The Impact and Spatial Spillover Effects of Tourism Development on Urban Welfare: Empirical Evidence from the Yangtze River Delta in China

Abstract

The ultimate goal of China’s tourism industry is to create a flourishing sector that brings happiness. It is of immense theoretical and practical importance to investigate the impact of tourism development (TD) on urban welfare (UW) and uncover its spatial spillover characteristics from a macro perspective. Utilizing panel data from 41 cities in the Yangtze River Delta region from 2000 to 2021, this study applies the spatial panel Durbin model to explore the direct and spillover effects of TD on UW. The results show that TD significantly boosts UW in both local and neighboring areas, with the spillover effects taking a dominant position in the total effects. Examining the sub-dimensions of UW, the local welfare effects of TD primarily stem from economic welfare, whereas the spillover effects are characterized by the “three-wheel drive” of economic, social, and environmental welfare. This study can provide practical insights into the coordinated and sustainable development of the regional tourism industry.