Economy

Tourism is a key driver of regional economic development and a foundational sector for national economic growth. Understanding the factors influencing the tourism industry is crucial for policy and investment decisions. This study examines the determinants of tourism revenue in Hunan Province, China, from 2003 to 2019. Using factor and regression analysis, the study investigates the impact of nine independent variables: rail and road travel distances, civil air passenger traffic, total number of tourists, art performance groups, GDP, urban and rural disposable income, and food and beverage consumption. All nine factors positively correlate with Hunan’s tourism revenue, indicating that economic and infrastructural variables significantly influence tourism industry growth. Strengthening tourism infrastructure, enhancing investment channels, and supporting supply-side reforms are essential for sustained growth. Regional collaboration and innovation should be prioritized to drive long-term industry development. Policymakers should focus on expanding tourism consumption capacity, improving connectivity, and fostering an innovation-driven tourism economy to enhance regional and national economic benefits.