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us year. Ningbo received over 46 million domestic visitors between January and September in 2013. Among these domestic tourists, more than 80 percent of them were individual travelers all around China. Also, self-drive tours have gains their popularity (Minxian).
In 2005, Ningbo railway passenger volume reached 14.85 million people; Ningbo-Taizhou-Wenzhou railway began to run in 2009, in 2010, Ningbo railway passenger volume reached 19 million, increased by 27.95% than the previous five years. Is expected in 2015, after Hangzhou-Ningbo passenger dedicated line and Shanghai-Ningbo railway which across the Hangzhou bay will be built, Ningbo railway passenger volume will reach 35.55 million people. (Table5)
Table6. The number of railway passenger volume per year
Unit：million
year railway passengers
2006 14.85
2010 19.00
2015 35.55

5.24 Impacts on real estate
According to a study conducted by researchers from University of California and China’s Tsinghua University, high speed rail systems connect “second tier” cities to global hubs, therefore more and more citizens choose to move to the smaller cities where hosting prices are relatively lower, creating a real estate boom. It is estimated by the researchers that when “market potential” (an access to products, services as well as labor) is increased about ten percent by a new high speed rail line, housing prices would increased by 4.5 percent (Kahn). Matthew Kahn, a professor at the UCLA Institute of the Environment, is a co-author of this study. He defines smaller cities as the cities that “need to be too far to drive to but too close to fly to the nearest ‘megacity’. In our study, a trip from Ningbo to Shanghai would take fifty three minutes by Hong Yong High Speed Rail.
Matthew Kahn and his co-author Siqi Zheng (2013) found that high speed rail systems unintentionally created new suburbs about sixty miles to four hundreds and seventy miles from “megacity”. They called these new suburbs as “sweet spots”. The distance between Hangzhou and Ningbo is around 141.06 kilometers, which is equal to 87.65 miles. With the designed speed of 350 kilometers per hour, Hong Yong High Speed Rail is able to provide a good connection between Ningbo and other cities, particularly the mega city Hangzhou. It is estimated that cities along the high speed rail line would experience “revitalization of downtowns and add multi-family unites” near rail stations. On the one hand, both the selling price and rents are high in the mega city, it is likely that the subset of households as well as companies that are less willing to pay to locate in mega city would consider relocating to the second tier cities. For instance, in February 2014, the average residential housing price in Ningbo is 13,741 RMB per square meter, while the average residential housing price in Hangzhou reaches 19,284 RMB per square meter (Xi Tai Data). On the other hand, these decentralized households would like to enjoy the unique shopping centers and favorable restaurant options in mega cities. A high speed rail line can meet the requirements of these companies and individuals, as they can easily travel to the major cities. Citizens are allowed to swiftly move from secondary cities to mega cities, they can enjoy the benefits of megacity access without suffering from the social costs, such as soaring