The economic impact of tourism in SIDS

Small Island Developing States (SIDS) are faced with many challenges to economic development. Tourism is seen as a viable, and sometimes, only means of economic growth. This research compares the economic impact of tourism to seven SIDS. The research employs input output analysis, linkage analysis and a CGE model to assess the macroeconomic and sectoral impacts of increased tourism in these islands. The findings show that the transportation sector remains a key sector. The tourism income multipliers show that tourism generates a large amount of economic activity but the income that remains in the destinations is often very small. The results show that taking advantage of economies of scale maybe a way to maximize the benefits from tourism.     

The economic impact of tourism in developing countries

The paper examines the costs and benefits brought by tourism to the economies of developing countries. The criteria for decision making are discussed and the main policy implications are mentioned. The paper concludes with a suggested model for evaluating the effects of specific projects within the framework of a sectoral analysis of an economy.     

Foreign tourism in Greece: An economic analysis

Foreign exchange earnings are vital for developmental efforts, particularly in the industrial sector. However, Greece's visible exports alone do not generate sufficient income for such purposes, thus providing a strong justification for blending tourism into the country's general economic development strategy. From a development perspective, foreign exchange earnings are only one aspect of the total economic picture; eg the development of an export industry has varying repercussions on income, employment and other economic activity. The extent of these effects will vary according to the linkages between industrial sectors. This article assesses the importance of tourism to the Greek economy in terms of its impact on foreign exchange earnings and the balance of payments. Tourism's contribution to gross domestic product, employment and other economic activity is also examined.     

Educational tourism and its implications on economic growth in Malaysia

The effect of educational tourism on Malaysia’s economic growth is examined in this study by extending the Solow growth model. This study uses the sample from 2002:Q1 to 2014:Q4. The newly developed Bayer–Hanck combined tests for cointegration and the Granger causality test were employed to examine the long-run and causal relationships among the variables. The empirical findings suggest that economic growth, educational tourism, and other determinants are cointegrated. Educational tourism has a bi-directional causal relationship with economic growth in the short-run but there is a uni-directional Granger causality runs from educational tourism to economic growth. This study provides an essential insight for Malaysia to create policies that promote educational tourism, thereby encouraging economic growth in the long-run.     

The impacts of international tourism demand on economic growth of small economies dependent on tourism

This paper studies the impacts on economic growth of a small tourism-driven economy caused by an increase in the growth rate of international tourism demand. We present a formal model and empirical evidence. The ingredients of the dynamic model are a large population of intertemporally optimizing agents and an AK technology representing tourism production. The model shows that an increase in the growth of tourism demand leads to transitional dynamics with gradually increasing economic growth and increasing terms of trade. In our empirical application, an econometric methodology is applied to annual data of Antigua and Barbuda from 1970 to 2008. We perform a cointegration analysis to look for the existence of a long-run relationship among variables of economic growth, international tourism earnings and the real exchange rate. The exercise confirms the theoretical findings.     

International tourism demand in Asia: before and after the economic crisis

A subprime mortgage crisis erupted in the United States in 2007 and resulted in an economic crisis spread worldwide. This study focused on seven major Asian tourist destinations and investigated the changes in international tourism demand before and after economic crisis. The data period was January 2004 to December 2014. The results demonstrate the tourist numbers in each country was affected by the income variable. The decrease in tourist numbers was most significant during and after the economic crisis, indicating an increase in the sensitivity of tourists toward their economic-crisis-based income fluctuations, causing changes in their travel behavior.     

The economic impact of tourism at the port of Miami

The total disaggregated economic impact that cruise industry tourism has on Dade County is examined in economic terms using a regional input-output model developmen by the Regional Science Research Institute. The analysis indicates that cruise industry tourism at the Port of Miami had a total economic impact on Dade County of $546 million in 1982. The total direct, indirect and induced number of jobs generated by the cruise industry and cruise passengers is 21,627. Wages totalling $271 million were paid in 1982 in Dade County as a result of the total impact of the cruise industry. Finally, the model revealed that cruise industry tourism contributed $264 million to the county's Gross Regional Product in 1982     

Dynamic relationship between tourism,economic growth,and environmental quality

Abstract

In the recent era of globalisation, the tourism sector is growing rapidly and stimulates economic growth across the world, however, the inevitable environmental consequences of tourism cannot be ignored. For sustainable tourism, it is necessary to understand the interrelationship between economic growth, tourism, and environmental quality. Hence, the objective of the current research is to investigate the dynamic relationship between tourism, economic growth, and CO₂ emissions from 1995 to 2014 in the context of BRICS economies. A group of econometric tests robust to heterogeneity and cross-sectional dependence is applied to achieve accurate and unbiased results. Empirical findings propose that tourism sector significantly encourages economic growth; however, tourism degrades the quality of the environment. Also, globalisation has a long-term relationship with economic growth but an insignificant relationship with CO₂ emissions. The long-term elasticities further recommend that investment stimulate economic growth and mitigate CO₂ emissions. Moreover, environmental Kuznets curve (EKC) holds in BRICS countries in its significance to tourism and globalisation. Finally, a heterogeneous panel non-causality test detects bi-directional causality between tourism receipts and CO₂ emissions. Moreover, tourism and investment in tourism Granger cause each other. Empirical findings direct towards important policy implications.     

The effect of international tourism on economic development: An empirical analysis

The expansion of international tourism in developing countries is generally considered to promote their economic development. In this paper, the impact of international tourism on economic development is modelled using an aggregate production function framework. It specifically investigates intersectoral externalities and marginal factor productivity differences between the international tourism sector and the rest of the economy. The net effect of international tourism on GDP per capita is examined via an empirical analysis of 37 developing economies. The results indicate that international tourism may positively affect economic development in these countries.     

Quantitative approaches for economic use of emerging technology in the tourism industry: unmanned aerial vehicle systems

As technological innovations develop, new categories of services are emerging. In the tourism industry, one of the limelight technologies is an unmanned aerial vehicle (UAV) for virtual tourism systems, monitoring, and patrol activities for safety and security. However, for the successful application of a UAVs system, it is important to construct the system in an economic and efficient manner. In this study, quantitative approaches for a UAV system are introduced to support the economic establishment and its efficient operation. Two mathematical models are developed to construct and operate UAVs systems for recreation and safety purposes in the tourism industry. The validity of the proposed models is demonstrated via numerical experiments for both cases. To our knowledge, this is the first approach to address the issues of a UAV system design for tourism purposes. This study is expected to be the theoretical basis for future use of UAVs in the tourism industry.     

Unemployment effects of economic crises on hotel and residential tourism destinations: The case of Spain

This paper analyses the effects of economic crises on tourism destinations from a city and regional point of view. The objective is to determine which kind of Spanish “Sun and Beach” tourism destinations, residential or hotel, has better weathered the most recent economic crisis in Spain, linked to the Global Financial Crisis of 2007/8. For this purpose, the authors have analysed the increases in the unemployment rates of a pool of 138 tourist destinations located on the Spanish Mediterranean coastline. The main finding of the paper is that during the crisis, residential destinations experienced a greater destruction of employment than hotel destinations. This result is consistent with previous literature that indicates a better economic performance of the hotel tourism development model.     

Nexus of tourism,terrorism, and economic growth in Thailand: new evidence from asymmetric ARDL cointegration approach

ABSTRACT

This study investigates the asymmetric (nonlinear) relationship between tourism, terrorism, and economic growth of Thailand. The study employed an annual data set that ranges from 1990 to 2017 by using a novel co-integrating technique known as asymmetric ARDL cointegration approach advanced by Shin, Yu, and Greenwood-Nimmo. The outcome of the present study revealed significant differences in the reaction of the economic growth because of negative and positive changes in tourism and terrorism. The obtained asymmetric results can be helpful for more proficient policymaking and forecasting regarding the economy of Thailand. Ignoring intrinsic asymmetries may misrepresent implication.     

Alternative tourism in Montserrat

Small island states or dependencies have increasingly turned to international mass tourism as a strategy for overcoming their underdeveloped status. However, mounting criticism of this sector has increased the interest in alternative tourism. The Caribbean island of Montserrat is well positioned to implement an ecotourism strategy based on the island's scenic beauty, biodiversity and historical/cultural attributes. This would augment an already unconventional tourism product emphasizing low-density residential tourism. The fact that few tangible initiatives have so far been taken in the direction of ecotourism is not problematic, since careful planning is advisable given the risks inherent in any form of tourism, and given existing and potential problems which could threaten its viability. A Montserrat Heritage Trail network is proposed as the centrepiece of this ecotourism product, while various marketing and institutional initiatives are recommended.     

Farm tourism in Europe

Farm tourism in Europe is long established, but recently its importance has increased, both as a tourism resource and as a source of revenue for the farming community. In 1982 the UN Economic Commission for Europe and the FAO held a symposium to study the effects of tourism on agriculture and the possibilities for integrating the two for the development of rural areas. This article, based on the papers given at the symposium, provides an international overview of farm tourism in Europe.