How Tourism Industry Development Affects Residents’ Well-Being: An Empirical Study Based on CGSS and Provincial-Level Matched Data

Happiness is not only for the pursuit of individuals but also the common goal of society as a whole. The tourism industry can promote social well-being by stimulating consumption, narrowing the income gap and improving infrastructure. However, overemphasizing the economic benefits of tourism industry development will produce a series of social problems, including environmental damage, forced consumption, and vicious price hikes. When the negative impact of industry development exceeds the positive impact of economic benefits, the happiness enhancement effect of tourism will decline significantly, resulting in the “well-being paradox” of tourism. Based on Chinese General Social Survey (CGSS) data and provincial-level matched data, this study finds that the development of China’s tourism industry has a negative impact on residents’ well-being; however, there is a masking effect that disguises the actual income gap among residents. Tourism industry development can reduce the negative effect on residents’ well-being by narrowing the income gap. At the same time, the empirical results show that gender can significantly moderate the masking effect and that this income gap effect impacts women less than men.