Abstract

<p class="Normal1">We estimate the factors of inbound tourism in China by using a panel gravity model equation of 178 origin countries from 1995 to 2012. We find the cultural dummy variables like common language, common border and religion driving the tourism flows to China. Besides, the climate variables like annual average temperature and cloud cover play a significant factors in affecting the tourist arrivals in China. An interesting result we have found that, cloud has a positive and negative relationship in country of destination and origin respectively implying that, cloudy variable in the country of origin has a negative impact on international tourist flows in China. In the contrary, cloud variable is observed positive relation in China. </p>

Highlights

  • China as the world’s largest developing country, in the context of globalization of economy, complying with the trend of development of global tourism, with increasing GDP in the country and improving people’s living standards continuously, which actively promotes the development of inbound tourism at the same time

  • The impact of factors and other determinants on inbound tourism flows explained by economic size, distance between origin and China, climate variables, bilateral trade and immigrations as well other relative variables

  • Economic size of the origin and destination countries are positively related to international tourist arrivals, the circle distance play a negative coefficient in tourism arrivals in China

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Summary

Introduction

China as the world’s largest developing country, in the context of globalization of economy, complying with the trend of development of global tourism, with increasing GDP in the country and improving people’s living standards continuously, which actively promotes the development of inbound tourism at the same time. From October 1st, 2013, “Tourism Law of People’s Republic of China” has come into effect, which stipulates rights, obligations and responsibilities of each body. As a result, this law has contributed to create a favorable legal environment for the development of tourism. Inbound tourist arrivals and tourism foreign exchange earnings are on the rise overall. China Tourism Research Team of Future predicted the Chinese tourism trends from 2011 to 2020, 20 years in total, which stated the establishment of government public service system will rapidly expand from the economically developed areas to other developing areas or even the areas in poverty, and inbound tourism will break through stagnation at the beginning of the century

Literature Review
Data and Sources
Describe of Variables
Empirical Model and Analysis
Findings
Conclusions and Policy Implications
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