Increasing Tourist Arrivals: Do Capital Investment and Government Spending Matter?
Kafigi Jeje ()
Additional contact information
Kafigi Jeje: Institute of Accountancy Arusha
The Journal of Accounting and Management, 2021, issue 1(11), 122-133
The contribution of tourism sector on economic growth has been noticed in many economies around the globe. Countries strive to improve their tourism sectors by employing strategies that seek to attract a sizable amount of tourist arrivals. Literature suggests that both capital investment in travel and tourism, and government spending on travel and tourism service are crucial factors in promoting the competitiveness of the sector. However, little is known as whether the two factors influence the number of arrivals. Therefore, this study sought to establish the contribution of both government spending and capital investment in influencing tourist arrivals. The study employed data from 150 countries focusing on the years 2010 to 2018. Based on the multiple regression analysis, this study confirms that there exist positive linear relationships between number of arrivals and capital investment in travel and tourism for the years 2010 to 2018. Nevertheless, the study finds that government spending does not influence the number of arrivals. Therefore, governments need to study and understand the interconnectedness between government spending and capital investment in order to carefully allocate their resources in advancing the competitiveness of the investment climate of their respective tourism sectors.
Keywords: tourism; capital investment; government spending; tourist arrivals (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:dug:jaccma:y:2021:i:1:p:122-133
Access Statistics for this article
More articles in The Journal of Accounting and Management from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Florian Nuta ().