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The Impact of Climate Change on Tourism Demand in China

Author

Listed:
  • Meng-Chang Jong

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300, Kota Samarahan, Sarawak, Malaysia)

  • Chin-Hong Puah

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300, Kota Samarahan, Sarawak, Malaysia; & Institute of Sustainable and Renewable Energy (ISuRE), Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia)

  • Mohammad Affendy Arip

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300, Kota Samarahan, Sarawak, Malaysia)

Abstract

This study quantified the impact of climate on the international tourism demand in China. Due to rising awareness and urgency to combat climate change, there is a growing need to better grasp the possible implications and the risk of climate change to the tourism industry. The tourists’ travel decision can be influenced by both climatic and non-climatic factors, and thus this study has integrated both factors into the models. The climatic variable is represented by Tourism Climate Index (TCI) and Holiday Climate Index (HCI) while the selected non-climatic determinants are tourists’ income, tourism price, exchange rate and transportation cost. The empirical findings showed that climate conditions significantly and adversely affect China’s tourism demand. Tourists’ income level, as expected, positively affects their decision to travel to China. Meanwhile, the tourism price, exchange rate, and transportation cost negatively impact China’s tourism industry. Although some valuable results have been found, more works are required to understand its long-haul significance to the tourism industry, especially during extreme events such as extreme weathers, pandemics, financial crises and etc.

Suggested Citation

  • Meng-Chang Jong & Chin-Hong Puah & Mohammad Affendy Arip, 2024. "The Impact of Climate Change on Tourism Demand in China," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 482-488, May.
    • Handle: RePEc:eco:journ2:2024-03-49
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Climate Change; Tourism Demand; Tourism Climate Index; Holiday Climate Index; Panel Autoregressive Distributed Lag;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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