Airport subsidies and domestic inbound tourism in China

Kong Wing Clement CHOW*, Wai Hong Kan TSUI, Hanjun WU

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

Abstract

Since 2013, the Civil Aviation Administration of China (CAAC) has subsidized small and medium-sized airports. The key objective of this study is to empirically validate the benefits and impacts of airport subsidies in facilitating domestic tourism development. This study contributes to the aviation and tourism literature and offers important insights to policymakers regarding airport subsidies and tourism promotion. The empirical results show that increases in airport subsidies increased airport passenger throughput and indirectly brought more tourists to the cities where airports are located. In addition, the airport subsidy scheme has had a stronger effect in boosting domestic tourist arrivals in inland regions compared with coastal regions. This study empirically finds that the government's airport subsidy scheme for small and medium-sized airports has been effective in supporting aviation and tourism development in ethnic minority areas, poor or remote regions with inconvenient land transportation.
Original languageEnglish
Article number103275
JournalAnnals of Tourism Research
Volume90
Early online date17 Jul 2021
DOIs
Publication statusE-pub ahead of print - 17 Jul 2021

Bibliographical note

Funding Information:
The corresponding author is grateful to the research support (DB19A6 and DB21B3) provided by Lingnan University.

Publisher Copyright:
© 2021 Elsevier Ltd

Keywords

  • Airport subsidies
  • Airport passenger movement
  • Domestic tourist arrivals
  • Small and medium-sized airports
  • Eastern coastal regions
  • Central and western regions

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