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Political tides and tourist waves: Mainland China’s policy impact on Taiwan’s tourism

Author

Listed:
  • Yu, Minjie
  • Ma, Yin
  • Wang, Yipeng
  • Huang, Ho-Chuan

Abstract

This study assesses the impact of Mainland China’s open-door and closed-door tourism policies on tourist arrivals in Taiwan using the regression control method. The period from 2001 to 2019 highlights that political dynamics significantly influence tourism flows. The enactment of the open-door policy (2008–2015) coincided with a marked increase of Mainland Chinese tourists in Taiwan, averaging an annual rise of 2.19 million. In contrast, the closed-door policy (2016–2019) saw a drastic average annual reduction of 2.53 million visitors. These stark contrasts confirm the potent effect of political policies on tourism. The research underscores the potential of tourism as a diplomatic bridge, suggesting strategic importance for policymakers and industry leaders in navigating the intersection of politics and tourism.

Suggested Citation

  • Yu, Minjie & Ma, Yin & Wang, Yipeng & Huang, Ho-Chuan, 2024. "Political tides and tourist waves: Mainland China’s policy impact on Taiwan’s tourism," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 421-435.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:421-435
    DOI: 10.1016/j.eap.2024.06.024
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    More about this item

    Keywords

    Taiwan; Mainland China; Open-door tourism policy; Closed-door tourism policy; Regression control method;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F35 - International Economics - - International Finance - - - Foreign Aid

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