Political tides and tourist waves: Mainland China’s policy impact on Taiwan’s tourism

Minjie Yu, Yin Ma, Yipeng Wang and Ho-Chuan Huang

Economic Analysis and Policy, 2024, vol. 83, issue C, 421-435

Abstract: This study assesses the impact of Mainland China’s open-door and closed-door tourism policies on tourist arrivals in Taiwan using the regression control method. The period from 2001 to 2019 highlights that political dynamics significantly influence tourism flows. The enactment of the open-door policy (2008–2015) coincided with a marked increase of Mainland Chinese tourists in Taiwan, averaging an annual rise of 2.19 million. In contrast, the closed-door policy (2016–2019) saw a drastic average annual reduction of 2.53 million visitors. These stark contrasts confirm the potent effect of political policies on tourism. The research underscores the potential of tourism as a diplomatic bridge, suggesting strategic importance for policymakers and industry leaders in navigating the intersection of politics and tourism.

Keywords: Taiwan; Mainland China; Open-door tourism policy; Closed-door tourism policy; Regression control method (search for similar items in EconPapers)
JEL-codes: C21 C26 D31 F35 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:83:y:2024:i:c:p:421-435

DOI: 10.1016/j.eap.2024.06.024

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