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Tourism and economic development: A literature review to highlight main empirical findings

Author

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  • Alejandro Alcalá-Ordóñez
  • Verónica Segarra

Abstract

After the publication of a significant number of papers analyzing the tourism-led growth hypothesis (TLGH), a new line has arisen within the scientific literature, which attempts to analyze the capacity of tourism as an instrument of economic development, given that this concept has been widely linked to both economic aspects and socio-economic conditions of the resident population. Because of the new line mentioned, this work reviews 57 published articles (from 2005 to 2022) that examined the relationship between tourism and economic development. Specifically, the empirical results of the reviewed works suggest that tourism has positive effects on socio-economic development, acting as a tool that reduces poverty, lessens inequalities, and improves the living conditions of the resident population. In line with this, papers reviewed suggests different policy recommendations as promote access to financing, trade, campaigns for tourism or major relevance of public and private sector investments.

Suggested Citation

  • Alejandro Alcalá-Ordóñez & Verónica Segarra, 2025. "Tourism and economic development: A literature review to highlight main empirical findings," Tourism Economics, , vol. 31(1), pages 76-103, February.
    • Handle: RePEc:sae:toueco:v:31:y:2025:i:1:p:76-103
    DOI: 10.1177/13548166231219638
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