Too Much of a Good Thing? The Economic Impact of Hotel Investment in Hainan

Shanshan Dai, Honggang Xu, Stephen Albert Pratt

Research output: Journal article publicationJournal articleAcademic researchpeer-review

2 Citations (Scopus)


Hotel investment is assumed to provide many positive benefits to the local economy. Given strong tourism growth in China, the impacts of large increases in new hotel investment in China warrants further investigation. A regional computable general equilibrium model was developed to empirically examine the economic impact of large hotel investment in the Hainan province, China. The net economic impact of hotel investment on gross domestic product and employment were evaluated. The model also investigated sectoral production effects. The results showed that investment in the hotel industry moderately boosts all industry sectors and improves economic output and employment. Transmission mechanisms were identified to provide insights for future hotel investment policies.
Original languageEnglish
Pages (from-to)26-45
Number of pages20
JournalJournal of China Tourism Research
Issue number1
Publication statusPublished - 2 Jan 2017


  • computable general equilibrium modeling
  • economic impact
  • foreign direct investment
  • Hainan
  • Hotel investment

ASJC Scopus subject areas

  • Cultural Studies
  • Language and Linguistics
  • Linguistics and Language
  • Tourism, Leisure and Hospitality Management

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