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

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Author Info

  • Shawn Arita

    (Department of Economics, University of Hawaii at Manoa)

  • Christopher Edmonds

    ()
    (Center on the Family, University of Hawaii at Manoa)

  • Sumner La Croix

    (Department of Economics, University of Hawaii at Manoa)

  • James Mak

    (Department of Economics, University of Hawaii at Manoa)

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. We apply a gravity model framework to analyze how ADS has affected Chinese outbound tourist travel from China using Chinese visitor arrivals data from 61 main foreign destinations of mainland Chinese tourists (which account for vast majority of international departures from China) from 1995 to 2005. Fixed effects estimates indicate ADS resulted in significant increases in arrivals from China (averaging 52 percent over three years). We also find evidence of travel diversion as more countries received ADS.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-18.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200918.

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Length: 34 pages
Date of creation: 10 Nov 2009
Date of revision:
Handle: RePEc:hai:wpaper:200918

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Keywords: China Outbound Travel; Approved Destination Status; Gravity Model; Tourism; International Agreements; Travel Liberalization;

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  1. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
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Cited by:
  1. Shawn Arita & Sumner La Croix & James Mak, 2012. "How China's Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad," Working Papers 201215, University of Hawaii at Manoa, Department of Economics.
  2. Shawn Arita & Sumner La Croix & James Mak, 2012. "How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad," Working Papers 2012-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
  3. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 2012-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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