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Impact of Approved Destination Status on Chinese Travel Abroad: An Econometric Analysis

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  • Shawn Arita
  • Christopher Edmonds
  • Sumner La Croix
  • James Mak

Abstract

Since the early 1990s, China's government has negotiated Approved Destination Status (ADS) with 120 countries. The agreements allow government-approved travel agencies to market group tours and obtain visas in bulk to ADS destinations. The authors apply a fixed-effects estimation model to analyse how ADS has affected outbound tourist travel from China, using visitor arrivals data from 61 foreign destinations from 1995 to 2005. Various model specifications indicate that ADS has resulted in significant increases in arrivals from China, averaging 52% over three years. The authors also find evidence of travel diversion as more countries have received ADS.

Suggested Citation

  • Shawn Arita & Christopher Edmonds & Sumner La Croix & James Mak, 2011. "Impact of Approved Destination Status on Chinese Travel Abroad: An Econometric Analysis," Tourism Economics, , vol. 17(5), pages 983-996, October.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:5:p:983-996
    DOI: 10.5367/te.2011.0076
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 2012-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    2. Gaetano, Santeramo Fabio & Mariangela, Morelli, 2014. "Enhancing the foreign demand for agritourism," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2014(2).
    3. Lizhi Xu & Shouyang Wang & Jingjing Li & Ling Tang & Yanmin Shao, 2019. "Modelling international tourism flows to China: A panel data analysis with the gravity model," Tourism Economics, , vol. 25(7), pages 1047-1069, November.
    4. Santeramo, Fabio Gaetano & Morelli, Mariangela, 2015. "Enhancing the foreign demand for agritourism," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2014(2), pages 1-10, October.
    5. Santeramo, Fabio Gaetano & Barbieri, Carla, 2015. "On the demand for agritourism: a cursory review of methodologies and practice," MPRA Paper 68177, University Library of Munich, Germany.
    6. Donald Lien & Sucharita Ghosh & Steven Yamarik, 2014. "Does the Confucius institute impact international travel to China? A panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 46(17), pages 1985-1995, June.
    7. Shawn Arita & Sumner La Croix & James Mak, 2012. "How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad," Working Papers 201212, University of Hawaii at Manoa, Department of Economics.
    8. Seetaram, Neelu & Petit, Sylvain, 2012. "Panel data analysis in Tourism Research," MPRA Paper 75086, University Library of Munich, Germany.
    9. Shawn Arita & Sumner La Croix & James Mak, 2012. "How China's Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad," Working Papers 2012-6R, University of Hawaii Economic Research Organization, University of Hawaii at Manoa, revised Oct 2012.
    10. Stanislava Pachrová & Eva Janoušková & Jitka Ryšková, 2018. "Disparities in Tourism Demand of UNESCO Destinations," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 1040-1040, November.
    11. Boyang Xu & Daxin Dong, 2020. "Evaluating the Impact of Air Pollution on China’s Inbound Tourism: A Gravity Model Approach," Sustainability, MDPI, vol. 12(4), pages 1-21, February.

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