Evaluating the impact of high-speed rail on local tourism economy in China: A quasi-natural experiment

Abstract

In the context of the green transformation, the tourism economy, as a model of the high-quality service industry, is the key driving force for regional economic growth. The high-speed rail (HSR) has rapidly expanded in China, which has a substantial impact on the tourism economies of cities along these routes. The importance of this study is that it highlights the economic impact of HSR on tourism, and it provides a new perspective on understanding how HSR shapes regional development. This study leverages the staggered differences-in-differences (DiD) method to assess HSR’s impact on local tourism economic development by treating its introduction as a quasi-natural experiment. Panel data from 348 prefectural-level cities in China spanning the period from 2007 to 2020 were collected. The findings indicate that HSR’s introduction significantly promotes the local economic growth of tourism, with the most pronounced effects observed in western cities, which are followed by cities in the central region. However, HSR’s impact on cities in the eastern region is not statistically significant. Furthermore, HSR’s positive impact on tourism is more substantial in larger cities. To fully harness the potential of HSR in fostering local tourism economic development, cities along the routes should optimize the integration of transportation infrastructure, implement differentiated tourism strategies, and enhance regional cooperation. Tailored tourism development strategies should be advocated, catering to the distinct needs of regions and cities with varying scales. These measures are essential for improving the quality of tourism services, increasing tourism attraction, and achieving mutually beneficial development across regions.