Relationship between tourism and economic growth

Edward Nissan, Miguel-Angel Galindo and María Teresa Méndez

The Service Industries Journal, 2010, vol. 31, issue 10, 1567-1572

Abstract: The main goal of this paper is to determine whether tourism activity stimulates economic growth. The study indicates the main variables affecting tourism activity and shows a feedback effect between income and tourism. Findings indicate that tourism not only supplies necessary funds to finance firms' activities, but also stimulates the local firms' productivity and creates new job opportunities that increase the country's welfare. Variables that have important effects on tourism activity, such as entrepreneurship and prices have also been considered.

Date: 2010
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DOI: 10.1080/02642069.2010.485636

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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