Tourism development and residents’ well-being: Analysis of top ten tourist destinations using quantile-on-quantile approach

Abstract

The present paper investigates the relationship between tourism development and residents' well-being in the top ten tourist destinations utilizing monthly data from 2007 to 2019. The novel quantile-on-quantile (QQ) regression approach introduced by Sim and Zhou is employed for this research, which offers an ideal framework for capturing the overall dependence structure between tourism and residents' well-being. The outcomes reveal that tourism development exhibits a positive influence on residents' well-being for France, Italy, Germany, Russia, and Spain across most of the quantiles, while tourism development negatively affects residents' well-being for Turkey and the UK in the majority of the quantiles. The study also finds that China, Mexico, and the US produce the mixed (positive and negative) effects of tourism development on residents' well-being in the majority of the quantiles. Furthermore, there are substantial variations throughout nations and across quantiles of tourism development and residents' well-being within each nation. Additionally, the results of Granger causality in quantiles validate the bidirectional causal association between tourism development and residents’ well-being for all selected nations. This paper concludes with a discussion of the implications for theory and practice.