Insights into Domestic Tourism: Empirical Evidence from Hainan, China

This study offers an in-depth examination of domestic tourism demand in Hainan, China, utilizing annual data from 1990 to 2023, which includes the COVID-19 pandemic period. Applying multiple linear and beta regression models, the research investigates key determinants, such as income, price factors, infrastructure development, and disruptive events, on Hainan’s domestic tourism demand. The results identify sustained economic growth in China as the dominant driver of domestic tourism to Hainan, with income elasticity confirming that domestic travel to Hainan is considered a luxury good. As expected, the COVID-19 pandemic had a negative impact on domestic tourist arrivals. In contrast, price levels and the number of travel agencies are not statistically significant, suggesting a shift in tourist preferences toward self-directed and experience-oriented travel. The Hainan Round-Island Railway shows a positive but model-dependent effect on domestic tourism demand. Overall, the findings contribute to a deeper understanding of domestic tourism patterns in Hainan and offer valuable guidance for policymakers and marketers aiming to attract high-income and high-potential domestic travellers.