A Dynamic Panel Data Analysis of Climate and Tourism Demand

A new model that links climate and seasonal tourism demand is developed to study the effects of home climate, destination climate, and climate difference between destinations and source markets on seasonal tourism demand. Using the dynamic panel data technique, the study focuses on the demand of tourists from Hong Kong for 19 of the major tourism cities in Mainland China. The results show that the home climate, destination climate, and the difference in climate between home and destination cities all have significant influence on tourism demand. Furthermore, demand for Mainland Chinese tourism among Hong Kong residents is found to be driven by the climate at the place of origin, while the effects of destination climate and climate difference are weaker.