Does world heritage site initiation promote tourism? A difference-in-difference approach

Abstract

Extant studies have found that the inscription of World Heritage sites (WHS) has no or negative effect on tourism in China, which does not explain why Chinese local governments are eager to apply for WHS. This study employs the difference-in-difference approach and city-level data from China to assess the effect of WHS over a more extended period, starting from initiation instead of inscription. The results indicate that WHS initiation can promote tourism, while WHS inscription reduces tourism revenue. Furthermore, heterogeneity analysis reveals that WHS initiation has a more positive effect on domestic tourism revenue in the eastern region of China. In contrast, WHS inscription has a more negative effect on tourism revenue in the western region.