With recent improvements in air quality in China, it is crucial to revisit the relationship between air quality and tourism. This study expands on Wang and Chen (2021) by using a larger dataset of 100 major tourist cities over a longer timeframe (2004–2019). The nonlinear dynamic panel regression results confirm the existence of an inverted U-shaped effect. However, unlike the previous study, linear dynamic panel regression results indicate that air quality improvements now have a positive impact on domestic tourism, highlighting the success of China’s recent air quality policies. Despite these gains, air quality continues to negatively affect inbound tourism, suggesting it has yet to reach levels deemed acceptable by international visitors. These findings provide valuable insights for shaping tourism policy and strategic planning.