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The Role of Tourism in Poverty Reduction: An Empirical Assessment

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  • Robertico Croes

    (Tourism, Events and Attractions, Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Blvd, Orlando, FL 32819, USA)

Abstract

This paper assesses how tourism affects absolute poverty beyond its effects on growth in two developing countries. In particular, the author explores whether tourism spending leads to a decline in the proportion of people below the poverty line. An error correction model is applied to estimate the relationship between poverty and tourism spending. The results reveal that tourism does matter for the poor, but that it does not appear to have systematic effects, and that tourism development matters most for the poor at the lower levels of economic development. The findings from the two developing country case studies show differing impacts of tourism development, and thus the policy implications differ for each case.

Suggested Citation

  • Robertico Croes, 2014. "The Role of Tourism in Poverty Reduction: An Empirical Assessment," Tourism Economics, , vol. 20(2), pages 207-226, April.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:2:p:207-226
    DOI: 10.5367/te.2013.0275
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    References listed on IDEAS

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