Challenge or chance? Understanding the impact of anti-corruption campaign on China’s hotel industry

Yang Yang, Caiping Wang and Honggang Xu
Additional contact information
Yang Yang: Temple University, USA
Caiping Wang: 26469Sun Yat-sen University, China
Honggang Xu: 26469Sun Yat-sen University, China

Tourism Economics, 2022, vol. 28, issue 6, 1566-1588

Abstract: Anti-corruption has garnered increasing attention, especially in China, where President Xi launched an influential and far-reaching anti-corruption campaign in late 2012. A better understanding of the effects of anti-corruption efforts on the hotel sector can reveal insights into the development of the Chinese hotel industry. Based on the quarterly data on China’s hotel industry in 49 cities from quarter 2 of 2010 to quarter 4 of 2015, this study investigates how the anti-corruption campaign (measured by anti-corruption inspections and the number of corruption lawsuits) has influenced hotel industry demand in China. Hypotheses are developed from China’s unique cultural environment of guanxi combined with rent-seeking theory and the crowding-out principle. Empirical results confirm a significant and negative effect of the anti-corruption campaign on hotel lodging and food and beverage demand. Several factors, including a city’s administrative position as a provincial capital, hotel class, level of tourism dependence, and local residents’ entertainment expenditure, are found to moderate the effect of the anti-corruption campaign on hotels’ lodging demand significantly. Theoretical and practical implications are discussed in light of these findings.

Keywords: anti-corruption campaign; corruption-related consumption; lodging demand (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/13548166211001589 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:28:y:2022:i:6:p:1566-1588

DOI: 10.1177/13548166211001589

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().