Air quality effect on the hotel industry

This article makes an original contribution to the hospitality research literature. It proposes a curvilinear impact of air quality (AQ) on hotel sales (HS) and then empirically tests this nonlinear effect using data from 26 major tourist cities in China from 2002 to 2016. The results of dynamic pan...

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Bibliographic Details
Published inTourism economics : the business and finance of tourism and recreation Vol. 28; no. 4; pp. 942 - 950
Main Authors Wang, Liang-Ju, Chen, Ming-Hsiang, Lu, Lu
Format Journal Article
LanguageEnglish
Published London, England SAGE Publications 01.06.2022
Sage Publications Ltd
Subjects
Air quality
Airborne particulates
Hospitality industry
Method of moments
Owners
Particulate emissions
Particulate matter
Policy making
Sales
Tourism
hotel sales
dynamic panel model
system generalized method of moments
air quality
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Summary:This article makes an original contribution to the hospitality research literature. It proposes a curvilinear impact of air quality (AQ) on hotel sales (HS) and then empirically tests this nonlinear effect using data from 26 major tourist cities in China from 2002 to 2016. The results of dynamic panel regression test based on estimations of the system generalized method of moments reveal an inverse U-shaped impact of AQ (measured by concentrations of the fine particulate matter, i.e. PM2.5) on HS and thus validate the proposal. Empirical findings offer valuable policy implications for hotel business owners and tourism authorities and policymakers.
ISSN:1354-8166
2044-0375
DOI:10.1177/1354816620970747