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Does urban tourism development impact urban housing prices?

Author

Listed:
  • Cong, Shufeng
  • Chin, Lee
  • Abdul Samad, Abdul Rahim

Abstract

The purpose of this study was to investigate the relationship between tourism development and urban housing prices in Chinese cities. Specifically, the study aimed to explore whether there is a relationship between the two variables in tourist and non-tourist cities and whether there is a non-linear relationship between them. In this study, the entropy method was used to construct the China City Tourism Development Index, which provides a more comprehensive measure of the level of tourism development in different cities. In total, 45 major cities in China were studied using the panel data approach for the period of 2011 to 2019. The empirical analysis conducted for this study found that tourism development affects urban house prices and that there is an inverted U-shaped relationship. However, this varies across cities, with house prices in tourist cities tending to be more influenced by tourism development than non-tourist cities. Also, foreign direct investment, population size, fixed asset investment and disposable income per capita were found to have an impact on house prices in both tourism and non-tourism cities.There are significant differences in tourism development and urban house prices in different cities in China. This study considers these differences when examining the impact of tourism on house prices in 45 major cities in China by dividing the sample cities into tourist and non-tourist cities.

Suggested Citation

  • Cong, Shufeng & Chin, Lee & Abdul Samad, Abdul Rahim, 2023. "Does urban tourism development impact urban housing prices?," MPRA Paper 124030, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124030
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    References listed on IDEAS

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    More about this item

    Keywords

    housing prices; tourism; tourism cities; non-tourism cities; fixed effect; China;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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