Tourism and welfare in Sub-Saharan Africa: a theoretical analysis

Using the standard theoretical model of trade, we study thewelfare effects of tourism for developing countries with particularreference to Sub-Saharan Africa. We show that tourism can reducewelfare for trade regimes dominated by export taxes or importsubsidies. In addition, we argue that tourist immiserisationis possible for Sub-Saharan Africa. Finally, we show that directforeign investment in tourism, is for the most part, beneficial.