Attraction Agglomeration and Destination Agglomeration: The Case of Chinese National Scenic Areas

Abstract

We examine the effect of attraction and destination agglomerations on tourism revenues and tourist flows. Using data from 184 national scenic areas in China for the 2012 to 2017 period as the case study for our two-level agglomeration model, we find that the attraction agglomeration yields cooperative competition at the micro level of tourist districts. This co-existence of compatible and competitive effects determines not only individual national scenic areas’ tourism revenues and tourist flows but also the attractiveness of tourist districts where these national scenic areas are located. At the macro level of tourism destinations, we find that the destination agglomeration only yields a competitive effect, adversely affecting the tourism revenues and tourist flows of individual national scenic areas inside these tourism destinations. Our results suggest that policymakers must consider cooperative competition when managing existing tourist attractions and planning for future ones.