Multiple effects of “distance” on domestic tourism demand: A comparison before and after the emergence of COVID-19

Abstract

This study investigated whether regional differences in economic, socio-psychological, and environmental distance affect tourists' destination choices. Taking Hangzhou, China, as a case, macro- and micro-level data were integrated to examine the effects of multi-dimensional distance on the city's tourism demand via a panel gravity model. All six distance variables were identified as influencing factors, but their effects varied in size and direction. Tourists' behavior has changed since COVID-19; as such, distance effects before and after its emergence were identified. Tourists were less sensitive to economic distance and price differences following the pandemic and tended to favor more culturally and climatically different destinations. The terror management theory was introduced to explain the shift in tourists' choices. Findings provide implications for destination management and marketing amid the pandemic.