Measuring the Impact of Tourism on Economic Growth
Proceedings of GEOTOUR 2006 Conference, 7-8 October 2006, Kosice, Slovakia, pp. 21-30
18 Pages Posted: 5 Jun 2009
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Measuring the Impact of Tourism on Economic Growth
Measuring the Impact of Tourism on Economic Growth
Date Written: July 4, 2006
Abstract
The paper presents a methodology for measuring the contribution of tourism to an economy’s growth, which is tested with data for Cyprus, Greece and Spain. We use the growth of real GDP per capita as a measure of economic growth and disaggregate it into economic growth generated by tourism and generated by other industries. We argue that current methodologies examine only the relationship between tourism development (measured by different statistics) and economic growth but do not state how much of the economic growth a consequence of tourism development is. The methodology proposed in this research promises to more adequately gauge the impact of tourism on economic growth than other methodologies.
Keywords: tourism, economic growth, economic impacts of tourism, Cyprus, Greece, Spain
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