Air quality effect on the hotel industry

Liang-Ju Wang, Ming-Hsiang Chen and Lu Lu
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Liang-Ju Wang: 12531Anhui University of Finance and Economics, China
Ming-Hsiang Chen: 33912Washington State University, USA
Lu Lu: 47838Beijing Sport University, China

Tourism Economics, 2022, vol. 28, issue 4, 942-950

Abstract: This article makes an original contribution to the hospitality research literature. It proposes a curvilinear impact of air quality (AQ) on hotel sales (HS) and then empirically tests this nonlinear effect using data from 26 major tourist cities in China from 2002 to 2016. The results of dynamic panel regression test based on estimations of the system generalized method of moments reveal an inverse U-shaped impact of AQ (measured by concentrations of the fine particulate matter, i.e. PM 2.5 ) on HS and thus validate the proposal. Empirical findings offer valuable policy implications for hotel business owners and tourism authorities and policymakers.

Keywords: air quality; dynamic panel model; hotel sales; system generalized method of moments (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:28:y:2022:i:4:p:942-950

DOI: 10.1177/1354816620970747

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