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Abstract
This paper has a twofold purpose: to identify the types and impacts of unethical practices in an international travel market and to offer a generic model to enhance our understanding of the causes and consequences of such practices. The Chinese outbound market is used as a case study. The choice of China is timely and appropriate, given that the country is forecast to be one of the world's major outbound markets by 2010 with over 100 million leaving mainland China (World Tourism Organization [WTO], Citation2006). The research setting is the Chinese inbound tourism market to Australia where the Chinese market has grown substantially since Approved Destination Status (ADS) was granted in 1999. The implications of this research for European and North American tourism operators are significant, given the 2005 agreement between the European Commission and the Chinese authorities that allows group travel from China into Europe. Using the long‐interview technique with industry participants in Australia and China a conceptual framework of the environment in which unethical practices occur is provided. A model illustrating antecedents, impacts, and outcomes of unethical practices is offered. Key managerial findings include the unhealthy consolidation of channel power in the Chinese market and the influence of ethnic networks across borders. Several key issues requiring further research are highlighted.