Through a brief review of the contemporary theory of competition, th is article points out that the
effective competition is the final goal which the
market structure of
tourism should head for. The effective competition can prev ent not only the excessive price war, but also the monopoly. It can also obtain the economy of scale as well as keep the vitality of competition at the same tim e. In this article, a theoretical framework of tourism's effective competition i s presented as SCB(II). Then it is concluded that in order to obtain the effecti ve competition, the first step is to increase the entry
barrier and lower the re treat barrier. The increased entry barrier is the only way that can keep the new ly entered
increment from becoming duplicated constructions of low level, and en sure that the increment will stimulate the tourist economy to grow effectively. On the other hand, the lowered retreat barrier will make the
enterprises produci ng ineffective supply withdraw from the market as soon as possible, so that the newly added resources can be effectively disposed and the competitive strategies of the advanced enterprises can take effect. As a result, the competition in th e market will be in good order. However, all this depends on the turnover that all the tourist enterprises become the rational market bodies. The article deni es the simplified and dogmatic refusal of the enterprises to enter into the mark et. The article also defines the concepts of
final retreat and operational retre at of tourist enterprises.
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