Impact of high-speed rail on tourism in China

Abstract

The “time-space compression” effect of high-speed rail (HSR) has effectively improved the accessibility of the cities and has had a profound impact on tourism. This study explores the impact of HSR on tourism development in cities along HSR lines from the perspective of transfer of transport advantages, then evaluates the impact of HSR on tourism development using panel data of 286 cities in China from 2005 to 2013 by the difference-in-differences (DID) method. The empirical results show that the opening of HSR has significantly increased the tourism revenue and tourist arrivals. These results are still holds after considering endogenous HSR lines placement, and by various robustness checks. Further analysis of nodal effect shows that node cities experienced greater growth in tourism revenue than non-node cities. The analysis of mechanism found that tourism development in node cities relied on hotel industry, while tourism development in non-node cities relied on scenic spots industry. The findings of this study validate the role of HSR as a catalyst for urban tourism development, and reveal the comparative advantages of tourism in different cities under the influence of HSR. This study has important reference value for the development of tourism industry policies in cities along and around HSR lines.