Does urban tourism development impact urban housing prices?

Abstract

Purpose The purpose of this study is 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. Design/methodology/approach 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. Findings 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. Originality/value 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.

The Impact of the Digital Economy on Urban House Prices: Comprehensive Explorations

“…On the other hand, Tourism showed a negative, albeit statistically significant, coefficient. This supports the findings of Alola et al (2020) and Cong et al (2023), which suggest that tourism development suppresses urban housing prices. The growth of tourism may increase the supply of housing in an area to meet the demand for tourist accommodation.…”

“…Policy interventions and regulatory frameworks have profound implications for housing markets as well, as land-use constraints (Pollakowski & Wachter, 1990), home-purchase limits (Jia et al, 2018), foreign capital inflows and speculation (Wong et al, 2020), and political uncertainty (Nguyen & Vergara-Alert, 2023) can affect housing affordability and availability. Furthermore, urban development patterns such as tourism development (Cunha & Lobão, 2022;Cong et al, 2023) and urbanization level (Liu et al, 2022) also influence housing markets. Neighborhood characteristics such as railway sound barriers (Lee & Pang, 2022) impact property values and market demand as well.…”

Does the digital economy promote or inhibit income inequality?

“…Because there could be underlying deficiencies in the study design, the observed impact of digital economy on income inequality based on the benchmark regression may be coincidental. To address this concern, a placebo test was conducted following the methodology described in Ding et al [ 60 ], Cong et al [ 61 ] and Cong et al [ 62 ]. In this test, all data was removed from the sample and then randomly reallocated before re-estimating the baseline test.…”