Tourism- versus non-tourism-led growth: Which is superior?

Anda Nugroho and George Verikios

Annals of Tourism Research, 2025, vol. 114, issue C

Abstract: This study reveals the underlying mechanism by which tourism expansion drives long-term economic growth and compares it to non-tourism-led growth. We perform long-run simulations (up to 30 years) using a general equilibrium model with dynamic macroeconomic properties that considers the economy's transition between steady states on a balanced growth path. We find that whether or not tourism can drive growth depends on its relative capital intensity compared to the rest of the economy. In our case, the expansion of tourism alters sectoral rates of return, leading to inter-sectoral shifts that encourage a higher capital stock. As output per worker increases, the economy becomes more productive. In the absence of mining, tourism is among the leading drivers of growth.

Keywords: Tourism-led growth; Industry comparison; Dynamic computable general equilibrium model; Sectoral shifts (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160738325001069
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:114:y:2025:i:c:s0160738325001069

DOI: 10.1016/j.annals.2025.104000

Access Statistics for this article

Annals of Tourism Research is currently edited by John Tribe

More articles in Annals of Tourism Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().