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Inbound Tourism And Economic Growth: A Review Of Theory And Empirics

In: Handbook of Tourism Economics Analysis, New Applications and Case Studies

Author

Listed:
  • Mondher Sahli

    (Victoria University of Wellington, New Zealand and Ecole Hôteliére de Lausanne, Switzerland)

  • Simon Carey

    (New Zealand Treasury, New Zealand)

Abstract

This chapter examines the existing studies of the relationship between inbound tourism and economic growth. After a brief discussion of general economic growth theory and the reasons why a positive causal relationship may exist between export sectors and economic growth, it then delves into the theoretical basis for an inbound tourism-led growth relationship. Following this, the relatively new empirical literature on the causal relationship between tourism and growth is examined in detail. Both theoretical and empirical evidence to date suggest that there is good reason to believe that inbound tourism promotion can lead to increased economic growth, but the literature is still relatively narrow. Deeper research into the specific mechanisms behind this relationship is needed to inform our understanding of the true growth impacts of export tourism expansion.

Suggested Citation

  • Mondher Sahli & Simon Carey, 2013. "Inbound Tourism And Economic Growth: A Review Of Theory And Empirics," World Scientific Book Chapters, in: Clement A Tisdell (ed.), Handbook of Tourism Economics Analysis, New Applications and Case Studies, chapter 27, pages 619-641, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814327084_0027
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    Citations

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    Cited by:

    1. Nisar Ahmad & Angeliki N. Menegaki & Saeed Al‐Muharrami, 2020. "Systematic Literature Review Of Tourism Growth Nexus: An Overview Of The Literature And A Content Analysis Of 100 Most Influential Papers," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1068-1110, December.
    2. Portella-Carbó, Ferran & Pérez-Montiel, Jose & Ozcelebi, Oguzhan, 2023. "Tourism-led economic growth across the business cycle: Evidence from Europe (1995–2021)," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1241-1253.
    3. Yingying Hu, 2022. "Where Have Carbon Emissions Gone? Evidence of Inbound Tourism in China," Sustainability, MDPI, vol. 14(18), pages 1-20, September.

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