Africa’s paradox: unleashing tourism potential through resource endowment

Thierry Messie Pondie () and Fabrice Ewolo Bitoto ()
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Thierry Messie Pondie: IAE Lille University of Management, University of Lille
Fabrice Ewolo Bitoto: ACEDA, University of Dschang

Mineral Economics, 2025, vol. 38, issue 2, No 9, 377-396

Abstract: Abstract Despite the abundant literature on the natural resource outcomes, little attention has been paid to international tourism demand. However, tourism, like the exploitation of natural resources, is of considerable importance for the development of natural resource-rich African countries. This paper analyzes the direct and indirect effects of natural resources on tourism in 52 African countries. Using data from 1995 to 2021, Driscoll-Kraay, Lewbel 2SLS and GMM methods show a negative impact of natural resources on tourism in Africa. In addition, the study of transmission channels using structural equation models shows that natural resources are transmitted through infrastructure, governance and insurance. In view of these results, public policies should promote the sound management of financial resources derived from the exploitation of natural resources for the benefit of a sector such as tourism. Government should, strengthen environmental regulations and responsible mining practices. Also, policies aiming to fight corruption must be adopted in order to increase tourism revenues. While democratic institutions can play a crucial role in this endeavor, African states in addition should develop security and non-life insurance mechanisms for potential travelers to boost the sector.

Keywords: Africa; Tourism; Natural resources; O55; Q26; Q34; Z32 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13563-025-00489-8

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