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Tourism Growth Versus Economic Development: An Analysis by Multivariate Techniques

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Quantitative Methods in Tourism Economics

Abstract

The debate about the role of tourism as economic development tool is not new, although in recent years, there have been interesting contributions to it. Many institutions have highlighted the importance of tourism as an engine of social transformation and tool for promoting economic development and growth potential, to the point that tourism is expected to generate over a horizon of no more than ten years 11.3 % of world GDP and 8.3% of employment. The economic literature has been agreeing with these statements, although there is growing consensus about the error of accepting this statement with absolute. The aim of this paper is twofold. On the one hand, it is to determine whether there is a relationship between the growth of tourism in a country and its level of economic development, and if so, with which sign, and on the other, to identify the factors that favour or hinder this relationship. The analysis was performed at a country scale using canonical correspondence analysis. This technique allows one to determine whether or not there exists a relationship (and in which sense) between two multidimensional variables – in this case, the growth of tourism and economic development.

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Notes

  1. 1.

    The ST-EP program aims to “reorient and encourage sustainable tourism socially, economically, and ecologically to convert it into a basic tool for eliminating poverty in the poorest countries in the world, and particularly in LDCs, providing development opportunities and employment to all those who live on less than $1 a day”. More information about this program can be found at www.unwto.org/step (accessed 15 June 2010).

  2. 2.

    The first publication, of 2002, entitled “Tourism and alleviation of poverty”, is a general analysis based on examples from four countries on the contribution of tourism in the struggle against poverty in underdeveloped countries and the least developed countries (LDCs). The second publication, of 2004, was entitled “Tourism and alleviation of poverty: Recommendations for action”. In 2005, the third was published, entitled “Tourism, microcredits, and reduction of poverty”. A fourth publication appeared in 2006, under the title “Reduction of poverty through tourism: A compilation of best practices”.

  3. 3.

    See UNCTAD (2007).

  4. 4.

    What is really measured is a country’s economic growth generated by tourism, which is what we term in the present article “tourism growth”.

  5. 5.

    http://www.wttc.org/eng/Tourism_Research/Tourism_Impact_Data_and_Forecast_Tool/index.php (accessed 15 June 2010).

  6. 6.

    http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,contentMDK:20535285~menuPK:1192694~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html (accessed 15 June 2010).

  7. 7.

    The countries with inefficient tourism are Armenia, Azerbaijan, Dominican Republic, Moldova, Paraguay, and Sri Lanka.

  8. 8.

    The countries with efficient tourism are Indonesia, Kenya, Republic of Korea, Kyrgyz Republic, Mauritius, Senegal, South Africa, Vietnam, and Zambia.

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Correspondence to Marcelino Sánchez-Rivero .

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Appendix A.1 Classification of the countries

Appendix A.1 Classification of the countries

Group 1

Group 2

Group 3

 

Countries of strong economic development

Countries of medium economic development

Countries of weak economic development

Luxembourg

Mongolia

Bolivia

Countries of strong tourism growth

Cambodia

China

United Arab Emirates

Belgium

Japan

India

Ireland

Switzerland

Nepal

Indonesia

Norway

Madagascar

Costa Rica

Kazakhstan

Qatar

Malaysia

Mozambique

Korea, Rep.

Saudi Arabia

Brazil

Dominican Republic

Kyrgyz Republic

Greece

Algeria

Ukraine

Nigeria

Czech Republic

Germany

China

Pakistan

Hungary

Barbados

Ecuador

Russian Federation

South Africa

Italy

Honduras

Burkina Faso

Ukraine

Austria

Uganda

Russian Federation

Vietnam

Netherlands

Bulgaria

Gambia, The

Kuwait

Libya

Benin

Singapore

Tunisia

India

Countries of medium tourism growth

Colombia

Estonia

El Salvador

Indonesia

Philippines

Dominican Republic

Spain

Bangladesh

Pakistan

Costa Rica

Lithuania

Venezuela

Paraguay

Chile

Denmark

Morocco

Guyana

Azerbaijan

Iceland

Albania

Cambodia

Ecuador

Oman

Cyprus

Kazakhstan

Kenya

Turkey

Burundi

Vietnam

Senegal

Latvia

Jamaica

Nigeria

Armenia

Mauritius

New Zealand

Argentina

Senegal

Namibia

Australia

Egypt

Zambia

Zambia

United Kingdom

Botswana

Namibia

Poland

Nicaragua

Azerbaijan

Slovenia

Romania

Armenia

Countries of weak tourism growth

Gambia, The

Slovak Republic

Israel

Sri Lanka

Sri Lanka

Bahrain

Tanzania

South Africa

Burkina Faso

United States

Jordan

Kenya

Mali

Finland

Uruguay

Philippines

Benin

Malta

Panama

Suriname

Chad

France

Ethiopia

Moldova

Suriname

Canada

Korea, Rep.

Kyrgyz Republic

Cameroon

Croatia

Thailand

Cameroon

Guyana

Portugal

Peru

Mali

Lesotho

Sweden

Colombia

Lesotho

Moldova

Mexico

Syria

Mauritius

Paraguay

Canada

Guatemala

Chile

Chad

  1. Source: The authors

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Sánchez-Rivero, M., Pulido-Fernández, J.I., Cárdenas-García, P.J. (2013). Tourism Growth Versus Economic Development: An Analysis by Multivariate Techniques. In: Matias, Á., Nijkamp, P., Sarmento, M. (eds) Quantitative Methods in Tourism Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2879-5_13

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