Spatial spillover of transport improvement on tourism growth

Abstract

Transport infrastructure plays an important role in moving tourists to and between destinations. In this study, we investigate the spatial spillover effects of transport improvements on regional tourism growth. Using panel data from 337 Chinese prefecture-level regions from 2007 to 2016, we estimate a spatial Durbin model to understand whether enhancements in road, air, railway, and high-speed rail transport stimulated tourism growth in nearby regions. Our empirical models confirm transport spillover. High-speed rail services generated spillover to nearby regions’ domestic and inbound tourism growth. For domestic tourism, road transport and air transport yielded significant spillover, while only air transport generated significant spillover in tourism revenue from inbound tourism. Findings also highlight the limited geographic scope of high-speed rail spillover and the broader scope of air transport spillover. Lastly, relevant implications are discussed.