Research on the Relationship between Residents’ Income Growth and Tourism Consumption: A Case Study of Wuhan

Abstract

With economic development, more and more people choose to travel. The income of residents is an important factor affecting tourism consumption. Taking Wuhan City as an example, this paper selects data from 1996 to 2015, uses Eviews software and co-integration analysis method to conduct an empirical analysis on residents’ per capita disposable income and per capita tourism consumption expenditure, and quantitatively studies its dynamic relationship. The results show that there is a long-term stable relationship between the growth of residents’ income and tourism consumption. The growth of residents’ income has promoted tourism consumption expenditure. For every 1% increase in residents’ disposable income, tourism consumption expenditure will increase by 1.1317%. According to this result, it is possible to stimulate residents’ tourism consumption by increasing the income level of residents and instituting some holiday welfare policies, thereby enabling China’s tourism industry to develop better and promote economic growth.