Examining the Potential Impacts of Air Pollution on China’s Inbound Tourism: The Case of Beijing and Shanghai

Concerns about China’s air quality, and its impact on the important tourism industry have been on the debate in recent years. This article aims to investigate the potential effect of air pollution on direct economic impact of tourism, using the case of Beijing and Shanghai. The results indicate that air pollution negatively affects China's inbound tourism, resulting in huge loss of tourist arrivals and receipts, and Beijing suffers a greater loss in comparison with Shanghai, its loss in tourist number amounts to 1569,700 persons, equal to CNY 10264.268 million in tourism receipts, and the GDP losses ranges from CNY 20528.536 to 41057.072 across major source countries. This study provides a quantification of the impact helpful to generate a social awareness of air pollution detrimental impacts on inbound tourism and hence the economy.