Nature-based tourism is a global phenomenon, with traditional forms of use of natural areas, such as wood harvesting and agriculture, paving the way for ecotourism. However, there has been limited exploration of the role of institutions in driving this transition. Consequently, this paper sought to explore the role of institutions in producing space for tourism within National Forest Parks (NFPs) in China. To achieve this objective 68 national-level policy documents from 1949 to 2014 were collected and analyzed. Findings demonstrate a transformation in the role of NFPs, orchestrated by the state, capital and society for tourism. In particular, NFPs, as an ideological space in national development, were not only an outcome of economic, social, political, and ecological processes, but also balanced the power between the state, capital and society. Institutional changes mirrored the dynamic relationship between the state, capital and society in China. Future research should focus on the role of institutions in producing space for tourism for and within parks at the local level, especially in developing contexts.