Effects of information consumption on tourism economy in context of a new development pattern: Evidence from pilot cities implementing information consumption policies

In the context of the new development pattern, information consumption plays a pivotal role in promoting the high-quality development of service consumption and facilitating the thorough implementation of the strategy to expand domestic demand. This study investigates the impact of information consumption pilot cities on regional tourism economic development, focusing on the period between 2011 and 2019. Using a robust dataset consisting of panel data from 278 prefecture-level cities across China (not including the data of Hong Kong, Macao and Taiwan), the paper employs the difference-in-differences (DID) method to assess how the establishment of information consumption pilot cities has influenced tourism economies at the regional level. The study examines not only the direct economic impacts but also the underlying mechanisms driving these effects. The findings of this paper suggest that the policy of establishing information consumption pilot cities has had a significant and positive impact on local tourism economies. More specifically, the research reveals that the introduction of this policy has contributed to the growth of regional tourism by stimulating the demand for services and enhancing the overall economic activity within these cities. The robustness of this conclusion is confirmed through a series of sensitivity and placebo tests, which demonstrate that the observed effects are not merely due to other external factors or statistical anomalies. Additionally, the research highlights that the effectiveness of the information consumption pilot cities policy varies across different regions and cities. The positive effects on tourism economic development are especially pronounced in eastern regions of China, where information consumption infrastructure has been more readily adopted, and in cities with a relatively underdeveloped tertiary sector. This suggests that cities in these categories stand to benefit more from the policy, as the introduction of information consumption services helps to bridge gaps in service sectors and drive economic growth. The paper further delves into the mechanisms through which the information consumption policy enhances local tourism economies. It finds that government investments in science and education, coupled with rising incomes among local residents, play critical roles in facilitating this process. As the average income of residents increases, their purchasing power expands, leading to higher demand for tourism services. Simultaneously, increased government support for scientific and educational advancements fosters innovation and the development of new service industries, which are key drivers of tourism growth. This study not only contributes to the theoretical understanding of how information consumption pilot cities impact tourism economics but also provides practical insights for policymakers. It offers valuable recommendations for local governments to design and implement information consumption pilot city programs tailored to regional characteristics, helping to ensure that the tourism industry grows in a high-quality, sustainable manner. By aligning these policies with local needs, China can effectively promote both regional economic development and the high-quality growth of its tourism industry.