Original scientific paper
https://doi.org/10.37741/t.73.2.3
Tourism-Led Growth in Shandong, China: A Comparison of Inbound and Domestic Tourism
Chor Foon Tang
; Centre for Policy Research, Universiti Sains Malaysia, Penang, Malaysia
Zhen Qi
; School of Economics and Management, Qingdao Institute of Technology, Shandong, China
Irwan Trinugroho
; Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
Abstract
This article investigates the impact of internal tourism on economic growth in Shandong, China, by
segmenting the analysis into inbound and domestic tourism using the panel IV estimator. The results
indicate that internal tourism contributes significantly to the growth of Shandong province, with domestic
tourism having a comparatively more significant impact than inbound tourism. In addition to
tourism, the study also found that interest and exchange rates hurt growth, while merchandise exports
effectively promote economic growth in Shandong. Based on these findings, policymakers should aim
to keep interest and exchange rates stable and competitive, adopt an expansionary monetary policy to
encourage domestic investment in infrastructure and develop marketing plans to promote domestic
tourism. Additionally, private tourism stakeholders should collaborate with public agencies to market
and promote local attractions and offer discounted hotel accommodations to attract additional tourist
arrivals and stimulate economic growth.
Keywords
domestic tourism; internal tourism; inbound tourism; TLG; Shandong
Hrčak ID:
329976
URI
Publication date:
8.4.2025.
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