EconPapers    
Economics at your fingertips  
 

An Analysis of the Impact of Economic Growth, Political Instability and Exchange Rate on Tourism Growth in South Africa

Daniel Francois Meyer ()
Additional contact information
Daniel Francois Meyer: North-West University

No 04DM, Working papers from Research Association for Interdisciplinary Studies

Abstract: Globally the tourism sector is one of the main economic sectors in attracting and generating foreign revenue. The sector accounts for seven percent of global foreign revenue as an export industry. In South Africa the low growth environment over the last decade has resulted in the need to find alternative economic sectors in support to traditional sectors such as mining and manufacturing, to drive higher levels of economic growth in the country. The aim of this study was to analyse the relationship between tourism as the dependent variable, and economic growth, exchange rate changes and political stability, as independent variables. The study region selected is South Africa, which is classified as a developing country and is in many cases seen as the proxy for emerging economies. This study followed a quantitative research approach with time series data from 1996 to 2017. The relationships between the variables were analysed by means of the Johansen cointegration, Vector Error Correction and Granger causality econometric models. The results indicated that there are both long and short-run relationships between the variables. A number of policy recommendations that could potentially contribute to the extension of the role of tourism in development include improved political and currency stability in the country as well as the relaxation of visa requirements.

Keywords: Economic growth; political instability; South Africa; tourism (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr and nep-tur
Date: 2018-11
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Proceedings of the 11th International RAIS Conference on Social Sciences and Humanities, November 19-20, 2018, pages 22-31

Downloads: (external link)
http://rais.education/wp-content/uploads/2018/11/04DM.pdf Full text (application/pdf)

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:smo:jpaper:04dm

Access Statistics for this paper

More papers in Working papers from Research Association for Interdisciplinary Studies
Bibliographic data for series maintained by Eduard Burcea ().

 
Page updated 2019-01-29
Handle: RePEc:smo:jpaper:04dm