The impact of high-speed trains on regional tourism economies

Abstract

This article uses city-level panel data and difference-in-differences (DID) models to evaluate how China Railway High-speed (CRH) train accessibility impacts regional tourism economies in China. On average, CRH accessibility positively affects regional tourism economies, reflected in a 12% net increase in tourism revenue for a region. By dividing the database into different subsets, this study demonstrates that the significantly positive impacts only occur for regions where the overall level of accessibility is low. Moreover, this study reveals that among regions connected by CRH networks, the regions of which the levels of tourism development are comparatively low will experience a bigger jump in tourism economy than the regions of which the levels of tourism development are already high, and hence the dispersion effect of CRH networks is demonstrated. This study also concludes the lagged effects of CRH accessibility are much greater than its immediate effects. By virtue of these conclusions, this study suggests the ways for governments and tourism organizations to take advantage of the development of high-speed trains in China.