Urbanization and tourism economic development

Yanan Tan, Guoliang Jiang, Shaheem Sayed Merajuddin and Fang Zhao

Finance Research Letters, 2025, vol. 73, issue C

Abstract: This study took China as a case study to examine the impact of urbanization efforts on tourism economic growth based on provincial panel data. We investigated factors influencing tourism economic development and the role of urbanization. Urbanization has significantly bolstered the tourism economy through mechanisms such as enhancing the transportation network, scientific and technological innovation, and public service levels. Heterogeneity analysis indicates that the effects of urbanization on the tourism economy vary across regions due to differences in tourist resources. Urbanization had a more significant positive impact on the tourism economy in regions with a richer presence of red cultural resources, world heritage sites, coastal locations, and areas where food preferences did not dominate tourist appeal. The study provides targeted recommendations for economically advanced and developing countries to support tourism economic growth. These insights can guide tourism development by aligning urbanization efforts with regional resource characteristics.

Keywords: Urbanization; Tourist economy; Transportation infrastructure; Technological innovation; Public Service Provision (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016611

DOI: 10.1016/j.frl.2024.106632

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