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Article

Research on Industry Transformation Models and Influencing Factors of Hot Spring Villages from the Perspective of Sustainable Development: A Case Study of Fujian, China

by
Lihua Liu
1,2,
Yuping Chen
2,3,*,
Wei Li
2,3,*,
Yanfang Zeng
2,3 and
Mingshui Lin
2,3
1
Ocean College, Fujian Polytechnic Normal University, Fuqing 350300, China
2
The Higher Educational Key Laboratory for Smart Tourism of Fujian Province, Fuzhou 350117, China
3
College of Culture Tourism and Public Administration, Fujian Normal University, Fuzhou 350117, China
*
Authors to whom correspondence should be addressed.
Sustainability 2023, 15(13), 9872; https://doi.org/10.3390/su15139872
Submission received: 17 May 2023 / Revised: 19 June 2023 / Accepted: 19 June 2023 / Published: 21 June 2023
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Abstract

:
The industrial transformation of hot spring villages is an important means to promote the sustainable development of the rural economy and achieve common prosperity. This study aims to explore the models of hot spring industrial transformation and reveal the influencing mechanisms in hot spring villages. Based on the theory of rural industrial transformation, an evaluation index system was constructed to measure rural industrial development by using the attribute data of enterprises in hot spring villages. Taking 19 typical hot spring villages in Fujian Province of China as examples, this study explores the process, models and influencing factors of the industrial transformation of hot spring villages from a sustainable perspective. Research results show that (1) the industrial transformation of the hot spring village includes the initial development stage and the rapid development stage, with the leading industries being transformed into service industries. (2) The industrial transformation of the hot spring village presents a gradual transformation model from hot spring aquaculture to hot spring processing and hot spring services, which not only reflects the transformation process of the hot spring village from the development of its primary industry to that of its secondary and tertiary industries, but also reveals the transformation trend of specialization and the high-end productive service industry and the convenient and high-quality transformation process of the living service industry. (3) The influencing factors of the industrial transformation of the hot spring village mainly include location conditions, the demand of the rural hot spring tourism market, government funding policy support and the choices of local villagers. This study not only enriches the theory of industrial transformation in resource-based rural areas, but also provides decision-making references for the sustainable development of hot spring villages in practice.

1. Introduction

It is well known that hot springs are not only important water, geothermal and mineral resources, but also important industrial resources for rural revitalization. The value of the global hot spring industry is approximately USD 50 billion per year [1], and about 70% of the global hot spring spots are located in rural areas [2]. Hot springs are the center or focus of rural life and play an important role in the self-sufficient rural economy in countries and regions such as Japan and South Korea [3,4]. China is rich in hot spring resources, with an estimate of over 2000 hot spring spots in rural areas [5]. The hot spring industry provides about two million jobs each year, creating an output value of about USD 200 billion [6]. The development of hot spring resources plays an important and positive role in increasing the employment of villagers, improving rural financial income, promoting the sustainable development of rural industries, and achieving common prosperity [7,8]. The huge market demand and attractive market prospects have made rich and high-value-added hot spring resources a hot investment topic [9], which gives hot spring tourism enterprises greater advantages [10]. However, compared with Europe, the United States, Japan, South Korea or Taiwan of China, where the hot spring industry is well-developed, the development of hot spring resources in the Chinese mainland is generally late, and the hot spring resources’ utilization is not high. Although some villages have begun to explore the refined development model of hot spring health care and hot spring tourism [11], most of the villages mainly take the extensive development model of traditional agricultural irrigation, aquaculture and bathing. As China’s economy enters a stage of high-quality development, the concept of green development and sustainable development requires the continuous adjustment and optimization of rural industrial structures. As Yu pointed out, the sustainable development of the hot spring industry can be achieved through the establishment and improvement of laws and regulations by the government, the adoption of protective measures by investors, and the development of hot spring cultural characteristics by managers and designers [12]. Wu proposed a “hot spring+” model for the sustainable development of hot spring resources, that is, by promoting the integration of hot spring tourism with industries such as agriculture, forestry, culture and sports, the effective development of hot spring resources and sustainable development of the hot spring industry can be achieved [13]. In addition, there are also discussions on the sustainable development of hot spring destinations from the perspectives of tourists and community committees [8,14]. Therefore, how to revitalize hot spring assets in rural areas and promote the transformation of hot spring resource development from an extensive model to a refined and green model is the key to the high-quality development and comprehensive revitalization of the hot spring rural industry in the new era.
Industrial transformation refers to the state or process of significant changes in industrial structure, scale, organization, and technical equipment caused by the reorganization of capital, labor, technology and other factors among various industries [15]. It is not only an important driving force for promoting high-quality urban and rural development, but also a fundamental way to achieve comprehensive rural transformation [16]. Rural industrial transformation drives rural economic development through rural industries’ development, and promotes the integrated development of urban and rural areas and resource allocation [17,18,19]. In recent years, scholars have conducted research on rural industrial transformation, from the perspectives of aspects such as land use [20,21,22,23], spatial governance [24,25], and rural elites returning to rural areas [26,27]. Fruitful results have been achieved, especially in terms of spatial governance, which have provided great implications for the research of the industrial transformation process of hot spring villages from three aspects.
Firstly, as a special state-owned asset, the development, utilization and protection of hot springs cannot be separated from individuals, collectives or state-owned enterprises. Hot spring tourism enterprises are the main body of hot spring industry development and play an important role in its transformation process. Furthermore, stakeholders like farmers, operators and governments also actively promote the industrial transformation of hot spring rural areas from various aspects. For example, the interaction between hot spring tourism and real estate projects’ construction has driven the transformation of hot spring tourism economic development [28]. The collaboration between local governments and real estate developers has largely led the evolution of local regulations for hot spring resources, as they adapt to the market-oriented transformation of the hot spring industry [29]. Enterprises can develop rural hot spring tourism and optimize the spatial layout of hot spring industry development by utilizing the spatial integration centered on hot springs and the connection of surrounding resources and transportation networks [5,30]. Secondly, as a tourism resource with weak substitutability of heterogeneous resources and strong substitutability of similar resources, the development of hot spring tourism destinations tends to exhibit a trend of homogenization. As rural hot spring tourism enterprises gradually break through regional restrictions and develop outward, with the investment scale of hot spring tourism also increasing, the competition between hot spring tourism destinations and industries is extremely fierce [31,32]. Therefore, improving the competitiveness of the hot spring industry through good cooperation with hot spring operators [33], developing multiple hot spring industry chains [13], and constructing hot spring leisure areas [34] is of great significance for promoting the transformation and upgrading of the hot spring industry and revitalizing traditional hot spring areas. Thirdly, the development model of the hot spring village has changed from a single to diversified business models [35], and is comprehensively influenced by the driving forces of hot spring development, the intensive degree of resource utilization, the connection between hot springs and other industries, hot spring theme culture, the generation of hot spring resorts, and the operation and management of hot spring enterprises [36]. For instance, the restructuring of tourism demand has a profound impact on the development model of hot spring villages. The process of restructuring tourism demand has changed the way hot spring water is used and its output effect, making the use of hot spring water an important criterion for judging whether hot spring areas have entered a mature period [37]. The restructuring of tourism demand has also led to the emergence of a large amount of hot spring tourism destinations, and the key to their success or failure is mainly determined by the level of regional economic development, policy environment, market demand, talents, transportation conditions and product characteristics [38,39]. Therefore, it can be seen that the development of hot spring resources plays an important role in the transformation of rural industries. Enterprises are the main body of hot spring resource development, and have a strong, direct, and far-reaching impact on rural economic development, which can positively reflect the sustainable development status and future of the hot spring village industry.
Fujian Province, located in the southeast of China, has abundant geothermal resources and nearly 200 hot spring spots, ranking fifth in China. Most of the hot spring resources are distributed in rural areas. This study selects typical hot spring villages in Fujian Province as the research object and constructs an evaluation index system for rural industry development by hot-spring-enterprise-related data. The construction of industry development indexes has been widely applied in previous studies, such as the development of rural hot spring resources [40] and the transformation of traditional village industries [41]. The purpose of this study is to explore the process and models of hot spring industry transformation, and reveals the influencing mechanisms that lead to the transformation. Empirical research of 19 typical hot spring villages in Fujian Province is conducted to provide decision-making references for the sustainable development of rural hot spring industry transformation and rural revitalization in coastal areas.
The structure of this study is organized as follows. The Section 1 provides an introduction, mainly including the proposal of research questions and the literature review, and a brief introduction of the results and contributions of this study. The Section 2 describes the methods and data sources used in this study. The Section 3 presents the results obtained by using the methods described in the second section. The Section 4 summarizes the conclusions of this study and provides some discussions. Finally, the Section 5 discusses research limitations, future research directions, and implications.

2. Materials and Methods

2.1. Study Site

Fujian Province is located in the southeast coastal region of China. As a coastal province, Fujian has abundant geothermal resources. There are more than 200 hot springs with water temperatures above 20 °C and special chemical components, ranking fifth in China in terms of the number. The brand of “Fujian style hot spring tourism” enjoys huge popularity. The hot spring spots in Fujian Province are mostly distributed in rural areas [36]. Lin et al. [40] have measured the hot spring development index of 173 hot spring villages in Fujian Province. This article uses the natural breakpoint classification method to classify hot spring villages based on the hot spring rural hot spring development index mentioned in Lin et al.’s [40] study. Among them, there are 19 hot spring villages with high development indexes. Hot spring resources are fully developed in these 19 villages and the industries are well-developed, which can represent the development model of the rural hot spring industry (Figure 1).

2.2. Construction of Industrial Development Index

2.2.1. The Evaluation Index Indicators

The hot spring village industry development index [42] was constructed from five indicators: establishment date, registration status, enterprise type, number of enterprises, and registered capital (Table 1), with the establishment date reflecting the process, the registration status reflecting the status, the type of enterprise reflecting the models, the number of enterprises reflecting the scale, and the registered capital reflecting the strength of industrial transformation and development [43]. The attribute of each indicator was mostly positive feedback. Each evaluation indicator was standardized to solve the problems of differences in dimensions and the physical significance of evaluation indicators and incomparable parameters. In terms of enterprise type, a joint venture was more likely to generate technology diffusion than sole proprietorship. In terms of enterprise brands, enterprises with an earlier date of establishment and registered as existing or in normal status often have a long-term brand accumulation [42]. Therefore, rural hot spring enterprises which are joint ventures with large registered capital and an earlier date of establishment, in existing or normal operation status, are more likely to reflect the better development of rural hot spring resources.

2.2.2. Standardization of Evaluation Indicators

The establishment date, registration status, enterprise type, number of enterprises and registered capital were evaluated using a hierarchical valuation method. The natural breakpoint classification method was adopted to standardize the establishment date, registered capital, and number of enterprises in five levels, assigning values of 10, 8, 6, 4 and 2, respectively. The registration status and enterprise type were directly graded and assigned a value according to the development of the enterprise [44]. The sole proprietorship enterprise, whose hot spring village industry development capacity is weaker than that of a joint venture, but stronger than that of individual ownership and other types, was valued as 6. The enterprise in revocation and cancellation statuses, whose hot spring village industry development capacity is weaker than that of the existing and in operation status, but stronger than that of moving out, was valued as 6, as shown in Table 2.
The determination of indicator weight was performed as follows. The entropy weight TOPSIS method was used to determine the weights of the five evaluation indicators: establishment date, registration status, enterprise type, number of enterprises, and registered capital, which are 0.2501, 0.2366, 0.1898, 0.0866, and 0.2369, respectively.
The industrial development index was developed as follows. Based on the hot spring village industrial development evaluation indexes, a development index (DI) was constructed to evaluate the level of hot spring village industrial development. The formula is as follows:
D I n = 0.2501 C n + 0.2366 D n + 0.1898 Q n + 0.0866 S n + 0.2369 Z n
where: DIn is the hot spring development index of village n; Cn, Dn, Qn, Sn, Zn are the values of the indicators of establishment date, registration status, enterprise type, number of enterprises, and registered capital of the rural hot spring enterprises in village n.

2.3. Research Methods

2.3.1. Data Analysis

1. Entropy weight TOPSIS
The entropy weight TOPSIS method was used to determine the weight of the secondary index. The distance C between the evaluation object and the ideal solution was taken as the evaluation criterion. The closer C is to 1, the better it is, and the closer it is to 0, the worse it is. The TOPSIS model is a distance comprehensive evaluation method, which is also known as a “ranking method for approximating ideal solutions”. The entropy weight TOPSIS model is an improvement on the TOPSIS model. First, the entropy weight method is used to determine the weight of evaluation indicators and objectively evaluate the importance of indicators. Then, the TOPSIS model is used to rank decision-making objectives, and judge and measure the advantages and disadvantages of evaluation objects. This method has the advantages of operability and objectivity with little demand for samples, and the results are reasonable [45].
2. Cluster analysis
The changes in regional industrial structures not only reflect the economic development level of hot spring villages, but also point out the direction for its industrial transformation and development [46]. Cluster analysis was used to determine the dominant type of industry in Fujian’s hot spring villages. Firstly, a unified K-value cluster analysis was performed to analyze the data on the industrial structure indexes of the hot spring villages in different years. Secondly, based on the characteristics of the proportions of the industrial structures of the hot spring villages, the traditional hot spring village industries in Fujian Province were divided into three categories, the agriculture dominant, industry dominant and service industry dominant.

2.3.2. GIS Spatial Analysis

ArcGIS software was used to build a database of rural hot spring enterprises, including information such as the enterprise name, registration status, registered capital, establishment time, location, enterprise type, business scope and industry sector. At the same time, the GIS spatial analysis method was used to visualize hot spring villages with different industrial development levels in space. Based on ArcGIS 10.2 software, the spatial distribution map of the industrial development indexes of 19 typical hot spring villages was produced.

2.3.3. Field Investigation

The authors conducted field investigations and interviews from March to April 2023 in typical hot spring villages. Hot spring enterprises engaged in hot spring aquaculture, hot spring processing, and hot spring services were chosen. Semi-structured interviews were conducted, including 5 enterprise managers, 5 local villagers, and 3 village government staff. The interview questions were mainly related to the time engaged in hot spring industry, the process of and willingness to participate in industry transformation, and the influencing factors. These interviews lasted between 15 min and 2.5 h. All were recorded with respondents’ permissions and later transcribed.

2.4. Data Sources

The data in this study were derived as follows. Researchers first searched platforms such as Qcc.com, TianYanCha.com and the Fujian enterprise credit information publicity system to find all enterprises registered in these 19 typical hot spring villages, obtaining a total number of 6635 enterprises. At the same time, researchers also searched for information about the date of establishment, registration status, enterprise type, and registered capital of the enterprises and cleansed the data to form a typical hot spring rural industry database of Fujian Province.

3. Results

3.1. Characteristics of Industrial Transformation in Hot Spring Villages

3.1.1. Characteristics of Enterprise Types

The scale of enterprises in hot spring villages showed a polarization trend, and the scale of enterprises were mainly small and medium-sized (Table 3). Different types of enterprises showed different characteristics. Firstly, the individual ownership enterprises showed the characteristics of being large in number but small in scale. There were 5112 individual merchants in hot spring villages, accounting for 77.06% of the number of enterprises, with a total registered capital of CNY 3470.1153 million, accounting for only 14.40% of the amount of capital. Secondly, the sole proprietorship enterprises showed the characteristics of being small number but large in scale. There were only 627 sole proprietorships in hot spring villages, accounting for 9.45% of the total number, with a total registered capital of CNY 10,388.9823 million, accounting for 43.10% of the total capital. Thirdly, the joint venture enterprises and cooperatives showed the characteristics of being small number but large in scale. There were only 895 joint ventures, accounting for 13.49% of the total number, with a total registered capital of CNY 10,245.475 million, accounting for 42.50% of the total capital. The emergence of this phenomenon is closely related to the transformation and development of the hot spring village industry. On the one hand, the hot spring village itself has low social demand and investment ability, whereas individual merchants have advantages such as simple registration processes and low tax revenue, which are suitable for the early development of enterprises in the hot spring village. On the other hand, during the rapid development stage of hot spring villages, influenced by the improvement of the economic level, enterprises with sole proprietorships or joint ventures have been established to participate in the transformation and development of rural industries. Therefore, the characteristics of the types of enterprises in hot spring villages are closely related to its stage of industrial transformation and development.

3.1.2. Characteristics of Industrial Development Index Evolution

From a time series perspective, the industrial development indexes of typical hot spring villages in Fujian Province show an upward curve trend from 1990 to 2021, including a preliminary development stage (1990–2000) and a rapid development stage (2001–2021) (Figure 2). From the perspectives of different industries, the development indexes of the primary and secondary industries in hot spring villages are not high, with relatively slow growth. This indicates that although hot spring villages have utilized their hot spring resources to carry out activities such as aquaculture and processing, the economic benefits are not high, and there is an urgent need to inject new growth momentum through industrial transformation. In 2006, the National Tourism Administration designated China’s tourism theme as “Rural Tourism in China” and issued the “Guiding Opinions on Promoting Rural Tourism Development”. In the same year, rural tourism was included in the “Eleventh Five Year Plan” by the State Council, and the rural tertiary industry developed rapidly. At the same time, the development index of the tertiary industries in hot spring villages rose rapidly after 2006, with a growth rate that was once ahead of the primary and secondary industries, reaching its peak between 2020 and 2021. Overall, the industrial development indexes of typical hot spring villages in Fujian Province show an increasing trend year by year, and the industrial structure showed a process of transformation from traditional agriculture to manufacturing, and then to the service industry.

3.1.3. Spatial Characteristics of Industrial Development Index

In terms of spatial layout, as shown in Figure 3, the overall industrial development index of typical hot spring villages in Fujian Province can be divided into four categories: high, moderately high, medium, and low industrial development, accounting for 5.26%, 31.58%, 47.37% and 15.79%, respectively. Hot spring villages with high overall industrial development indexes are mainly distributed in Xinquan Village (in Liancheng County of Longcheng City), Tangtou Village (in Longhai District of Zhangzhou City), and Gui’an Village (in Lianjiang County of Fuzhou City), while those with low overall industrial development indexes are mainly distributed in Shangtang Village (in Nanjing County of Zhangzhou City), Tangxia Village (in Minqing County of Fuzhou City), and Tangyuan Village (in Minhou County of Fuzhou City). The overall industrial indexes of hot spring villages are not only related to the number of enterprises in the village, but are also closely related to the type of industries in the village. The hot spring villages with high overall industrial development indexes also have high development indexes for their primary, secondary and tertiary industries, which are a variety of industrial types; development was mainly focused in the tertiary industry and also influenced a certain layout of the primary and secondary industries. Those villages with low overall industrial development indexes also have low development indexes for their primary, secondary and tertiary industry, and their industries have not been fully developed.

3.1.4. Characteristics of Industrial Transformation Stage

Cluster analysis was used to divide the 19 typical hot spring villages into three types: agriculture dominant, industry dominant and service industry dominant. The dominant industry types in each stage are shown in Figure 4. From 1990 to 2000, the industrial transformation of hot spring villages was in the initial development stage, with 5.26% of hot spring villages without leading industries. The number of agriculture-dominant, industry-dominant and service-industry-dominant hot spring villages accounted for 15.79%, 26.32% and 52.63%, respectively. Some hot spring villages had a certain industrial foundation, and most of them have transformed from agriculture-dominant and industry-dominant to service-industry-dominant villages. However, at the time of writing, the enterprises in service-industry-dominant hot spring villages were mainly focusing on the residential service industry. From 2001 to 2021, hot spring villages without leading industries had disappeared completely, and agriculture-dominant and industry-dominant villages transformed into service-industry-dominant villages. It can be seen that with socio-economic development, the industrial structure of hot spring villages is gradually transitioning from the primary industry dominated by aquaculture to the secondary and tertiary industries. However, the process of industrial transformation in each village is not the same. There are also cases where some hot spring villages have directly transitioned from no dominant or agriculture dominant to service industry dominant.

3.2. Industrial Transformation Models of Hot Spring Villages

The industries of hot spring villages in Fujian Province have undergone three industrial transformation models, hot spring aquaculture, hot spring processing and hot spring services.

3.2.1. Hot Spring Aquaculture

Hot springs are rich in minerals and trace elements, which provide a natural living environment for those aquatic products that have strict requirements for water quality and temperature. Due to their advantages, such as low investment and easy mining, they have generated great economic benefits in aquaculture. At the initial stage of development, hot spring villages in Fujian Province only focused on aquaculture activities, with the main aquatic products including eel, freshwater fish, tropical fish, turtle, bullfrog, etc. With the improvement of the economic benefits of hot spring aquaculture, hot spring villages have gradually established a certain scale of aquaculture and aquaculture technology development companies, such as Fuxin Eel Farm in Gui’an Village, Lishui Bullfrog Breeding Farmers’ Professional Cooperative in Jiaoxi Village, Fenglai Turtle Farm in Hot Spring Village, and Aquatic Technology Development Co., Ltd. in Gunong Village. The scale of hot spring aquaculture has been continuously expanded due to the specialization of aquaculture, promotion of new varieties, and provision of new technology training and consulting services, forming an industrial chain of “aquatic product aquaculture—aquatic product retail—aquatic product wholesale—aquaculture technology promotion and information services”, as shown in Table 4. This is a transformation from ordinary aquaculture agriculture to a productive service industry, reflecting the integration process from primary agriculture to tertiary industries.

3.2.2. Hot Spring Processing

Hot spring processing refers to the development, utilization and investment of hot spring geothermal resources, mainly including the comprehensive development of hot spring agriculture and geothermal exploitation and utilization. With the expansion of the scope of hot spring aquaculture, the role of hot springs in agricultural production is becoming increasingly prominent. Hot springs have been widely utilized in fish cultivation, the irrigation of geothermal agricultural products, and the development of hot spring forestry. Various hot spring utilization models have gradually emerged, including “hot spring fish appreciation- comprehensive development of hot spring agriculture—hot spring forest households”, reflecting the primary processing of hot spring resources, as shown in Table 5.
The continuous increase in the use of hot springs has made the exploitation of hot spring geothermal resources a market demand. Fuzhou Rongqiaowen Mineral Spring Development Co., Ltd. and Gui’an Hot Spring Tourism Development and Construction Co., Ltd. in Lianjiang County have successively conducted geothermal exploration and exploitation in Shuanglong Village and Gui’an Village in Fuzhou City by using well-drilling technologies. After years of development, the hot spring geothermal utilization industry has gradually matured, generating services such as the installation and maintenance of hot spring pipelines, geothermal management, and sales of thermal mineral spring technology consulting. This is an effective exploration of the development and utilization of hot spring resources, which has greatly promoted the transformation of hot spring resources in Fujian Province into service industries such as hot spring bathing, and has laid a solid foundation for the emergence of the hot spring service industry.

3.2.3. Hot Spring Services

1. Hot spring bathing
With the improvement of people’s living standards, hot spring bathing has become an important leisure and health activity. As the core product of hot spring development, hot spring bathing in Fujian Province first appeared in the hot spring village of Yongtai County in 1993. Initially, it mainly provided simple hot spring physical therapy and accommodation services, and it was not until 2010 that hot spring bathing in the whole province achieved rapid development, as shown in Table 6. From the data of hot spring enterprises, it can be seen that hot spring bathing places in Fujian Province have undergone a transformation to “hot spring bathhouses, hot spring baths, hot spring health clubs, hot spring villas, and hot spring leisure centers”. The form of bathing has also shifted from a single wooden bucket bath to hot spring bathing services (such as hot spring spas, saunas, massage, fitness, therapy, etc.), and then to indoor entertainment, catering facilities, physical therapy management and consulting, and other hot spring health activities. The hot spring bathing in Fujian Province has experienced a development trend from low level to high level, and from single to comprehensive development. Hot spring bathing products have become an important economic source for villages with hot springs as the leading industry, prompting rural hot spring resources to enter a refined development stage dominated by the tertiary industries.
2. Hot spring resorts
A hot spring resort is a comprehensive place that integrates various functions such as hot spring bathing, accommodation, catering, meetings, fitness, entertainment, etc. The construction of a hot spring resort was initially explored by Fujian Guilong Real Estate Development Co., Ltd. in Gui’an Village, Fuzhou City, concentrating on the development of hot spring tourism projects, including investment in and construction of entertainment and catering, vacation and sightseeing, ecological agriculture, and water sports projects. By the end of 2021, 41 enterprises had invested in the construction of hot spring resorts in Fujian Province, and the construction scope of hot spring resorts has been greatly expanded, involving cities such as Fuzhou, Quanzhou, and Zhangzhou, etc. Various development models have emerged at this stage, such as “hot spring and scenic area”, “hot spring and amusement park”, “hot spring and conference”, “hot spring and farmhouse entertainment”, and “hot spring and healthcare”, which have greatly increased the added value of hot spring resource development and extended the hot spring industry chain. The construction of hot spring resorts not only develops and utilizes hot spring resources, but also satisfies the physical and psychological needs of people. It is an important component of the life service industry.
3. Hot spring tourism real estate
Hot spring tourism real estate often accompanies the construction of hot spring resorts and hot spring scenic spots. The unique health care and tourism leisure value of hot springs have made hot spring tourism real estate very competitive in the real estate market. Therefore, the development model of “hot spring and tourism real estate” is constantly emerging around hot spring resorts and hot spring scenic spots. The hot spring tourism real estate industry combines three industries, hot springs, tourism and real estate, covering a wide range of economic areas, and has become an important model of overall regional development. The construction of hot spring tourism real estate in Fujian Province mainly includes the development and operation of hot spring resources, the development of tourist attractions, hot spring resorts and their supporting services. For example, the Gui’an Xintiandi Complex, located in the Gui’an Hot Spring Tourist Spring Resort, is a case of hot spring tourism real estate development. Through the construction of hot spring hotels, entertainment parks, schools, residential areas, villas, etc., it has built into hot spring tourism real estate, along with the functions of tourism, sightseeing, sports, entertainment, business, conferences, health care, vacations, residence, etc., attracting tourists to settle there and improving the quality of life.
In summary, after more than 30 years of development, the industries of hot spring villages in Fujian Province have undergone an industrial transformation model of “hot spring aquaculture, hot spring processing and hot spring services”, which reflects a transformation process from the primary industry to the secondary and the tertiary industries, evolving from extensive to refined, and from aquaculture processing to hot spring services. At the same time, this transformation is also an extension of the production service industry’s trend towards specialization and high-end services, and a transformation of the living service industry towards convenience and high-quality services. The industrial transformation model of hot spring villages in Fujian Province meets the requirements of economic and social development. In the future, under the premise of sustainable development, the utilization efficiency of rural hot spring resources will be improved and promote a composite development path that integrates the hot spring industry with other industries.

3.3. Influencing Factors of the Industrial Transformation Model of Hot Spring Villages

Through on-site investigations of and interviews conducted in 19 hot spring villages, based on the push and pull theory, the influencing factors of the industrial transformation model of hot spring villages in Fujian Province were summarized, mainly including location, policy, market, farmers, resources, etc. It is a comprehensive process based on location conditions, driven by the demand of the rural hot spring tourism market, government funding policy support and the choices of local villagers, as shown in Figure 5.
Since the industrial transformation of hot spring villages is influenced by location factors, market factors, choices of local villagers, and policy factors, the following part analyzes these factors that influence the model of industry transformation.

3.3.1. Location Factors

Location factors are the foundation for the transformation and development of the hot spring industry in rural areas. Superior geographical conditions, abundant hot spring resources, and convenient transportation have significant impacts on the transformation of the rural hot spring industry. Fujian Province is located on the southeast coast of China, with abundant geothermal resources, especially in the coastal areas of Fuzhou, Quanzhou and Zhangzhou. The abundant geothermal resources have laid a solid foundation for the development of hot spring resources. At the same time, rural areas that are close to their county centers and have convenient external transportation are easily influenced by the radiations of their cities, and are more likely to receive funds, technology and talents from the urban area, thereby accelerating the transformation of the rural hot spring industry. In addition, the spillover effect of rural hot spring resource development in Fujian Province is obvious. Strong links among different regions are conducive to the diffusion of the industrial transformation model of hot spring villages and promoting their continuous evolution.

3.3.2. Market Factors

The growth of the tourist market in hot spring villages is another driving factor for industrial transformation and development. Driven by the upgrading of consumer needs and pursuit of a high-quality life, the health and wellness vacation model represented by hot spring tourism is increasingly popular among tourists. In this context, the hot spring villages in Fujian Province actively explore hot spring tourism products, transitioning from hot spring aquaculture to hot spring food therapy, from hot spring bathing to massage therapy, and establish comprehensive hot spring resorts to meet the needs of hot spring tourism in all aspects. The diversification and personalization of hot spring products have greatly promoted the evolution of the industrial transformation model of hot spring villages in Fujian Province. In addition, Fujian is closely connected to Taiwan and has obvious advantages in attracting Taiwanese tourists and learning from the development of Taiwan’s hot spring industry.

3.3.3. Choices of Local Villagers

Local villagers’ choices about the utilization of hot spring resources at each stage also have had a crucial impact on the transformation and development of the rural hot spring industry. In the early stage of hot spring development, farmers used hot spring groundwater to breed various fish, turtles, bullfrogs, etc., earning a certain amount of income. With the intervention of enterprises, traditional hot spring aquaculture was formed. After a preliminary exploration of hot spring aquaculture, the use of hot spring resources was not limited to aquaculture, but extended to the combination of hot spring resources with agriculture and forestry. Professional geothermal resource extraction companies were also established to join in the primary processing of hot springs. In the stage of hot spring service, farmers, as the main labor force for rural hot spring bathing and tourism reception, operated or joined in the hot spring service industry, promoting the development of the rural hot spring service industry, and achieving the transformation of the rural hot spring industry.

3.3.4. Policy Factors

The relevant policies and financial support of hot spring villages are important factors for industrial transformation and development. In the early stages of hot spring development, the government did not intervene in the hot spring industry, and the hot spring industry was in a state of arbitrary development. With the expansion of the hot spring market, national and local governments introduced a series of policies to promote the development of the hot spring industry, such as the “Opinions on Promoting the Development of the Hot Spring Industry” and the “Fujian Hot Spring Tourism Development Plan (2011–2020)”, which stipulated the direction of hot spring industry development and carried out unified basic management. At the same time, government financial support has played an important role in introducing hot spring technical talents and improving rural infrastructure. In addition, the government’s investment promotion policy has introduced new hot spring tourism business entities who have greatly improved the industrial service functions of hot spring villages and promoted the transformation of hot springs into a service industry.

4. Conclusions and Discussions

Based on the theory of rural industrial transformation, this study used enterprise attribute data to construct an index system for the industrial development of hot spring villages. Nineteen typical hot spring villages in Fujian Province were selected as research objects to reveal the industrial transformation models and their influencing factors. The main conclusions are as follows:
(1) The transformation of the hot spring village industry mainly includes two stages, the initial development and the rapid development stage. The leading industry of the hot spring village presents a progressive feature, and has transformed into service industry dominant. From 1990 to 2021, the industrial development index of typical hot spring villages in Fujian Province showed a curve with an upward trend. The number and scale of enterprises in each stage grew continuously, the leading industries of hot spring villages showed a progressive trend and all transformed into service-oriented enterprises. In the initial development stage, 5.26% of hot spring villages were without leading industries, and the number of agriculture-dominant, industry-dominant and service-industry-dominant hot spring villages accounted for 15.79%, 26.32% and 52.63%, respectively. In the rapid development stage, hot spring villages without leading industries’ enterprises disappeared completely, and agriculture-dominant and industry-dominant villages transformed into service-industry-dominant villages.
(2) The industrial transformation of hot spring villages has presented a gradual transformation model from hot spring aquaculture to hot spring processing and hot spring services. The industrial transformation model of hot spring villages in Fujian Province mainly includes three forms: hot spring aquaculture, hot spring processing, and hot spring services. Hot spring aquaculture has transformed into a productive service industry through services such as the wholesale of aquatic products and technology promotion. Hot spring processing has transformed into a life service industry through the comprehensive development of hot spring agriculture and geothermal technology mining. Hot spring services have been transitioning towards refinement through development models such as bathing, resorts and tourism real estate. This reflects the transformation process of the hot spring village industry in Fujian Province from the primary industry to the secondary and tertiary industries, as well as the extension of the productive service industry to specialized and high-end services, and the transformation process of the living service industry to convenient and high-quality services.
(3) The industrial transformation model of hot spring villages in Fujian Province is the result of the interaction of factors such as location, policy, market, farmers and resources. The industrial transformation model of hot spring villages is based on location conditions and is driven by the demand of the rural hot spring tourism market, government policy funding support and the choices of local villagers. Superior location conditions are the prerequisite and foundation for the transformation and development of the hot spring village. The growth of the rural hot spring tourism market is its external driving force, and the behavior and choices of local villagers also have a significant impact. Policies provide the strongest support and guarantee for the transformation and development of the hot spring village.
With the implementation of the rural revitalization strategy and the concept of sustainable development, the rural industrial structure continues to be adjusted and optimized. This study provides deep insights into the effective and sustainable utilization of hot spring resources and the transformation and upgrading of the rural hot spring industry. First, from the perspective of sustainable development, this study quantifies the level of industry development of hot spring villages by constructing an industrial development index, summarizes the models of industrial transformation and explores the influencing factors that lead to the transformation. Consistent with previous studies [41,46], this study finds that the development level of hot spring villages in Fujian Province presents a progressive feature, gradually transitioning from an agriculture-dominant model to a service-industry-dominant model. Second, previous research on the transformation model of the hot spring industry’s transformation mostly focused on the large spatial scale, and the transformation model mainly focused on extensive models like agricultural irrigation and aquaculture, or refined models such as hot spring health care and hot spring tourism [11,31]. Different from previous large-scale research areas, this study selects hot spring villages in Fujian Province as a research area, which allows researchers to summarize the evolution process of the hot spring industry’s transformation at each stage more accurately and provides decision-making references for the sustainable development of rural areas.

5. Limitations and Future Directions

With the transformation and development of rural areas, the development of rural hot spring resources has shifted from an extensive model of the simple utilization of water resources to a refined model of a hot spring health industry and the integration of the hot spring and cultural tourism industries, thereby optimizing the rural industrial structure and increasing farmers’ incomes. This study explores the industrial transformation model and influencing mechanisms of hot spring villages in Fujian Province through the data of hot spring village enterprises attributes. However, due to factors such as incomplete long-term statistical data in rural areas and difficulty in obtaining data through field investigations, empirical research on multiple cases have not been conducted. It has the following limitations.
First, due to incomplete long-term statistical data in rural areas, information about the enterprises’ number of employees, location, operating income, and number of supporting facilities was incomplete. The authors could only obtain the date of establishment, registration status, enterprise type, and registered capital of the enterprises through platforms such as Qcc.com, TianYanCha.com and the Fujian enterprise credit information publicity system. Although these enterprise data can reflect the development level of local hot spring resources, they are not comprehensive enough. Future research can add indicators, such as the number of employees, location, operating income and number of supporting facilities to reflect the development status of the hot spring industry more accurately and thoroughly.
Second, this study analyzes the factors that influence the model of industrial transformation, but does not further explore their mechanisms, making it difficult to reflect the direct and indirect effects of these factors. In the future, a large number of on-site visits and research can be conducted to obtain data on the development status of hot spring resources, the number of tourists in hot spring areas, the labor force of hot spring enterprises, and the investment in infrastructure construction, in order to further explore the mechanisms of factors affecting the transformation model, and more case studies will be used to verify the mechanisms. Future study is expected to provide decision-making references for the balanced development of rural hot spring industries, thereby promoting sustainable development in hot spring villages.
As China has transformed from an agrarian economy to an industrial economy at a tremendously fast pace [47], Chinese rural areas have experienced phenomena such as the “hollowing out” and “aging” of the rural population, leading to a shortage of rural labor, which has restricted the development of rural hot spring resources. Therefore, the large-scale development of rural hot springs relies on capital from outside the rural areas, which often leads to the problem of disharmony between the large-scale development of hot spring resources and local small-scale enterprises. The long-term impact of COVID-19 has made the financial markets volatile and the rate of business failure and unemployment high [48]. How to realize the sustainable development of hot spring resources and the common prosperity of rural residents in the process of rapid industrial transformation should be the focus of research in the next stage.

Author Contributions

Conceptualization, L.L.; Methodology, Y.C., W.L. and M.L.; Investigation, L.L., Y.C., W.L. and Y.Z.; Writing—original draft, L.L., Y.C. and W.L.; Writing—review and editing, Y.Z. and M.L.; Funding acquisition, M.L. All authors have read and agreed to the published version of the manuscript.

Funding

This research was funded by the project of National Natural Science Foundation of China (grant No. 42271254), Major Projects of the National Social Science Foundation (21&ZD179).

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Informed consent was obtained from all subjects involved in the study.

Data Availability Statement

The data presented in this study are available on request from the corresponding author.

Acknowledgments

The authors would like to thank the anonymous reviewers and editors for their helpful suggestions for the improvement of this paper.

Conflicts of Interest

The authors declare no conflict of interest.

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Figure 1. Distribution of the 19 typical hot spring villages.
Figure 1. Distribution of the 19 typical hot spring villages.
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Figure 2. Industry index curve chart of typical hot spring villages.
Figure 2. Industry index curve chart of typical hot spring villages.
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Figure 3. Spatial distribution of the industrial development indexes of hot spring villages. (a) The overall industrial development index of hot spring villages; (b) the industrial development index for primary industry; (c) the industrial development index for secondary industry; (d) the industrial development index for tertiary industry.
Figure 3. Spatial distribution of the industrial development indexes of hot spring villages. (a) The overall industrial development index of hot spring villages; (b) the industrial development index for primary industry; (c) the industrial development index for secondary industry; (d) the industrial development index for tertiary industry.
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Figure 4. The process of industry transformation in hot spring villages. (a) Industry types in initial development stage of hot spring villages (in 1990–2000); (b) Industry types in fast development stage of hot spring villages (in 2001–2021).
Figure 4. The process of industry transformation in hot spring villages. (a) Industry types in initial development stage of hot spring villages (in 1990–2000); (b) Industry types in fast development stage of hot spring villages (in 2001–2021).
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Figure 5. The influence mechanisms of the industrial transformation model in hot spring villages.
Figure 5. The influence mechanisms of the industrial transformation model in hot spring villages.
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Table
Table 1. Hot spring village industry development index.
Table 1. Hot spring village industry development index.
IndicatorDescriptionAttribute
Establishment date The date approved by the government when the enterprise was established for the first time, reflecting the process of industrial transformation and development+
Registration statusIncluding existing, in operation, revocation, cancellation, move in, move out, closure and liquidation, reflecting the state of industrial transformation and development−
Enterprise typeIncluding individual ownership, joint ventures, and sole proprietorship, reflecting the models of industrial transformation and development−
Number of enterprisesIncluding all rural enterprises, reflecting the scale of industrial transformation and development+
Registered capitalThe total amount of capital registered in the registration management agency for establishing a corporate enterprise, reflecting the strength of industrial transformation and development+
Notes: This table describes the five indicators of the hot spring village industry development index. Establishment date reflects the process of industry transformation; Registration status reflects the status of industry transformation; Enterprise type reflects the manner of industry transformation; Number of enterprises reflects the scale of industry transformation; Registered capital reflects the strength of industry transformation; “+” means positive feedback; “−” means negative feedback.
Table
Table 2. Standardization of value assignment.
Table 2. Standardization of value assignment.
IndicatorStandardized Value Assignment
246810
Establishment time2017–20222012–20162006–20111988–20051966–1999
Registration statusmoving out−revocation, cancellation−existing, in operation
Enterprise typeindividual ownership−sole proprietorship−joint ventures
Number of enterprises≤6465–227228–361362–732>732
Registered capital
(RMB 10,000)		≤26502651–16,00016,001–49,80049,801–115,800>115,800
Notes: This table shows the standardization of value assignment of the five indicators. The five indicators are standardized at five levels, with assigned values of 10, 8, 6, 4 and 2, respectively. The three types of registration status are valued as follows: the enterprise in moving out status is valued as 2, in revocation and cancellation status is valued as 6, and the existing and in operation status is valued as 10. The three types of enterprise are valued as follows: the individual ownership enterprise is valued as 2, the sole proprietorship enterprise is valued as 6 and the joint venture enterprise is valued as 10. The ‘−’ in the table is empty and does not need to be assigned a value.
Table
Table 3. Analysis of typical hot spring rural enterprise types.
Table 3. Analysis of typical hot spring rural enterprise types.
Typical Hot Spring VillagesIndividual Ownership EnterprisesSole Proprietorship EnterprisesJoint Venture Enterprises and Cooperatives
Number Registered Capital (RMB 10,000)Number Registered Capital (RMB 10,000)Number Registered Capital (RMB 10,000)
Geling Village in Yontai County33199088197,456.393485,359
Guian Village in Lianjiang County379134,198.279614,354.05110191,396
Shuanglong Village in Minhou County16111,4101112,6125559,915
Tangxia Village in Minqin County81773640,33912100,042
Tangyuan Village in MinhouCounty449708172693306
Hot spring Village inYongtai County12226652569,0601512,890
WenbaoVillage inLiancheng County14314,5122211,8993111,405
Xinquan Village in Liancheng County106018,716.5283722.157810,647.85
Hot Spring Village in Xianyou County34412,500414624439651.5
Jiaoxi Village in Dehua County1184725.51465424616,144
Jinshi Village in An’xi County1721101283636184742
Baofeng Village in Heping County25417,366.843562887214,896.1
GunongVillage in Changtai County18755663132,216467536.5
Guanpi Village in Zhangpu County3679665462466193851
Longtian Village in Longhai County24937,856.13234502.374530,860
Shangtang Village in Nanjing County45159841006157774.6
Tangkeng Village in Nanjing County34918,5104111,0495710,863.93
Tangtou Village in Longhai County59136,658496400.369236,234
Xiangya Village in Zhangpu County18816,230.36489000397032.57
Total5112347,011.536271,038,898.238951,024,547.05
Table
Table 4. Analysis of the hot spring aquaculture industry evolution.
Table 4. Analysis of the hot spring aquaculture industry evolution.
Evolution StageRegistered Time (Year)Time for Scale Development (Year)Number of Enterprises
aquatic product aquaculture19901999227
aquatic product retail19952006120
aquatic product wholesale1996201023
aquaculture technology promotion and information services2008201547
Table
Table 5. Analysis of the hot spring processing industry evolution.
Table 5. Analysis of the hot spring processing industry evolution.
Evolution StageRegistered Time (Year)Time for Scale Development (Year)Number of Enterprises
comprehensive development of hot spring agriculture199920159
the exploitation and utilization of hot spring geothermal resources200120107
Table
Table 6. Analysis of hot spring service industry evolution.
Table 6. Analysis of hot spring service industry evolution.
Evolution StageFirst Appeared Time
(Year)		Model Appeared Time
(Year)		Number of Enterprises
Hot spring bathing19932005218
Hot spring resort2000201041
Hot spring tourism real estate2000201516
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Liu, L.; Chen, Y.; Li, W.; Zeng, Y.; Lin, M. Research on Industry Transformation Models and Influencing Factors of Hot Spring Villages from the Perspective of Sustainable Development: A Case Study of Fujian, China. Sustainability 2023, 15, 9872. https://doi.org/10.3390/su15139872

AMA Style

Liu L, Chen Y, Li W, Zeng Y, Lin M. Research on Industry Transformation Models and Influencing Factors of Hot Spring Villages from the Perspective of Sustainable Development: A Case Study of Fujian, China. Sustainability. 2023; 15(13):9872. https://doi.org/10.3390/su15139872

Chicago/Turabian Style

Liu, Lihua, Yuping Chen, Wei Li, Yanfang Zeng, and Mingshui Lin. 2023. "Research on Industry Transformation Models and Influencing Factors of Hot Spring Villages from the Perspective of Sustainable Development: A Case Study of Fujian, China" Sustainability 15, no. 13: 9872. https://doi.org/10.3390/su15139872

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