IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v28y2022i1p131-152.html
   My bibliography  Save this article

The impact of COVID-19 on the Chinese tourism industry

Author

Listed:
  • Can Wang
  • Xianming Meng
  • Mahinda Siriwardana
  • Tien Pham

Abstract

The COVID-19 pandemic has hit the world hard, costing more than three and half million lives. Governments around the globe are not in a consensus position on the most appropriate response to the pandemic. This study utilizes an economic model to assess choices and compare outcome of public health policies using China as a case study. A lax policy could have costed the country up to 97% of inbound tourism revenue; reduced real gross domestic product by 11% and decreased employment by 15%. Analysis shows that the appropriate prevention and control policy of the Chinese Government have mitigated the impact of COVID-19 significantly for both tourism and non-tourism sectors. Importantly, the article highlights that the substantial negative impact on investment in tourism will slow down the sector’s recovery. The article calls for strong tourism-focused response policies for a speedy recovery.

Suggested Citation

  • Can Wang & Xianming Meng & Mahinda Siriwardana & Tien Pham, 2022. "The impact of COVID-19 on the Chinese tourism industry," Tourism Economics, , vol. 28(1), pages 131-152, February.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:1:p:131-152
    DOI: 10.1177/13548166211041209
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/13548166211041209
    Download Restriction: no
    File URL: https://libkey.io/10.1177/13548166211041209?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jong-Wha Lee & Warwick J. McKibbin, 2004. "Globalization and Disease: The Case of SARS," Asian Economic Papers, MIT Press, vol. 3(1), pages 113-131.
    2. Raymond Fisman & Inessa Love, 2004. "Financial Development and Growth in the Short and Long Run," NBER Working Papers 10236, National Bureau of Economic Research, Inc.
    3. Yuli Shan & Jiamin Ou & Daoping Wang & Zhao Zeng & Shaohui Zhang & Dabo Guan & Klaus Hubacek, 2021. "Impacts of COVID-19 and fiscal stimuli on global emissions and the Paris Agreement," Nature Climate Change, Nature, vol. 11(3), pages 200-206, March.
    4. Antoine Mandel & Vipin Veetil, 2020. "The Economic Cost of COVID Lockdowns: An Out-of-Equilibrium Analysis," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 431-451, October.
    5. Warwick McKibbin & Roshen Fernando, 2021. "The Global Macroeconomic Impacts of COVID-19: Seven Scenarios," Asian Economic Papers, MIT Press, vol. 20(2), pages 1-30, Summer.
    6. Pham, Tien Duc & Dwyer, Larry & Su, Jen-Je & Ngo, Tramy, 2021. "COVID-19 impacts of inbound tourism on Australian economy," Annals of Tourism Research, Elsevier, vol. 88(C).
    7. McAleer, M.J. & Huang, B-W. & Kuo, H-I. & Chen, C-C. & Chang, C-L., 2008. "An econometric analysis of SARS and Avian flu on international tourist arrivals to Asia," Econometric Institute Research Papers EI 2008-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    8. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    9. Burniaux, Jean-March & Truong, Truong P., 2002. "Gtap-E: An Energy-Environmental Version Of The Gtap Model," Technical Papers 28705, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Sigala, Marianna, 2020. "Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research," Journal of Business Research, Elsevier, vol. 117(C), pages 312-321.
    11. Mao, Chi-Kuo & Ding, Cherng G. & Lee, Hsiu-Yu, 2010. "Post-SARS tourist arrival recovery patterns: An analysis based on a catastrophe theory," Tourism Management, Elsevier, vol. 31(6), pages 855-861.
    12. Wen Hai & Zhong Zhao & Jian Wang & Zhen-Gang Hou, 2004. "The Short-Term Impact of SARS on the Chinese Economy," Asian Economic Papers, MIT Press, vol. 3(1), pages 57-61.
    13. Angel Aguiar & Maksym Chepeliev & Erwin L. Corong & Robert McDougall & Dominique van der Mensbrugghe, 2019. "The GTAP Data Base: Version 10," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 1-27, June.
    14. Yang, Yang & Liu, Ze-Hua & Qi, Qiuyin, 2014. "Domestic tourism demand of urban and rural residents in China: Does relative income matter?," Tourism Management, Elsevier, vol. 40(C), pages 193-202.
    15. Song, Haiyan & Gartner, William C. & Tasci, Asli D.A., 2012. "Visa restrictions and their adverse economic and marketing implications – Evidence from China," Tourism Management, Elsevier, vol. 33(2), pages 397-412.
    16. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
    17. Warwick McKibbin & Alexandra Sidorenko, 2006. "Global Macroeconomic Consequences of Pandemic Influenza," CAMA Working Papers 2006-26, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    18. Xingjie Hao & Shanshan Cheng & Degang Wu & Tangchun Wu & Xihong Lin & Chaolong Wang, 2020. "Reconstruction of the full transmission dynamics of COVID-19 in Wuhan," Nature, Nature, vol. 584(7821), pages 420-424, August.
    19. Terrie Walmsley & Adam Rose & Dan Wei, 2021. "The Impacts of the Coronavirus on the Economy of the United States," Economics of Disasters and Climate Change, Springer, vol. 5(1), pages 1-52, April.
    20. Adam Blake & M. Thea Sinclair & Guntur Sugiyarto, 2003. "Quantifying the Impact of Foot and Mouth Disease on Tourism and the UK Economy," Tourism Economics, , vol. 9(4), pages 449-465, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gössling, Stefan & Humpe, Andreas, 2023. "Net-zero aviation: Time for a new business model?," Journal of Air Transport Management, Elsevier, vol. 107(C).
    2. I Gusti Ayu Manuati Dewi & Ismi Rajiani & I Gede Riana & Ni Made Dwi Puspitawati & Muafi Muafi & I Gede Rihayana, 2023. "Women’s Risk-Taking Behaviour during COVID-19 Pandemic: Will Work–Family Enrichment and Work Satisfaction Prevent Turnover Intention?," Administrative Sciences, MDPI, vol. 13(3), pages 1-12, February.
    3. Dursun Balkan & Goknur Arzu Akyuz, 2023. "Logistics Sector Turnover: Forecasting for Turkey, EU27 and EA19 under Effects of COVID-19," Logistics, MDPI, vol. 7(2), pages 1-22, April.
    4. Yingtong Chen & Fei Wu & Dayong Zhang & Qiang Ji, 2024. "Tourism in pandemic: the role of digital travel vouchers in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    5. Fangming Qin & Gezhi Chen, 2022. "Vulnerability of Tourist Cities’ Economic Systems Amid the COVID-19 Pandemic: System Characteristics and Formation Mechanisms—A Case Study of 46 Major Tourist Cities in China," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    6. Ke Shen & Jian Yang, 2022. "Residents’ Support for Tourism Amidst the COVID-19 Era: An Application of Social Amplification of Risk Framework and Knowledge, Attitudes, and Practices Theory," IJERPH, MDPI, vol. 19(6), pages 1-17, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McKibbin, Warwick & Fernando, Roshen, 2023. "The global economic impacts of the COVID-19 pandemic," Economic Modelling, Elsevier, vol. 129(C).
    2. Betarelli Junior, Admir Antonio & Faria, Weslem Rodrigues & Proque, Andressa Lemes & Perobelli, Fernando Salgueiro & de Almeida Vale, Vinicius, 2021. "COVID-19, public agglomerations and economic effects: Assessing the recovery time of passenger transport services in Brazil," Transport Policy, Elsevier, vol. 110(C), pages 254-272.
    3. Sándor Kovács & Mohammad Fazle Rabbi & Domicián Máté, 2021. "Global Food Security, Economic and Health Risk Assessment of the COVID-19 Epidemic," Mathematics, MDPI, vol. 9(19), pages 1-16, September.
    4. Pham, Tien Duc & Dwyer, Larry & Su, Jen-Je & Ngo, Tramy, 2021. "COVID-19 impacts of inbound tourism on Australian economy," Annals of Tourism Research, Elsevier, vol. 88(C).
    5. McKibbin, Warwick J. & Wilcoxen, Peter J., 2013. "A Global Approach to Energy and the Environment," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 995-1068, Elsevier.
    6. Ngomba Bodi, Francis Ghislain, 2020. "Réflexions sur la crise actuelle de l’économie camerounaise liée au COVID-19 [Thoughts about the costs of the current crisis in the Cameroonian economy linked to COVID-19]," MPRA Paper 116377, University Library of Munich, Germany.
    7. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Esmedekh Lkhanaajav, 2016. "CoPS-style CGE modelling and analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-264, Victoria University, Centre of Policy Studies/IMPACT Centre.
    9. Zhang, Qingyong & Mao, Xianqiang & Lu, Jianhong & Guo, Zhi & Duman, Zaenhaer & Chen, Yongpeng & Song, Peng & Tu, Kevin, 2024. "EU-Russia energy decoupling in combination with the updated NDCs impacts on global fossil energy trade and carbon emissions," Applied Energy, Elsevier, vol. 356(C).
    10. Taheripour, Farzad & Chepeliev, Maksym & Aguiar, Angel H., 2024. "Assessing induced economic and environmental impacts of biofuels and their consequential life-cycle analyses in a computable general equilibrium framework: An exercise with GTAP-BIO model," 2024 Annual Meeting, July 28-30, New Orleans, LA 343655, Agricultural and Applied Economics Association.
    11. Marija Bratić & Aleksandar Radivojević & Nenad Stojiljković & Olivera Simović & Emil Juvan & Miha Lesjak & Eva Podovšovnik, 2021. "Should I Stay or Should I Go? Tourists’ COVID-19 Risk Perception and Vacation Behavior Shift," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    12. Acosta, Alejandro & McCorriston, Steve & Nicolli, Francesco & Venturelli, Ester & Wickramasinghe, Upali & ArceDiaz, Eduardo & Scudiero, Lavinia & Sammartino, Alejandro & Schneider, Fritz & Steinfeld, , 2021. "Immediate effects of COVID-19 on the global dairy sector," Agricultural Systems, Elsevier, vol. 192(C).
    13. Haddad, Salwa & Escobar, Neus & Bruckner, Martin & Britz, Wolfgang, 2022. "Promoting extensive cattle production in the European Union has major implications for global agricultural trade and climate change," Discussion Papers 324710, University of Bonn, Institute for Food and Resource Economics.
    14. Cui, Qi & He, Ling & Liu, Yu & Zheng, Yanting & Wei, Wei & Yang, Bo & Zhou, Meifang, 2021. "The impacts of COVID-19 pandemic on China’s transport sectors based on the CGE model coupled with a decomposition analysis approach," Transport Policy, Elsevier, vol. 103(C), pages 103-115.
    15. Miroslav Rončák & Petr Scholz & Ivica Linderová, 2021. "Safety Concerns and Travel Behavior of Generation Z: Case Study from the Czech Republic," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    16. Yothin Jinjarak & Ilan Noy & Quy Ta, 2022. "Pandemics and Economic Growth: Evidence from the 1968 H3N2 Influenza," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 73-93, March.
    17. Banerjee, Onil & Crossman, Neville & Vargas, Renato & Brander, Luke & Verburg, Peter & Cicowiez, Martin & Hauck, Jennifer & McKenzie, Emily, 2020. "Global socio-economic impacts of changes in natural capital and ecosystem services: State of play and new modeling approaches," Ecosystem Services, Elsevier, vol. 46(C).
    18. George Verikios & Maura Sullivan & Pane Stojanovski & James Giesecke & Gordon Woo, 2016. "Assessing Regional Risks From Pandemic Influenza: A Scenario Analysis," The World Economy, Wiley Blackwell, vol. 39(8), pages 1225-1255, August.
    19. Tiberiu Cristian Avrămescu, 2020. "Assessments on the Effects of the Coronavirus Pandemic on the Economies of the Central and South-East European Union Countries," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 105-112, August.
    20. Jiang, Shiqi & Lin, Xinyue & Qi, Lingli & Zhang, Yongqiang & Sharp, Basil, 2022. "The macro-economic and CO2 emissions impacts of COVID-19 and recovery policies in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 981-996.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:28:y:2022:i:1:p:131-152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.