The impact of international air routes on tourism

Abstract

We analysed the impact of the number of air routes on international tourism arrivals, using a dynamic panel data model to control for endogeneity. The analysis considers China's tourist arrivals before COVID-19, from its seventeen main source countries. The results show a significant positive effect of international air routes on arrivals. Beyond the overall effect, we differentiate long-haul and short-haul routes, and incorporate potential non-linearities. The conclusion is that air routes have a positive decreasing effect on inbound tourism demand from long-haul markets, but they are not significant for short-haul markets. Given the current post-pandemic challenges, understanding the effect of air routes on tourism demand might be incorporated into destination management strategies.