How could its future development be bad?"

Chen Xuebing smiled confidently.

It was even a bit provocative.

In order to communicate the industrial plan with Secretary Jiang, he had researched a lot of information about Chongqing. With a thorough understanding of its development in later generations, it would not be an exaggeration to say that he had a complete grasp of the situation. If anyone wanted to argue with him, he could battle with Old Dong for a whole morning.

Unfortunately, after thinking for a long time, Professor Dong felt there was no need to argue, and simply nodded in agreement, saying, "Reforming from the supply side is a good idea, and the specific ideas are also good, but tourist attractions are a scarce national resource, and it will probably be difficult to completely take the commercial route."

After saying this, Chen Xuebing lost the desire to argue.

You think I don't understand resources.

All I can say is that you don't understand local government.

……

In the second half of the class, Professor Dong skipped a bit and, following the discussion, talked about the scarcity of high-quality tourist source areas.

Chen Xuebing listened in deep thought.

Even after class ended, I was still lost in thought.

He had never had such a long period of focused attention since his rebirth.

Until a pale white hand slammed on his table.

"Oh!"

"When will it be developed? I want to go play it!"

Chen Xuebing looked up and saw Hu Li's mischievous smile almost right in front of him, her loose hair completely blocking his view.

"playing what?"

"Chiyou City! You talk a good game about it, huh? Don't tell me you're not tempted!"

"You're paying?" Chen Xuebing glanced at her. "When did you get that big perm?"

Hu Li chuckled and tossed her hair: "Am I beautiful? Praise me."

Chen Xuebing curled his lip: "Ugly as hell."

"That's really rude of you." Hu Li rolled her eyes. "By the way, does your girlfriend really look like Liu Yifei? I just read the news about her. She had her coming-of-age ceremony at the State Guesthouse this August, and I heard it cost 1.8 million yuan! Her godfather is incredibly rich, one of the top ten richest private entrepreneurs! Don't you think so…?"

"Stop spreading these damn rumors."

Chen Xuebing stood up, patted her on the head, and walked to the front row next to the figure who was deliberately and slowly packing up her books.

"Squad Leader Cheng, thank you for your help with the Youth League committee matters lately. I even stood you up at the sports meet, which I felt really bad about. I've been saying I'd treat you to a meal, and since I don't have any classes this afternoon, I've made a reservation at a restaurant. Would you do me the honor?"

Cheng Danting paused for a moment, looked up, and smiled:

"You're being too polite, we're all classmates..."

"You've already persuaded Zhuge Liang to come out after three visits to his thatched cottage, so don't refuse. You said you'd treat me to a meal during military training, so you should treat me first this time, right?"

"Okay, my treat." Cheng Danting changed the subject abruptly, "But I can't book a reservation at the VIP restaurant you're going to. Ya Yuan, simple food, do you want to come?"

Chen Xuebing smiled.

"Let's go, you might not know the food at Ya Yuan better than I do."

(End of this chapter)