TITLE:
Research on the Relationship between Residents’ Income Growth and Tourism Consumption: A Case Study of Wuhan
AUTHORS:
Ruoting Zhang
KEYWORDS:
Residents, Disposable Income Per Capita, Tourism Consumption Per Capita, Cointegration Analysis
JOURNAL NAME:
Modern Economy,
Vol.11 No.3,
March
30,
2020
ABSTRACT: With economic development, more and more people
choose to travel. The income of residents is an important factor affecting
tourism consumption. Taking Wuhan City as an example, this paper selects data
from 1996 to 2015, uses Eviews software and co-integration analysis method to
conduct an empirical analysis on residents’ per capita disposable income and
per capita tourism consumption expenditure, and quantitatively studies its dynamic
relationship. The results show that there is a long-term stable relationship
between the growth of residents’ income and tourism consumption. The growth of
residents’ income has promoted tourism consumption expenditure. For every 1%
increase in residents’ disposable income, tourism consumption expenditure will
increase by 1.1317%. According to this result, it is possible to stimulate
residents’ tourism consumption by increasing the income level of residents and
instituting some holiday welfare policies, thereby enabling China’s tourism
industry to develop better and promote economic growth.