Journal
SERVICE INDUSTRIES JOURNAL
Volume 31, Issue 10, Pages 1567-1572Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/02642069.2010.485636
Keywords
tourism; economic growth; entrepreneurship; political stability
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The main goal of this paper is to determine whether tourism activity stimulates economic growth. The study indicates the main variables affecting tourism activity and shows a feedback effect between income and tourism. Findings indicate that tourism not only supplies necessary funds to finance firms' activities, but also stimulates the local firms' productivity and creates new job opportunities that increase the country's welfare. Variables that have important effects on tourism activity, such as entrepreneurship and prices have also been considered.
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