The “Ding Zhen Effect” and the Reshaping of Tourism Markets in Marginal Regions from the Perspective of the Long Tail Theory —A Case Study of Litang County, Garzê Prefecture

Abstract

Activating the tourism demand of surrounding destinations is still a challenge for regional tourism economy. The Ding Zhen phenomenon in November 2020 provides an ideal and almost natural experimental framework to study the impact of IP grid impact on the reshaping of marginal markets. In this paper, the long tail theory is used as the theoretical framework, and the two-way fixed effect (TWFE) difference estimator (DID) is used to identify causal effects, using the monthly panel data from 2019 to 2022. The results showed that after controlling the related fixed effects and economic covariates, Ding Zhen phenomenon induced a statistically significant net increase of about 18.5% in Litang tourism search compared with the control group (p < 0.01). This definite treatment effect lasted for two years, indicating that the market structure was reshaped, rather than the flow fluctuated temporarily. It is worth noting that the net effect found is far greater than the observed total increase (9.8%), which shows that the rough IP has a very strong power when the mixed factors are eliminated. The mechanism analysis confirms the transmission path of three stages: the end of information barrier, the demand meeting driven by UGC, and the activation of the long tail market. This paper changes the application of the long tail theory from a simple description to a real causal conclusion, and provides theoretical basis and practical cases for poor counties to use IP to transform the tourism market.