The impact of holiday tourism development on tourism total factor productivity: Evidence from China

Tourism development during holiday periods may influence tourism total factor productivity (TTFP) in the industry. However, little is known about the impact of holiday tourism on TTFP. Focusing on China's Golden Week holiday system, this study applies dynamic panel models to test the effect of holiday tourism development on TTFP with panel data of 31 provinces in mainland China from 2001 to 2019. The study also compares the effects before and after 2008 when the Golden Week holiday system changed from three weeks to two weeks with shorter holiday breaks. Results show that holiday tourism development has a negative effect on TTFP. Before 2008, the magnitude of the negative effect was constant while after 2008 the negative effect was reduced significantly. This study contributes to the understanding of TTFP from a holiday tourism perspective. The findings offer valuable implications for national holiday governance and tourism productivity in developing countries.