How broadband internet shapes household tourism decisions: a double/debiased machine learning-based difference-in-difference approach

Abstract

Purpose This study aims to examine the influence of broadband internet on Chinese households’ tourism decisions and spending patterns. It reveals the transformative potential of digital connectivity in enhancing tourism activity. Design/methodology/approach Using a rigorous double/debiased machine learning-based difference-in-difference (DMLDiD) method and extensive panel data, this research quantitatively analyzes the impact of broadband on household tourism engagement and financial allocations. It incorporates comprehensive robustness checks, including placebo tests and algorithm variations, to ensure the validity of the findings. Findings Within households with broadband access, the results indicate a significant increase of 3.54% and 31.24% in tourism participation and tourism-related expenditures, respectively. This study attributes these outcomes to enhanced household incomes, facilitated online transactions and alleviated credit constraints, highlighting notable disparities in impact across urban versus rural settings and among distinct demographic categories. Additionally, the moderating effects of marital status and household size reveal that married households and a greater number of members tend to leverage broadband access more effectively for making tourism-related decisions and expenditures. Originality/value By pioneering the application of the DMLDiD approach to examine household financial behaviors toward tourism, this study contributes novel insights to the economic discourse on the role of digital infrastructure in tourism development. It offers empirical evidence and strategic implications for policymakers and industry professionals who seek to leverage digital connectivity to enhance tourism.