benefits of tourism on the economy

• Get Connected
• globalEDGE Blog

The Importance of Tourism on Economies and Businesses

Published: 3/26/2019 12:21:08 PM

Image Source

Tourism is vital for the success of many economies around the world. There are several benefits of tourism on host destinations.  Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.

The number of jobs created by tourism in many different areas is significant. These jobs are not only a part of the tourism sector but may also include the agricultural sector, communication sector, health sector, and the educational sector. Many tourists travel to experience the hosting destination’s culture, different traditions, and gastronomy. This is very profitable to local restaurants, shopping centers, and stores. Melbourne, Australia ’s population is greatly affected by tourism. It has a population of around 4 million people and around 22,000 citizens are employed by the tourism sector only.

Governments that rely on tourism for a big percentage of their revenue invest a lot in the infrastructure of the country . They want more and more tourists to visit their country which means that safe and advanced facilities are necessary. This leads to new roads and highways, developed parks, improved public spaces, new airports, and possibly better schools and hospitals. Safe and innovative infrastructures allow for a smooth flow of goods and services. Moreover, local people experience an opportunity for economic and educational growth.

Tourism creates a cultural exchange between tourists and local citizens. Exhibitions, conferences, and events usually attract foreigners. Organizing authorities usually gain profits from registration fees, gift sales, exhibition spaces, and sales of media copyright. Furthermore, foreign tourists bring diversity and cultural enrichment to the hosting country.

Tourism is a great opportunity for foreigners to learn about a new culture, but it also creates many opportunities for local citizens . It allows young entrepreneurs to establish new products and services that would not be sustainable on the local population of residents alone. Moreover, residents experience the benefits that come with tourism occurring in their own country.

To learn about the countries earning the most from international tourist arrivals, click on the link below!

Countries Earning the Most from International Tourism

Share this article

Economic Importance of Tourism

• First Online: 13 September 2022

Cite this chapter

• Christian J. Jäggi 2  

377 Accesses

Originally a luxury item and strongly dependent on income, tourism became increasingly a mass market object in the 1990s and increasingly independent of the respective income. Tourism developed into one of the most important economic sectors, with a share of world social production of more than 10%. Tourism generates income, creates jobs and contributes to the development of infrastructure, but it also burdens the environment, damages the climate and partly increases social inequality.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime
• Available as PDF
• Read on any device
• Instant download
• Own it forever
• Available as EPUB and PDF
• Compact, lightweight edition
• Dispatched in 3 to 5 business days
• Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

https://de.wikipedia.org/wiki/Kreuzfahrt (accessed 10.07.2021). For comparison: Statista had estimated the number of cruise tourists for the year 2020 before the Corona crisis at 32 million travelers ( https://de.statista.com/statistik/daten/studie/285194/umfrage/passagiere-auf-dem-weltweiten-kreuzfahrtmarkt/ accessed 10.07.2021).

For the ecological footprint, see also footnote 2 (Chap.  4 ).

The secondary or second labour market includes all non-employment or reduced-wage, comparable or similar activities, which are practically always organised by an institutional provider and are carried out outside one’s own four walls in most cases. The state-subsidised second labour market is particularly well-known in the general public, but in the strict sense it is not a market, but includes subsidised employment opportunities and measures (based on https://de.wikipedia.org/wiki/Zweiter_Arbeitsmarkt Accessed 09.01.2021).

The Migros Group is the second largest retailer in Switzerland after Coop.

The number of people directly employed in tourism was 16.1% in mountain regions of Switzerland in 2015, and those indirectly employed in tourism 10.7% (measured in full-time equivalents), compared with 4.5% and 2.7% in large cities; see Fig.  3.9 . The share of tourism in gross value added was 20.8% in mountain regions in 2015 (of which 13.1% directly and 7.7% indirectly), 4.7% in large cities (of which 3.1% directly and 1.6% indirectly) and 3.2% in other areas (1.9% directly and 1.3% indirectly) (Zenhäusern and Kadelbach 2018 , p. 11).

The Asia-Pacific region (APAC) includes a large part of Southeast Asia, Australia and Oceania. Sometimes South Asia is also included, even though India and its neighboring countries do not border the Pacific, but rather the Indian Ocean. Countries included in APAC also include Far East Russia (North Pacific) as well as the countries of North and South America that lie on the east coast of the Pacific Ocean ( https://de.wikipedia.org/wiki/Asien-Pazifik ).

See the Chap. “ 4.9 Pro-Poor-Tourism”.

Benz, Matthias 2020: Starker Sommer in den Schweizer Bergen. In: Neue Zürcher Zeitung vom 31.8.2020. 15.

Google Scholar  

Clancy, Michael 2011: Global Commodity Chains and Tourism. Past Research and Future Directions. In: Mosedale, Jan (Hrsg.): Political Economy of Tourism. A Critical Perspective. London/New York: Routledge. 75 ff.

Cook, Roy A./Hsu, Cathy H. C./Taylor, Lorraine L. 2018: Tourism. The Business of Hospitality and Travel. Sixth Edition. London/New York: Pearson.

Cooper, Chris 2012: Essentials of Tourism. Harlow: Pearson Education.

Descamps, Philipe 2020: Luftfahrt in Turbulenzen. In: Le Monde Diplomatique (deutsche Ausgabe Schweiz). Juli 2020. 10 f.

Dorsch, Monique 2016: Verkehr und Tourismus. Plauen: M&S-Verlag.

Elshaer, Abdallah M./Marzouk, Asmaa M. 2020: Labor in the Tourism and Hospitality Industry. Skills, Ethics, Issues, and Rights. Palm Bay/USA: Apple Academic Press AAP.

FIF 1995: Forschungsinstitut für Freizeit und Tourismus. Universität Bern: Moorschutz und Tourismus. Bern.

Frey, Bruno S. 2020: Venedig ist überall. Vom Übertourismus zum Neuen Original. Wiesbaden: Springer.

Freyer, Walter 2011: Tourismus. Einführung in die Fremdenverkehrsökonomie. 10., überarbeitete und aktualisierte Auflage. München: Oldenbourg Verlag.

Freyer, Walter 2015: Tourismus. Einführung in die Fremdenverkehrsökonomie. 11., überarbeitete und aktualisierte Auflage. Oldenbourg: De Gruyter.

Gross, Matilde S. 2017: Gesundheitstourismus. Konstanz: UK Verlagsgesellschaft.

Hall, C. Michael 2013: Financial Crises in Tourism and Beyond. Connecting Economic, Resource and Environmental Securities. In: Visser, Gustav/Ferreira, Sanette (Hrsg.): Tourism and Crisis. London/New York: Routledge. 12 ff.

Holloway, J.C./Taylor, N. 2006: The Business of Tourism. Harlow: Pearson Education.

Hopkins, Laura/Labonté, Ronald/Runnels, Vivien/Packer, Corinne 2018: Medical Tourism Today. What is the State of Existing Knowledge? In: Timothy, Dallen J. Hrsg.): Tourism Planning. Critical Concepts in Tourism. Volume IV: Contemporary Trends and Future Directions. London/New York: Routledge. 243 ff.

IATA 2021: IATA Travel Pass Initiative. https://www.iata.org/en/programs/passenger/travel-pass/ (Zugriff 15.3.2021).

Imwinkelried, Daniel 2020: Die Schweizer kommen – in diesem Jahr. In: Neue Zürcher Zeitung vom 13.6.2020. 10.

Jordan, Gabriela 2021: Luxus-Schiffe werben mit „coronafrei“. In: Luzerner Zeitung vom 23.1.2021. 15.

Jordan, Gabriela/Vontobel, Niklaus 2020: Fast jeder Fünfte wird vor die Tür gestellt. In: Luzerner Zeitung vom 26.6.2020. 3.

Kaspar, Claude 1991: Die Tourismuslehre im Grundriss. 4., überarbeitete und ergänzte Auflage. St. Galler Beiträge zum Tourismus und zur Verkehrswirtschaft. Reihe Tourismus. Band 1. Bern/Stuttgart: Paul Haupt.

Kirstges, Torsten H. 2020: Tourismus in der Kritik. Klimaschädigender Overtourism statt sauberer Industrie? München: UVK Verlag.

Letzner, Volker 2014: Tourismusökonomie. Volkswirtschaftliche Aspekte rund ums Reisen. 2., überarbeitete und erweiterte Auflage. Oldenbourg: De Gruyter.

Lüthi, André 2020: „Diejenigen, die durchhalten, müssen die Preise erhöhen“. Gespräch mit André Lüthi, CEO der Globetrotter Group, mit Susanna Müller. In: Neue Zürcher Zeitung vom 31.12.2020. 49.

Maxwell, Keely 2012: Tourism as Transaction. Commerce and Heritage on the Inca Trail. In: Lyon, Sarah/Wells, E. Christian (Hrsg.): Global Tourism. Cultural Heritage and Economic Encounters. Lanham/New York/Toronto/Plymouth: Altamira Press. 105 ff.

Mayer, Marius/Vogt, Luisa 2016: Bestimmungsfaktoren des Ausgabeverhaltens von Naturtouristen in den Alpen – das Fallbeispiel Simmental und Diemtigtal, Schweiz. In: Mayer, Marius/Job, Hubert (Hrsg.): Naturtourismus – Chancen und Herausforderungen. Studien zur Freizeit und Tourismusforschung. Band 12. Mannheim: Verlag Metagis-Systems. 99 ff.

Merkel, Janet 2018: Coworking: das Arbeitsmodell der Zukunft? In: Pechlaner, Harald/Innerhofer, Elisa (Hrsg.): Temporäre Konzepte. Coworking und Coliving als Perspektive für die Regionalentwicklung. Stuttgart: W. Kohlhammer. 33 ff.

Müller, Hansruedi 2011: Tourismuspolitik. Wege zu einer nachhaltigen Entwicklung. Glarus/Chur: Rüegger.

Müller, André 2021: Das Ökosystem Flughafen Zürich steckt weiter im Dauerstress. In: Neue Zürcher Zeitung vom 3.3.2021. 1.

Müller, Ute/Wysling, Andres/Pabst, Volker/Benz, Matthias 2021: Sind die Mittelmeerländer bereit? In: Neue Zürcher Zeitung vom 19.6.2021. 24 f.

Muntschick, Verena 2019: Überblick: Kontext, Kontrast, Konsequenzen. In: Zukunftsinstitut. Trendstudie: Der neue Resonanz-Tourismus. Herzlich willkommen. Frankfurt/Main: Zukunftsinstitut. 10 ff.

Nagos, Pythagoras 2020: „Die Kreuzfahrtgesellschaften werden sich kurzfristig einer Schadenskontrolle zuwenden“. Interview mit Pythagoras Nagos, dem ehemaligen Managing Director von MSC Cruises in der Schweiz. Von Jean-Claude Raemy. In: Travelnews vom 28.5.2020. https://www.travelnews.ch/cruise/16100-die-kreuzfahrtgesellschaften-werden-sich-kurzfristig-einer-schadenskontrolle-zuwenden.html (Zugriff 25.4.2021).

Newsome, David/Moore, Susan A./Dowling, Ross K. 2013: Natural Area Tourism. Ecology, Impacts and Management. 2 nd Edition. Bristol/Buffalo/Toronto: Channel View Publications.

Petrin, Susanna 2021: Dinieren bei Minusgraden. In: Neue Zürcher Zeitung vom 8.2.2021. 6.

Pillmayer, Markus/Scherle, Nicolai 2018: Krisen und Krisenmanagement im Tourismus. Eine konzeptionelle Einführung. In: Hahn, Silke/Neuss, Zeljka (Hrsg.): Krisenkommunikation in Tourismusorganisationen. Grundlagen, Praxis, Perspektiven. Wiesbaden: Springer VS. 3 ff.

Schmutz, Christoph/Müller, Ute/Wysling, Andres/Fischer, Thomas/Pabst, Volker/Belz, Nina 2020: Ferienorte versuchen den Sommer zu retten. In: Neue Zürcher Zeitung vom 20.5.2020. 18 f.

Schulz, Axel 2014: Modul B: Grundlagen Verkehr im Tourismus. Fluggesellschaften, Kreuzfahrten, Bahnen, Busse und Mietwagen. Kapitel 3: Kreuzfahrten. In: Schulz, Axel/Berg, Waldemar/Gardini, Marco A./Kirstges, Torsten/Eisenstein, Bernd: Grundlagen des Tourismus. Lehrbuch in 5 Modulen. 2., überarbeitete Auflage. München: Oldenbourg Verlag. 49 ff.

Statista 2021: Anzahl der Kreuzfahrtpassagiere aus Deutschland von 2004 bis 2020. https://de.statista.com/statistik/daten/studie/180388/umfrage/passagiere-von-kreuzfahrten-aus-deutschland/ (Zugriff 25.4.2021).

Strasdas, Wolfgang 2017: Einführung Nachhaltiger Tourismus. In: Rein, Hartmut/Strasdas, Wolfgang (Hrsg.): Nachhaltiger Tourismus. Einführung. 2., überarbeitete Auflage. Konstanz: UVK Verlagsgesellschaft. 13 ff.

Tageskarte 2021: 5. Januar 2021. https://www.tageskarte.io/tourismus/detail/asien-pazifik-region-dominiert-henley-passport-index-deutschland-auf-platz-3.html (Zugriff 24.6.2021).

Tietz, Bruno 1980: Handbuch der Tourismuswirtschaft. München: Verlag Moderne Industrie.

Vontobel, Niklaus 2021: Sommer der Inflation. In: Luzerner Zeitung vom 12.6.2021. 14.

Wattanakuljarus, Anan/Coxhead, Ian 2013: Is Tourism-based Development Good for the Poor? A General Equilibrium Analysis for Thailand. 182 ff. In: Dwyer, Larry/Seetaram, Neelu (Hrsg.): Recent Developments in the Economics of Tourism. Volume II. Tourism, Trade, Growth and Welfare. Cheltenham, UK/Northampton, MA: Edward Elgar. Ursprünglich in: Journal of Policy Modelling. 30 (2008). 929 ff.

Zenhäusern, Robert/Kadelbach, Thomas 2016: 12 Thesen zur Zukunft des Tourismus in den Berggebieten. Bern: Schweizer Tourismusverband/Schweizerische Arbeitsgemeinschaft für die Berggebiete. Juli 2018.

Zumbrunnen, Fabrice 2021: „Wir setzen vermehrt auf kleine Läden“. Gespräch mit Migros-Chef Fabrice Zumbrunnen von Natalie Gratwohl und Andrea Martel. In: Neue Zürcher Zeitung vom 31.3.2021. 25.

Download references

Author information

Authors and affiliations.

Meggen, Switzerland

Christian J. Jäggi

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Christian J. Jäggi .

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature

About this chapter

Jäggi, C.J. (2022). Economic Importance of Tourism. In: Tourism before, during and after Corona. Springer, Wiesbaden. https://doi.org/10.1007/978-3-658-39182-9_3

Download citation

DOI : https://doi.org/10.1007/978-3-658-39182-9_3

Published : 13 September 2022

Publisher Name : Springer, Wiesbaden

Print ISBN : 978-3-658-39181-2

Online ISBN : 978-3-658-39182-9

eBook Packages : Economics and Finance Economics and Finance (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

• Understanding Poverty
• Competitiveness

Tourism and Competitiveness

• Publications

The tourism sector provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women, who comprise the majority of the tourism sector’s workforce. Before the COVID-19 pandemic, tourism was the world’s largest service sector—providing one in ten jobs worldwide,  almost seven percent of all international trade and  25 percent of the world’s service exports —a critical foreign exchange generator.  In 2019 the sector was valued at more than US$9 trillion and accounted for 10.4 percent of global GDP.

Tourism offers opportunities for economic diversification and market-creation. When effectively managed, its deep local value chains can expand demand for existing and new products and services that directly and positively impact the poor and rural/isolated communities. The sector can also be a force for biodiversity conservation, heritage protection, and climate-friendly livelihoods, making up a key pillar of the blue/green economy. This potential is also associated with social and environmental risks, which need to be managed and mitigated to maximize the sector’s net-positive benefits.

The impact of the COVID-19 pandemic has been devastating for tourism service providers, with a loss of 20 percent of all tourism jobs (62 million), and US$1.3 trillion in export revenue, leading to a reduction of 50 percent of its  contribution to GDP  in 2020 alone. The collapse of demand has severely impacted the livelihoods of tourism-dependent communities, small businesses and women-run enterprises. It has also reduced government tax revenues and constrained the availability of resources for destination management and site conservation.

Naturalist local guide with group of tourist in Cuyabeno Wildlife Reserve Ecuador. Photo: Ammit Jack/Shutterstock

Tourism and Competitiveness Strategic Pillars

Our solutions are integrated across the following areas:

• Competitive and Productive Tourism Markets. We work with government and private sector stakeholders to foster competitive tourism markets that create productive jobs, improve visitor expenditure and impact, and are supportive of high-growth, innovative firms. To do so we offer guidance on firm and destination level recovery, policy and regulatory reforms, demand diversification, investment promotion and market access. 
• Blue, Green and Resilient Tourism Economies. We support economic diversification to sustain natural capital and tourism assets, prepare for external and climate-related shocks, and be sustainably managed through strong policy, coordination, and governance improvements. To do so we offer support to align the tourism enabling and policy environment towards sustainability, while improving tourism destination and site planning, development, and management. We work with governments to enhance the sector’s resilience and to foster the development of innovative sustainable financing instruments.
• Inclusive Value Chains. We work with client governments and intermediaries to support Small and Medium sized Enterprises (SMEs), and strengthen value chains that provide equitable livelihoods for communities, women, youth, minorities, and local businesses. 

The successful design and implementation of reforms in the tourism space requires the combined effort of diverse line ministries and agencies, and an understanding of the impact of digital technologies in the industry. Accordingly, our teams support cross-cutting issues of tourism governance and coordination, digital innovation and the use and application of data throughout the three focus areas of work.

Tourism and Competitiveness Theory of Change 

Examples of our projects:

• In Indonesia , a US$955m loan is supporting the Government’s Integrated Infrastructure Development for National Tourism Strategic Areas Project. This project is designed to improve the quality of, and access to, tourism-relevant basic infrastructure and services, strengthen local economy linkages to tourism, and attract private investment in selected tourism destinations. In its initial phases, the project has supported detailed market and demand analyses needed to justify significant public investment, mobilized integrated tourism destination masterplans for each new destination and established essential coordination mechanisms at the national level and at all seventeen of the Project’s participating districts and cities.
• In Madagascar , a series of projects totaling US$450m in lending and IFC Technical Assistance have contributed to the sustainable growth of the tourism sector by enhancing access to enabling infrastructure and services in target regions. Activities under the project focused on providing support to SMEs, capacity building to institutions, and promoting investment and enabling environment reforms. They resulted in the creation of more than 10,000 jobs and the registration of more than 30,000 businesses. As a result of COVID-19, the project provided emergency support both to government institutions (i.e., Ministry of Tourism) and other organizations such as the National Tourism Promotion Board to plan, strategize and implement initiatives to address effects of the pandemic and support the sector’s gradual relaunch, as well as to directly support tourism companies and workers groups most affected by the crisis. 
• In Sierra Leone , an Economic Diversification Project has a strong focus on sustainable tourism development.  The project is contributing significantly to the COVID-19 recovery, with its focus on the creation of six new tourism destinations, attracting new private investment, and building the capacity of government ministries to successfully manage and market their tourism assets.  This project aims to contribute to the development of more circular economy tourism business models, and support the growth of women- run tourism businesses.  
• Through the Rebuilding Tourism Competitiveness: Tourism Response, Recovery and Resilience to the COVID-19 Crisis initiative and the Tourism for Development Learning Series , we held webinars, published insights and guidance notes as well as formed new partnerships with Organization of Eastern Caribbean States, United Nations Environment Program, United Nations World Tourism Organization, and World Travel and Tourism Council to exchange knowledge on managing tourism throughout the pandemic, planning for recovery and building back better. The initiative’s key Policy Note has been downloaded more than 20,000 times and has been used to inform recovery initiatives in over 30 countries across 6 regions.
• The Global Aviation Dashboard  is a platform that visualizes real-time changes in global flight movements, allowing users to generate 2D & 3D visualizations, charts, graphs, and tables; and ranking animations for: flight volume, seat volume, and available seat kilometers.  Data is available for domestic, intra-regional, and inter-regional routes across all regions, countries, airports, and airlines on a daily, weekly, or monthly basis from January 2020 until today. The dashboard has been used to track the status and recovery of global travel and inform policy and operational actions.

Traditional Samburu women in Kenya. Photo: hecke61/Shutterstock.

Featured Data

We-Fi WeTour Women in Tourism Enterprise Surveys (2019)

• Sierra Leone  |  Ghana

Featured Reports 

• Destination Management Handbook: A Guide to the Planning and Implementation of Destination Management  (2023)
• Blue Tourism in Islands and Small Tourism-Dependent Coastal States : Tools and Recovery Strategies (2022)
• Resilient Tourism: Competitiveness in the Face of Disasters  (2020)
• Tourism and the Sharing Economy: Policy and Potential of Sustainable Peer-to-Peer Accommodation  (2018)
• Supporting Sustainable Livelihoods through Wildlife Tourism  (2018)
• The Voice of Travelers: Leveraging User-Generated Content for Tourism Development  (2018)
• Women and Tourism: Designing for Inclusion  (2017)
• Twenty Reasons Sustainable Tourism Counts for Development  (2017)
• An introduction to tourism concessioning:14 characteristics of successful programs.  The World Bank, 2016)
• Getting financed: 9 tips for community joint ventures in tourism . World Wildlife Fund (WWF) and World Bank, (2015)
• Global investment promotion best practices: Winning tourism investment” Investment Climate  (2013)

Country-Specific

• COVID-19 and Tourism in South Asia: Opportunities for Sustainable Regional Outcomes  (2020)
• Demand Analysis for Tourism in African Local Communities  (2018)
• Tourism in Africa: Harnessing Tourism for Growth and Improved Livelihoods . Africa Development Forum (2014)

COVID-19 Response

• Expecting the Unexpected : Tools and Policy Considerations to Support the Recovery and Resilience of the Tourism Sector (2022)
• Rebuilding Tourism Competitiveness. Tourism response, recovery and resilience to the COVID-19 crisis  (2020)
• COVID-19 and Tourism in South Asia Opportunities for Sustainable Regional Outcomes  (2020)  
• WBG support for tourism clients and destinations during the COVID-19 crisis  (2020)
• Tourism for Development: Tourism Diagnostic Toolkit  (2019)
• Tourism Theory of Change  (2018)

Country   -Specific

• COVID Impact Mitigation Survey Results  (South Africa) (2020)
• COVID Preparedness for Reopening Survey Results  (South Africa) (2020)
• COVID Study  (Fiji) (2020) with   IFC

Featured Blogs

• Louise Twining-Ward and Alba Suris , Bridging the Tourism Data Divide: New Tools for Policymaking
• Fiona Stewart, Samantha Power & Shaun Mann ,  Harnessing the power of capital markets to conserve and restore global biodiversity through “Natural Asset Companies”   | October 12 th  2021
• Mari Elka Pangestu ,  Tourism in the post-COVID world: Three steps to build better forward  | April 30 th  2021
• Hartwig Schafer ,  Regional collaboration can help South Asian nations rebuild and strengthen tourism industry  | July 23 rd  2020
• Caroline Freund ,  We can’t travel, but we can take measures to preserve jobs in the tourism industry  | March 20 th  2020

Featured Webinars

• Destination Management for Resilient Growth . This webinar looks at emerging destinations at the local level to examine the opportunities, examples, and best tools available. Destination Management Handbook
• Launch of the Future of Pacific Tourism. This webinar goes through the results of the new Future of Pacific Tourism report. It was launched by FCI Regional and Global Managers with Discussants from the Asian Development Bank and Intrepid Group.
• Circular Economy and Tourism . This webinar discusses how new and circular business models are needed to change the way tourism operates and enable businesses and destinations to be sustainable.
• Closing the Gap: Gender in Projects and Analytics .  The purpose of this webinar is to raise awareness on integrating gender considerations into projects and provide guidelines for future project design in various sectoral areas.
• WTO Tourism Resilience: Building forward Better. High-level panelists from Sri Lanka, Costa Rica, Jordan and Kenya discuss how donors, governments and the private sector can work together most effectively to rebuild the tourism industry and improve its resilience for the future.
• Tourism Watch
• Tourism Factsheets
• [email protected]

Launch of Blue Tourism Resource Portal

21 reasons why tourism is important – the importance of tourism

Tourism is important, more important than most people realise in fact!

The importance of tourism is demonstrated throughout the world. From the economic advantages that tourism brings to host communities to the enjoyment that tourism brings to the tourists themselves, there is no disputing the value of this industry.

The importance of tourism can be viewed from two perspectives: the tourism industry and the tourist. In this article I will explain how both the industry and the tourist benefit from the tourism industry and why it is so important on a global scale.

What is the importance of tourism?

Enhanced quality of life, ability to broaden way of thinking, educational value, ability to ‘escape’, rest and relaxation, enhanced wellbeing, who are tourism industry stakeholders, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, the importance of tourism: political gains, why tourism is important: to conclude, the importance of tourism: further reading.

When many people think about the tourism industry they visualise only the front-line workers- the Holiday Representative, the Waiter, the Diving Instructor. But in reality, the tourism industry stretches much, much further than this.

As demonstrated in the infographic below, tourism is important in many different ways. The tourism industry is closely interconnected with a number of global industries and sectors ranging from trade to ecological conservation.

Why tourism is important to the tourist

When we discuss the importance of tourism it is often somewhat one-sided, taking into consideration predominantly those working in the industry and their connections.

However, the tourist is just as important, as without them there would be no tourism!

Below are just a few examples of the importance of tourism to the tourist:

Taking a holiday can greatly benefit a person’s quality of life. While different people have very different ideas of what makes a good holiday (there are more than 150 types of tourism after all!), a holiday does have the potential to enhance quality of life.

Travel is known to help broaden a person’s way of thinking. Travel introduces you to new experiences, new cultures and new ways of life.

Many people claim thatchy ‘find themselves’ while travelling.

One reason why tourism is important is education.The importance of tourism can be attributed to the educational value that it provides. Travellers and tourists can learn many things while undertaking a tourist experience, from tasting authentic local dishes to learning about the exotic animals that they may encounter.

Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can help you to relax, which in turn often helps you to be more productive in the workplace and in every day life.

This is another way that the importance of tourism is demonstrated.

Rest and relaxation is very important. Taking time out for yourself helps you to be a happier, healthier person.

Having the opportunity for rest and relaxation in turn helps to enhance wellbeing.

Why tourism is important to stakeholders

There are many reasons why tourism is important to the people involved. There are many people who work either directly or indirectly with the tourism industry and who are therefore described as stakeholders. You can read more about tourism stakeholders and why they are important in this post- Stakeholders in tourism: Who are they and why do they matter?

The benefits of tourism are largely related to said stakeholders in some way or another. Below are some examples of how stakeholders benefit from tourism, organised by economic, social, environmental and political gains; demonstrating the importance of tourism.

The importance of tourism: Economic gains

Perhaps the most cited reason in reference to the importance of tourism is its economic value. Tourism can help economies to bring in money in a number of different ways. Below I have provided some examples of the positive economic impacts of tourism .

The importance of tourism is demonstrated through foreign exchange earnings. 

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up! 

Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro . 

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

The importance of tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated. 

Direct contributions  are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes. 

According to the World Tourism Organisation , the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions  come from goods and services supplied to tourists which are not directly related to the tourism industry. 

There is also the income that is generated through  induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed. 

The importance of tourism can be demonstrated through employment generation.

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers. 

There are two types of employment in the tourism industry: direct and indirect. 

Direct employment  includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few. 

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.

It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

The importance of tourism can be further seen through the contributions to local economies.

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy. 

If  sustainable tourism  is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or  volunteer tourism  projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect. 

Tourism boosts the economy exponentially. This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place. Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.

For some towns, cities and even whole countries, the importance of tourism is greater than for other. In some cases, it is the main source of income. For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.

The importance of tourism: Social gains

The importance of tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Below I will outline some of the social gains from tourism.

It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of tourism.

Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…

Many destinations will make a conserved effort to preserve and protect the local culture. This often contributes to the conservation and  sustainable management  of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. 

The importance of tourism can also be demonstrated through the strengthening of communities.

Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.

The jobs created by tourism can also be a great boost for the local community. Aside from the  economic impacts  created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. 

Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.

The importance of tourism is shown through the provision of social services in the host community.

The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also. 

Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. 

Tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result. 

These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.

Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. 

This may help promote traditions that may have become distant. 

Another reason for the importance of tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage. 

This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful  tourism planning  and sustainable tourism management. 

Tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.

Small villages in far off lands are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population .

The importance of tourism: Environmental gains

Whilst most media coverage involving tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.

Some people think that tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers. 

As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!

Lastly, there is something to be said for the political gains that can be achieved through tourism.

The tourism industry can yield promising opportunities for international collaborations, partnerships and agreements, for example within the EU. This can have positive political impacts on the host country as well as the countries who choose to work with them.

Tourism is a remarkably important industry. As you can see, the tourism industry does not stand alone- it is closely interrelated with many other parts of society. Not only do entire countries often rely on the importance of tourism, but so do individual members of host communities and tourists.

If you are studying travel and tourism and are interested in learning more about the importance of tourism, I recommend you take a look at the following texts:

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

• Open access
• Published: 05 January 2021

The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis

• Haroon Rasool   ORCID: orcid.org/0000-0002-0083-4553 1 ,
• Shafat Maqbool 2 &
• Md. Tarique 1  

Future Business Journal volume  7 , Article number:  1 ( 2021 ) Cite this article

128k Accesses

118 Citations

13 Altmetric

Metrics details

Tourism has become the world’s third-largest export industry after fuels and chemicals, and ahead of food and automotive products. From last few years, there has been a great surge in international tourism, culminates to 7% share of World’s total exports in 2016. To this end, the study attempts to examine the relationship between inbound tourism, financial development and economic growth by using the panel data over the period 1995–2015 for five BRICS (Brazil, Russia, India, China and South Africa) countries. The results of panel ARDL cointegration test indicate that tourism, financial development and economic growth are cointegrated in the long run. Further, the Granger causality analysis demonstrates that the causality between inbound tourism and economic growth is bi-directional, thus validates the ‘feedback-hypothesis’ in BRICS countries. The study suggests that BRICS countries should promote favorable tourism policies to push up the economic growth and in turn economic growth will positively contribute to international tourism.

Introduction

World Tourism Day 2015 was celebrated around the theme ‘One Billion Tourists; One Billion Opportunities’ highlighting the transformative potential of one billion tourists. With more than one billion tourists traveling to an international destination every year, tourism has become a leading economic sector, contributing 9.8% of global GDP and represents 7% of the world’s total exports [ 59 ]. According to the World Tourism Organization, the year 2013 saw more than 1.087 billion Foreign Tourist Arrivals and US $1075 billion foreign tourism receipts. The contribution of travel and tourism to gross domestic product (GDP) is expected to reach 10.8% at the end of 2026 [ 61 ]. Representing more than just economic strength, these figures exemplify the vast potential of tourism, to address some of the world´s most pressing challenges, including socio-economic growth and inclusive development.

Developing countries are emerging as the important players, and increasingly aware of their economic potential. Once essentially excluded from the tourism industry, the developing world has now become its major growth area. These countries majorly rely on tourism for their foreign exchange reserves. For the world’s forty poorest countries, tourism is the second-most important source of foreign exchange after oil [ 37 ].

The BRICS (Brazil, Russia, India, China and South Africa) countries have emerged as a potential bloc in the developing countries which caters the major tourists from developed countries. Tourism becomes major focus at BRICS Xiamen Summit 2017 held in China. These countries have robust growth rate, and are focal destinations for global tourists. During 1990 to 2014, these countries stride from 11% of the world’s GDP to almost 30% [ 17 ]. Among BRICS countries, China is ranked as an important destination followed by Brazil, Russia, India and South Africa [ 60 ].

The importance of inbound tourism has grown exponentially, because of its growing contribution to the economic growth in the long run. It enhances economic growth by augmenting the foreign exchange reserves [ 38 ], stimulating investments in new infrastructure, human capital and increases competition [ 9 ], promoting industrial development [ 34 ], creates jobs and hence to increase income [ 34 ], inbound tourism also generates positive externalities [ 1 , 14 ] and finally, as economy grows, one can argue that growth in GDP could lead to further increase in international tourism [ 11 ].

The tourism-led growth hypothesis (TLGH) proposed by Balaguer and Cantavella-Jorda [ 3 ], states that expansion of international tourism activities exerts economic growth, hence offering a theoretical and empirical link between inbound tourism and economic growth. Theoretically, the TLGH was directly derived from the export-led growth hypothesis (ELGH) that postulates that economic growth can be generated not only by increasing the amount of labor and capital within the economy, but also by expanding exports.

The ‘new growth theory,’ developed by Balassa [ 4 ], suggests that export expansion can trigger economic growth, because it promotes specialization and raises factors productivity by increasing competition, creating positive externalities by advancing the dispersal of specialized information and abilities. Exports also enhance economic growth by increasing the level of investment. International tourism is considered as a non-standard type of export, as it indicates a source of receipts and consumption in situ. Given the difficulties in measuring tourism activity, the economic literature tends to focus on primary and manufactured product exports, hence neglecting this economic sector. Analogous to the ELGH, the TLGH analyses the possible temporal relationship between tourism and economic growth, both in the short and long run. The question is whether tourism activity leads to economic growth or, alternatively, economic expansion drives tourism growth, or indeed a bi-directional relationship exists between the two variables.

To further substantiate the nexus, the study will investigate the plausible linkages between economic growth and international tourism while considering the relative importance of financial development in the context of BRICS nations. Financial markets are considered a key factor in producing strong economic growth, because they contribute to economic efficiency by diverting financial funds from unproductive to productive uses. The origin of this role of financial development may is traced back to the seminal work of Schumpeter [ 50 ]. In his study, Schumpeter points out that the banking system is the crucial factor for economic growth due to its role in the allocation of savings, the encouragement of innovation, and the funding of productive investments. Early works, such as Goldsmith [ 18 ], McKinnon [ 39 ] and Shaw [ 51 ] put forward considerable evidence that financial development enhances growth performance of countries. The importance of financial development in BRICS economies is reflected by the establishment of the ‘New Development Bank’ aimed at financing infrastructure and sustainable development projects in these and other developing countries. To the best of the authors’ knowledge, no attempt has been made so far to investigate the long-run relationship Footnote 1 between tourism, financial development and economic growth in case of BRICS countries. Hence, the present study is an attempt to fill the gap in the existing literature.

Review of past studies

From last few decades there has been a surge in the research related to tourism-growth nexus. The importance of growth and development and its determinants has been studied extensively both in developed and developing countries. Extant literature has recognized tourism as an important determinant of economic growth. The importance of tourism has grown exponentially, courtesy to its manifold advantages in form of employment, foreign exchange production household income and government revenues through multiplier effects, improvements in the balance of payments and growth in the number of tourism-promoted government policies [ 21 , 41 , 53 ]. Empirical findings on tourism and economic development have produced mixed finding and sometimes conflicting results despite the common choice of time series techniques as a research methodology. On empirical grounds, four hypotheses have been explored to determine the link between tourism and economic growth [ 12 ]. The first two hypotheses present an account on the unidirectional causality between the two variables, either from tourism to economic growth (Tourism-led economic growth hypothesis-TLGH) or its reserve (economic-driven tourism growth hypothesis-EDTH). The other two hypotheses support the existence of bi-directional hypothesis, (bi-directional causality hypothesis-BC) or that there is no relationship at all (no causality hypothesis-NC), respectively. According to TLEG hypothesis, tourism creates an array of benefits which spillover though multiple routes to promote the economic growth [ 55 ]. In particular, it is believed that tourism (1) increases foreign exchange earnings, which in turn can be used to finance imports [ 38 ], (2) it encourages investment and drives local firms toward greater efficiency due to the increased competition [ 3 , 31 ], (3) it alleviates unemployment, since tourism activities are heavily based on human capital [ 10 ] and (4) it leads to positive economies of scale thus, decreasing production costs for local businesses [ 1 , 14 ]. Other recent studies which find evidence in favor of the TLGH hypothesis include [ 44 , 52 ]. Even though literature is dominated by TLGH, few studies produce a result in support of EDTH [ 40 , 41 , 45 ]. Payne and Mervar [ 45 ] posit that tourism growth of a country is mobilized by the stability of well-designed economic policies, governance structures and investments in both physical and human capital. This positive and vibrant environment creates a series of development activities which proliferate and flourish the tourism. Pertaining to the readily available information, bi-directional causality could also exist between tourism income and economic growth [ 34 , 49 ]. From a policy view, a reciprocal tourism–economic growth relationship implies that government agendas should cater for promoting both areas simultaneously. Finally, there are some studies that do not offer support to any of the aforementioned hypotheses, suggesting that the impact between tourism and economic growth is insignificant [ 25 , 47 , 57 ]. There is a vast literature examining the relationship between tourism and growth as a result, only a selective literature review will be presented here.

Banday and Ismail [ 5 ] used ARDL cointegration model to test the relationship between tourism revenue and economic growth in BRICS countries from the time period of (1995–2013). The study validates the tourism-led growth hypothesis for BRICS countries, which evinces that tourism has positive influence on economic growth.

Savaş et al. [ 54 ] evaluated the tourism-led growth hypothesis in the context of Turkey. The study employed gross domestic product, real exchange rate, real total expenditure and international tourism arrivals to sketch out the causality among variables. The result reveals a unidirectional relationship between tourism and real exchange rate. The findings suggest that tourism is the driving force for economic growth, which in turn helps turkey to culminate its current account deficit.

Dhungel [ 15 ] made an effort to investigate causality between tourism and economic growth, In Nepal for the period of (1974–2012), by using Johansen’s cointegration and Error correction model. The result states that unidirectional causality exists in the long run, while in short run no causality exists between two constructs. The study emphasized that strategies should be devised to attain causality running from tourism to economic growth.

Mallick et al. [ 36 ] analyzed the nexus between economic growth and tourism in 23 Indian states over a period of 14 years (1997–2011). Using panel autoregressive distributed lag model based on three alternative estimators such as mean group estimator, pooled mean group and dynamic fixed effects, Research found that tourism exerts positive influence on economic growth in the long run.

Belloumi [ 8 ] examines the causal relationship between international tourism receipts and economic growth in Tunisia by using annual time series data for the period 1970–2007. The study uses the Johansen’s cointegration methodology to analyze the long-run relationship among the concerned variables. Granger causality based Vector error correction mechanism approach indicates that the revenues generated from tourism have a positive impact on economic growth of Tunisia. Thus, the study supports the hypothesis of tourism-driven economic growth, which is specific to developing countries that base their foreign exchange earnings on the existence of a comparative advantage in certain sectors of the economy.

Tang et al. [ 58 ] explored the dynamic Inter-relationships among tourism, economic growth and energy consumption in India for the period 1971–2012. The study employed Bounds testing approach to cointegration and generalized variance decomposition methods to analyze the relationship. The bounds testing and the Gregory-Hansen test for cointegration with structural breaks consistently reveals that energy consumption, tourism and economic growth in India are cointegrated. The study demonstrated that tourism and economic growth have positive impact on energy consumption, while tourism and economic growth are interrelated; with tourism exert significant influence on economic growth. Consequently, this study validates the tourism-led growth hypothesis in the Indian context.

Kadir and Karim [ 24 ]) examined the causal nexus between tourism and economic growth in Malaysia by applying panel time series approach for the period 1998–2005. By applying Padroni’s panel cointegration test and panel Granger causality test, the result indicated both short and long-run relationship. Further, the panel causality shows unidirectional causality directing from tourism receipts to economic growth. The result provides evidence of the significant contribution of tourism industry to Malaysia’s economic growth, thereby justifying the necessity of public intervention in providing tourism infrastructure and facilities.

Antonakakis et al. [ 2 ] test the linkage between tourism and economic growth in Europe by using a newly introduced spillover index approach. Based on monthly data for 10 European countries over the period 1995–2012, the findings suggested that the tourism–economic growth relationship is not stable over time in terms of both magnitude and direction, indicating that the tourism-led economic growth (TLEG) and the economic-driven tourism growth (EDTG) hypotheses are time-dependent. Thus, the findings of the study suggest that the same country can experience tourism-led economic growth or economic-driven tourism growth at different economic events.

Oh [ 41 ] verifies the contribution of tourism development to economic growth in the Korean economy by applying Engle and Granger two-stage approach and a bivariate Vector Autoregression model. He claimed that economic expansion lures tourists in the short run only, while there is no such long-run stable relationship between international tourism and economic development in Korea.

Empirical studies have pronouncedly focused on the literature that tourism promotes economic growth. To further substantiate the nexus, the study will investigate the plausible linkages between economic growth and international tourism while considering the relative importance of financial development in the context of BRICS nations. The inclusion of financial development in the examination of tourism-growth nexus is a unique feature of this study, which have an influencing role in economic growth as financial development has been theoretically and empirically recognized as source of comparative advantage [ 22 ].

This study employs panel ARDL cointegration approach to verify the existence of long-run association among the variables. Further, study estimated the long-run and short-run coefficients of the ARDL model. Subsequently, Dumitrescu and Hurlin [ 16 ] panel Granger causality test has been employed to check the direction of causality between tourism, financial development and economic growth among BRICS countries.

Database and methodology

Data and variables.

The study is analytical and empirical in nature, which intends to establish the relationship between economic growth and inbound tourism in BRICS countries. For the BRICS countries, limited studies have been conducted depicting the present scenario. Therefore, present study tries to verify the relevance of tourism in economic growth to further enhance the understanding of economic dynamics in BRICS countries. The data used in the study are annual figures for the period stretching from 1995 to 2015, consisting of one endogenous variable (GDP per capita, a proxy for economic growth) and two exogenous variables (international tourism receipts per capita and financial development). The variables employed in the study are based on the economic growth theory, proposed by Balassa [ 4 ], which states that export expansion has a relevant contribution in economic growth. Further, this study incorporates financial development in the model to reduce model misspecification as it is considered to have an influencing role in economic growth both theoretically and empirically [ 22 , 33 ].

The annual data for all the variables have been collected from the World Development Indicators (WDI, 2016) database. The variables used in the study includes gross domestic product per capita (GDP) in constant ($US2010) used as a proxy for economic growth (EG), international tourism receipts per capita (TR) in current US$ as it is widely accepted that the most adequate proxy of inbound tourism in a country is tourism expenditure normally expressed in terms of tourism receipts [ 32 ] and financial development (FD). In line with a recent study on the relationship between financial development and economic growth by Hassan et al. [ 19 ], financial development is surrogated by the ratio of the broad money (M3) to real GDP for all BRICS countries. Here we use the broadest definition of money (M3) as a proportion of GDP– to measure the liquid liabilities of the banking system in the economy. We use M3 as a financial depth indicator, because monetary aggregates, such as M2 or M1, may be a poor proxy in economies with underdeveloped financial systems, because they ‘are more related to the ability of the financial system to provide transaction services than to the ability to channel funds from savers to borrowers’ [ 26 ]. A higher liquidity ratio means higher intensity in the banking system. The assumption here is that the size of the financial sector is positively associated with financial services [ 29 ]. All the variables have been taken into log form.

Unit root test

To verify the long-run relationship between tourism and economic growth through Bounds testing approach, it is necessary to test for stationarity of the variables. The stationarity of all the variables can be assessed by different unit root tests. The study utilizes panel unit root test proposed by Levin et al. [ 35 ] henceforth LLC and Im et al. [ 23 ] henceforth IPS based on traditional augmented Dickey–Fuller (ADF) test. The LLC allows for heterogeneity of the intercepts across members of the panel under the null hypothesis of presence of unit root, while IPS allows for heterogeneity in intercepts as well as in the slope coefficients [ 48 ].

Panel ARDL approach to Cointegration

After checking the stationarity of the variables the study employs panel ARDL technique for Cointegration developed by Pesaran et al. [ 23 ]. Pesaran et al. [ 23 ] have introduced the pooled mean group (PMG) approach in the panel ARDL framework. According to Pesaran et al. [ 23 ], the homogeneity in the long-run relationship can be attributed to several factors such as arbitration condition, common technologies, or the institutional development which was covered by all groups. The panel ARDL bounds test [ 46 ] is more appropriate by comparing other cointegration techniques, because it is flexible regarding unit root properties of variables. This technique is more suitable when variables are integrated at different orders but not I (2). Haug [ 20 ] has argued that panel ARDL approach to cointegration provides better results for small sample data set such as in our case. The ARDL approach to cointegration estimates both long and short-run parameters and can be applied independently of variable order integration (independent of whether repressors are purely I (0), purely I(1) or combination of both. The ARDL bounds test approach used in this study is specified as follows:

where Δ is the first-difference operator, \(\alpha_{0}\) stands for constant, t is time element, \(\omega_{1} , \omega_{2} \;\;{\text{and}}\;\; \omega_{3}\) represent the short-run parameters of the model, \(\emptyset_{1} , \emptyset_{2} ,and \emptyset_{3}\) are long-run coefficients, while \(V_{it}\) is white noise error term and lastly, it represents country at a particular time period. In the ARDL model, the bounds test is applied to determine whether the variables are cointegrated or not.

This test is based on the joint significance of F -statistic and the χ 2 statistic of the Wald test. The null hypothesis of no cointegration among the variables under study is examined by testing the joint significance of the F -statistic of \(\omega_{1} , \omega_{2} ,\omega_{3}\) .

In case series variables are cointegrated, an error correction mechanism (ECM) can be developed as Eq. ( 2 ), to assess the short-run influence of international tourism and financial development on economic growth.

where ECT is the error correction term, and \(\varPhi\) is its coefficient which shows how fast the variables attain long-term equilibrium if there is any deviation in the short run. The error correction term further confirms the existence of a stable long-run relationship among the variables.

Panel granger causality test

To examine the direction of causality Dumitrescu and Hurlin [ 16 ] test is employed. Instead of pooled causality, Dumitrescu and Hurlin [ 16 ] proposed a causality based on the individual Wald statistic of Granger non-causality averaged across the cross section units. Dumitrescu and Hurlin [ 16 ] assert that traditional test allows for homogeneous analysis across all panel sets, thereby neglecting the specific causality across different units.

This approach allows heterogeneity in coefficients across cross section panels. The two statistics Wbar-statistics and Zbar-statistics provides standardized version of the statistics and is easier to compute. Wbar-statistic, takes an average of the test statistics, while the Zbar-statistic shows a standard (asymptotic) normal distribution.

They proposed an average Wald statistic that tests the null hypothesis of no causality in a panel subgroup against an alternative hypothesis of causality in at least one panel. Following equations will be used to check the direction of causality between the variables.

Estimation, results and Discussion

Descriptive statistics.

Table  1 presents descriptive statistics of variables selected for the period 1995–2015. The variable set includes GDP, FD and TR for all BRICS countries. Brazil tops the list with GDP per capita of 4.18, while India lagging behind all BRICS nations. In the recent economic survey by International Monetary Fund (IMF report 2016), India was ranked 126 for its per capita GDP. India’s GDP per capita went up to $7170 against all other BRICS countries which were placed in the above $10,000 bracket. China has the highest tourism receipts in comparison to other BRICS countries. China is a very popular country for foreign tourists, which ranks third after France and USA. In 2014, China invested $136.8 billion into its tourist infrastructure, a figure second only to the United States ($144.3 billion). Tourism, based on direct, indirect, and induced impact, accounted for near 10% in the GDP of China (WTTC report 2017).

Stationarity results

Primarily, we employed LLC and IPS unit root test to assess the integrated properties of the series. The results of IPS and PP tests are presented in Table  2 . Panel unit root test result evinces that FD and TR are stationary at level, while GDP per capita is integrated variable of order 1. The result exemplifies that GDP per capita, Tourism receipts and Financial Development are integrated at 1(0) and 1(1). Consequently, the panel ARDL approach to cointegration can be applied.

Cointegration test results

In view of the above results with a mixture of order integration, the panel ARDL approach to cointegration is the most appropriate technique to investigate whether there exists a long-run relationship among the variables [ 42 ]. Table  3 illustrates that the estimated value of F-statistics, which is higher than the lower and upper limit of the bound value, when InEG is used as a dependent variable. Hence, we reject the null hypothesis of no cointegration \(H_{0 } : \emptyset_{1} = \emptyset_{2} = \emptyset_{3} = 0\) of Eq. ( 1 ). Therefore, the result asserts that international tourism, financial development and economic growth are significantly cointegrated over the period (1995–2015).

Subsequently, the study investigates the long-run and short-run impact of international tourism and financial development on economic growth. Lag length is selected on the principle of minimum Bayesian information criterion (SBC) value, which is 2 in our case. The long-run coefficients of financial development and tourism receipts with respect to economic growth in Table  4 indicate that tourism growth and financial development exerts positive influence on economic growth in the long run. In other words, an increase in volume of tourism receipts per capita and financial depth spurs economic growth and both the coefficients are statistically significant in case of BRICS nations in the long run. The results are interpreted in detail as below:

The elasticity coefficient of economic growth with respect to tourism shows that 1% rise in international tourism receipts per capita would imply an estimated increase of almost 0.31% domestic real income in the long run, all else remaining the same. Thus, the earnings in the form of foreign exchange from international tourism affect growth performance of BRICS nations positively. This finding of our study is in consonance with the empirical results of Kreishan for Jordan [ 30 ], Balaguer and Cantavella-Jordá [ 3 ] for Spain and Ohlan [ 43 ] for India.

Further our finding lend support to the wide applicability of the new growth theory proposed by Balassa which states that export expansion promote growth performance of nations. Thus, validates TLGH coined by Balaguer and Cantavell-Jorda [ 3 ] which states that inbound tourism acts a long-run economic growth factor. The so called tourism-led growth hypothesis suggests that the development of a country’s tourism industry will eventually lead to higher economic growth and, by extension, further economic development via spillovers and other multiplier effects.

Likewise, financial development as expected is found to be positively associated with economic growth. The coefficient of financial development states that 1% improvement in financial development will push up economic growth by 0.22% in the long run, keeping all other variables constant. The empirical results are consistent with the finding of Hassan et al. [ 19 ] for a panel of South Asian countries. Well-regulated and properly functioning financial development enhances domestic production through savings, borrowings & investment activities and boosts economic growth. Further, it promotes economic growth by increasing efficiency [ 7 ]. Levine [ 33 ] believes that financial intermediaries enhance economic efficiency, and ultimately growth, by helping allocation of capital to its best use. Modern growth theory identifies two specific channels through which the financial sector might affect long-run growth; through its impact on capital accumulation and through its impact on the rate of technological progress. The sub-prime crisis which depressed the economic growth worldwide in 2007 further substantiates the growth-financial development nexus.

In the third and final step of the bounds testing procedure, we estimate short-run dynamics of variables by estimating an error correction model associated with long-run estimates. The empirical finding indicates that the coefficient of error correction term (ECT) with one period lag is negative as well as statistically significant. This finding further substantiates the earlier cointegration results between tourism, financial development and economic growth, and indicates the speed of adjustment from the short-run toward long-run equilibrium path. The coefficient of ECT reveals that the short-run divergences in economic growth from long-run equilibrium are adjusted by 43% every year following a short-run shock.

The short-run parameters in Table  5 demonstrates that tourism and financial development acts as an engine of economic growth in the short run as well. The coefficient of both tourism receipts per capita and financial development with one period lag is also found to be progressive and significant in the short run. These results highlight the role of earnings from international tourism and financial stability as an important driving force of economic growth in BRICS nations in the short run as well.

Further, a comparison between short-run and long-run elasticity coefficients evince that long-run responsiveness of economic growth with respect to tourism and financial development is higher than that of short run. It exemplifies that over time higher international tourism receipts and well-regulated financial system in BRICS nations give more boost to economic growth.

Analysis of causality

At this stage, we investigate the causality between tourism, financial development and economic growth presented in Table  6 . The result shows bi-directional causal relationship between tourism and economic growth, thereby validates ‘feedback hypothesis’ and consequently supported both the tourism-led growth hypothesis (TLGH) and its reciprocal, the economic-driven tourism growth hypothesis (EDTH). The bi-directional causality between inbound tourism and GDP, which directs the level of economic activity and tourism growth, mutually influences each other in that a high volume of tourism growth leads to a high level of economic development and reverse also holds true. These results replicate the findings of Banday and Ismail [ 5 ] in the context of BRICS countries, Yazdi et al. [ 27 ] for Iran and Kim et al. [ 28 ] for Taiwan. One of the channels through which tourism spurs economic growth is through the use of receipts earned in the form of foreign currency. Thus, growth in foreign earnings may allow the import of technologically advances goods that will favor economic growth and vice versa. Thus, results demonstrate that international tourism promotes growth and in turn economic expansion is necessary for tourism development in case of BRICS countries. With respect to policy context, this finding suggests that the BRICS nations should focus on economic policies to promote tourism as a potential source of economic growth which in turn will further promote tourism growth.

Similarly, in case of economic growth and financial development, the findings demonstrate the presence of bi-directional causality between two constructs. The findings validate thus both ‘demand following’ and supply leading’ hypothesis. The findings suggests that indeed financial development plays a crucial role in promoting economic activity and thus generating economic growth for these countries and reverse also holds. Our findings are in line with Pradhan [ 48 ] in case of BRICS countries and Hassan et al. [ 19 ] for low and middle-income countries. This suggests that finance development can be used as a policy variable to foster economic growth in the five BRICS countries and vice versa. The study emphasizes that the current economic policies should recognize the finance-growth nexus in BRICS in order to maintain sustainable economic development in the economy. The empirical results in this paper are in line with expectations, confirming that the emerging economies of the BRICS are benefiting from their finance sectors.

Finally, two-sided causal relationship is found between tourism receipts and financial development. That is, tourism might contribute to financial development and, in return, financial development may positively contribute to tourism. This means that financial depth and tourism in BRICS have a reinforcing interaction. The positive impact of tourism on financial development can be attributed to the fact that inflows of foreign exchange via international tourism not only increases income levels but also leads to rise in official reserves of central banks. This in turn enables central banks to adapt expansionary monetary policy. The positive contribution of financial sector to tourism is further characterized by supply leading hypothesis. Further, better financial and market conditions will attract tourism entrepreneurship, because firms will be able to use more capital instead of being forced to use leveraging [ 13 ]. Hence, any shocks in money supply could adversely affect tourism industry in these countries. Song and Lin [ 56 ] found that global financial crisis had a negative impact on both inbound and outbound tourism in Asia. This result is in consistent with Başarir and Çakir [ 6 ] for Turkey and four European countries.

Stability tests

In addition, to test the stability of parameters estimated and any structural break in the model CUSUM and CUSUMSQ tests are employed. Figs.  1 and 2 show blue line does not transcend red lines in both the tests, thus provides strong evidence that our estimated model is fit and valid policy implications can be drawn from the results.

Plot of CUSUM

Plot of CUSUMQ

Summary and concluding remarks

A rigorous study of the relationship between tourism and economic growth, through the tourism-led growth hypothesis (TLGH) perspective has remained a debatable issue in the economic growth literature. This study aims to empirically investigate the relationship between inbound tourism, financial development and economic growth in BRICS countries by utilizing the panel data over the period 1995–2015. The study employs the panel ARDL approach to cointegration and Dumitrescu-Hurlin panel Granger causality test to detect the direction of causation.

To the best of authors’ knowledge, this is the first study which explored the relationship between economic growth and tourism while considering the relative importance of financial development in the context of BRICS nations. The empirical results of ARDL model posits that in BRICS countries inbound tourism, financial development and economic growth are significantly cointegrated, i.e., variables have stable long-run relationship. This methodology has allowed obtaining elasticities of economic growth with respect to tourism and financial development both in the long run and short run. The result reveals that international tourism growth and financial development positively affects economic growth both in the long run and short run. The coefficient of tourism indicates that with a 1% rise in tourism receipts per capita, GDP per capita of BRICS economies will go up by 0.31% in the long run. This finding lends support to TLGH coined by Balaguer and Cantavell-Jorda [ 3 ] which states that inbound tourism acts a long-run economic growth factor. The so called tourism-led growth hypothesis suggests that the development of a country’s tourism industry will eventually lead to higher economic growth and, by extension, further economic development via spillovers and other multiplier effects.

Likewise, 1% improvement in financial development, on average, will increase economic growth in BRICS countries by 0.22% in the long run. The result seems logical as modern growth theory identifies two channels through which the financial sector might affect long-run growth: first, through its impact on capital accumulation and secondly, through its impact on the rate of technological progress. The sub-prime crisis which hit the economic growth Worldwide in 2007 further substantiates the growth-financial development nexus.

The negative and statistically significant coefficient of lagged error correction term (ECT) further substantiates the long-run equilibrium relationship among variables. The negative coefficient of ECT also shows the speed of adjustment toward long-run equilibrium is 43% per annum if there is any short-run deviation. The estimates of parameters are found to be stable by applying CUSUM and CUSUMQ for the time period under consideration. Therefore, inbound tourism earnings and financial institutions can be used as a channel to increase economic growth in BRICS economies.

Further, Granger causality test result indicates the bi-directional causation in all cases. Hence, the causal relationship between international tourism and economic growth is bi-directional. And, consequently this empirical finding lends support to both the tourism-led growth hypothesis (TLGH) and its reciprocal, the economic-driven tourism growth hypothesis (EDTH). This means that tourism is not only an engine for economic growth, but the economic outcome on itself can play an important role in providing growth potential to tourism sector.

The Granger causality findings provide useful information to governments to examine their economic policy, to adjust priorities regarding economic investment, and boost their economic growth with the given limited resources. Thus, it is suggested that more resources should be allocated to tourism industry and tourism-related industries if the tourism-led growth hypothesis holds true. On the other side, if economic-driven tourism growth is supported then more resources should be diverted to leading industries rather than the travel and tourism sector, and the tourism industry will in turn benefit from the resulting overall economic growth. And, when bi-directional causality is detected, a balanced allocation of economic resources for the travel and tourism sector and other industries is important and necessary. The policy implication is that resource allocation supporting both the tourism and tourism-related industries could benefit both tourism development and economic growth.

To sum up, the major finding of this study lends support to wide applicability of the tourism-led growth hypothesis in case of BRICS countries. Thus, in the Policy context, significant impact of tourism on BRICS economy rationalizes the need of encouraging tourism. Tourism can spur economic prosperity in these countries and for this reason; policymakers should give serious consideration toward encouraging tourism industry or inbound tourism. BRICS countries should focus more on tourism infrastructure, such as, convenient transportation, alluring destinations, suitable tax incentives, viable hostels and proper security arrangements to attract the potential tourists. Most of these countries are devoid of rich facilities and popular tourist incentives, to get promoted as important destination and in the long-run promotes economic growth. Further, they need a staunch support from all sections of authorities, non-government organizations (NGOs), and private and allied industries, in the endeavor to attain sustainable growth in tourism. Both state and non-state actors must recognize this growing industry and its positive implication on economy.

For future research, we suggest that researchers should consider the nonlinear factor in the dynamic relationship of tourism and economic growth in case of BRICS countries. Further one can go for comparative study to examine the TLGH in BRICS countries.

Availability of data and materials

Data used in the study can be provided by the corresponding author on request.

There are no fixed definitions of short, medium and long run and generally in macroeconomics, short run can be viewed as 1 to 2 or 3 years, medium up to 5 years and long run from 5 years to 20 or 25 years.

Abbreviations

autoregressive distributed lag model

Brazil, Russia, India, China and South-Africa

United Nations World Tourism Organization

World Travel & Tourism Council

gross domestic product

world development indicators

tourism-led growth hypothesis

export-led growth hypothesis

economic-driven tourism hypothesis

augmented Dickey–Fuller test

error correction model

error correction term

Andriotis K (2002) Scale of hospitality firms and local economic development—evidence from Crete. Tourism Manag 23(4):333–341

Google Scholar  

Antonakakis N, Dragouni M, Filis G (2015) How strong is the linkage between tourism and economic growth in Europe? Econ Modell 44:142–155

Balaguer J, Cantavella-Jorda M (2002) Tourism as a long-run economic growth factor: the Spanish case. Appl Econ 34(7):877–884

Balassa B (1978) Exports and economic growth: further evidence. J Dev Econ 5(2):181–189

Banday UJ, Ismail S (2017) Does tourism development lead positive or negative impact on economic growth and environment in BRICS countries? A panel data analysis. Econ Bull 37(1):553–567

Basarir C, Çakir YN (2015) Causal interactions between CO 2 emissions, financial development, energy and tourism. Asian Econ Financ Rev 5(11):1227

Bell C, Rousseau PL (2001) Post-independence India: a case of finance-led industrialization? J Dev Econ 65(1):153–175

Belloumi M (2010) The relationship between tourism receipts, real effective exchange rate and economic growth in Tunisia. Int J Tour Res 12(5):550–560

Blake A, Sinclair MT, Soria JAC (2006) Tourism productivity: evidence from the United Kingdom. Ann Tourism Res 33(4):1099–1120

Brida JG, Pulina M (2010) A literature review on the tourism-led-growth hypothesis. Working paper CRENoS201017. Centre for North South Economic Research, Sardinia

Brida JG, Cortes-Jimenez I, Pulina M (2016) Has the tourism-led growth hypothesis been validated? A literature review. Curr Issues Tourism 19(5):394–430

Chatziantoniou I, Filis G, Eeckels B, Apostolakis A (2013) Oil prices, tourism income and economic growth: a structural VAR approach for European Mediterranean countries. Tourism Manag 36:331–341

Chen M-H (2010) The economy, tourism growth and corporate performance in the Taiwanese hotel industry. Tourism Manag 31:665–675

Croes R (2006) A paradigm shift to a new strategy for small island economies: embracing demand side economics for value enhancement and long term economic stability. Tourism Manag 27:453–465

Dhungel KR (2015) An econometric analysis on the relationship between tourism and economic growth: empirical evidence from Nepal. Int J Econ Financ Manag 3(2):84–90

Dumitrescu EI, Hurlin C (2012) Testing for Granger non-causality in heterogeneous panels. Econ Modell 29(4):1450–1460

Daniel Mminele (2016) The role of BRICS in the global economy. Speech at the Bundesbank Regional Office in North Rhine-Westphalia, Düsseldorf, Germany. https://www.bis.org/review/r160720c.pdf

Goldsmith RW (1969) Financial structure and development (No. HG174 G57)

Hassan MK, Sanchez B, Yu JS (2011) Financial development and economic growth: new evidence from panel data. Quart Rev Econ Financ 51(1):88–104

Haug AA (2002) Temporal aggregation and the power of cointegration tests: A Monte Carlo study. Oxf Bull Econ Stat 64:399–412

Henry EW, Deane B (1997) The contribution of tourism to the economy of Ireland in 1990 and 1995. Tourism Manag 18(8):535–553

Hur J, Raj M, Riyanto YE (2006) Finance and trade: a cross-country empirical analysis on the impact of financial development and asset tangibility on international trade. World Dev 34(10):1728–1741

Im KS, Pesaran MH, Shin Y (2003) Testing for unit roots in heterogeneous panels. J Econ 115(1):53–74

Kadir N, Karim MZA (2012) Tourism and economic growth in Malaysia: evidence from tourist arrivals from Asean-S countries. Econ Res Ekonomska istraživanja 25(4):1089–1100

Katircioglu S (2009) Testing the tourism-led growth hypothesis: the case of Malta. Acta Oeconomica 59(3):331–343

Khan M, Senhadji A (2003) Financial development and economic growth: a review and new evidence. J Afr Econ 12:89–110

Khoshnevis Yazdi S, Homa Salehi K, Soheilzad M (2017) The relationship between tourism, foreign direct investment and economic growth: evidence from Iran. Curr Issues Tourism 20(1):15–26

Kim HJ, Chen MH (2006) Tourism expansion and economic development: the case of Taiwan. Tourism Manag 27(5):925–933

King R, Levine R (1993) Finance, entrepreneurship, and growth: theory and evidence. J Monet Econ 32:513–542

Kreishan FM (2010) Tourism and economic growth: the case of Jordan. Eur J Soc Sci 15:229–234

Krueger A (1980) Trade policy as an input to development. Am Econ Rev 70:188–292

Kumar RR (2014) Exploring the role of technology, tourism and financial development: an empirical study of Vietnam. Qual Quant 48(5):2881–2898

Levine R (1997) Financial development and economic growth: views and agenda. J Econ Lit 35(2):688–726

Lee CC, Chang CP (2008) Tourism development and economic growth: a closer look at panels. Tourism Manag 29(1):180–192

Levin A, Lin CF, Chu CSJ (2002) Unit root tests in panel data: asymptotic and finite-sample properties. J Econ 108(1):1–24

Mallick L, Mallesh U, Behera J (2016) Does tourism affect economic growth in Indian states? Evidence from panel ARDL model. Theor Appl Econ 23(1):183–194

Mastny L (2001) Treading lightly: new paths for international tourism. In: Peterson JA (ed) World Watch Paper 159. World Watch Institute

McKinnon RI (1964) Foreign exchange constraints in economic development and efficient aid allocation. Econ J 74(294):388–409

McKinnon RI (1973) Money and capital in economic development. The Brookings Institution, Washington

Narayan PK (2004) Economic impact of tourism on Fiji’s economy: empirical evidence from the computable general equilibrium model. Tourism Econ 10(4):419–433

Oh CO (2005) The contribution of tourism development to economic growth in the Korean economy. Tourism Manag 26(1):39–44

Ohlan R (2015) The impact of population density, energy consumption, economic growth and trade openness on CO 2 emissions in India. Nat Hazards 79(2):1409–1428

Ohlan R (2017) The relationship between tourism, financial development and economic growth in India. Future Bus J 3(1):9–22

Parrilla JC, Font AR, Nadal JR (2007) Tourism and long-term growth a Spanish perspective. Ann Tourism Res 34(3):709–726

Payne JE, Mervar A (2010) Research note: the tourism-growth nexus in Croatia. Tourism Econ 16(4):1089–1094

Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Econ 16(3):289–326

Po WC, Huang BN (2008) Tourism development and economic growth—a nonlinear approach. Phys A Stat Mech Appl 387(22):5535–5542

Pradhan RP, Dasgupta P, Bele S (2013) Finance, development and economic growth in BRICS: a panel data analysis. J Quant Econ 11(1–2):308–322

Ridderstaat J, Oduber M, Croes R, Nijkamp P, Martens P (2014) Impacts of seasonal patterns of climate on recurrent fluctuations in tourism demand: evidence from Aruba. Tourism Manag 41:245–256

Schumpeter JA (1911) The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle. Harvard University Press, Cambridge, p 1934

Shaw ES (1973) Financial deepening in economic development. Oxford University Press, London

Sugiyarto G, Blake A, Sinclair MT (2003) Tourism and globalization: economic impact in Indonesia. Ann Tourism Res 30(3):683–701

Szivas E, Riley M (1999) Tourism employment during economic transition. Ann Tourism Res 26(4):747–771

Savaş B, Beşkaya A, Şamiloğlu F (2010) Analyzing the impact of international tourism on economic growth in Turkey. Uluslararası Yönetim İktisat ve İşletme Dergisi 6(12):121–136

Schubert SF, Brida JG, Risso WA (2011) The impacts of international tourism demand on economic growth of small economies dependent on tourism. Tourism Manag 32(2):377–385

Song H, Lin S (2010) Impacts of the financial and economic crisis on tourism in Asia. J Travel Res 49(1):16–30

Tang CF (2013) Temporal Granger causality and the dynamics relationship between real tourism receipts, real income and real exchange rates in Malaysia. Int J Tourism Res 15(3):272–284

Tang CF, Tiwari AK, Shahbaz M (2016) Dynamic inter-relationships among tourism, economic growth and energy consumption in India. Geosyst Eng 19(4):158–169

United Nations World Tourism Report (2014) Annual report 2014

World Travel & Tourism Council (2012) Travel & Tourism Economic Impact. World, London: World Travel & Tourism Council.

World Travel and Tourism Council (2016) Global travel and tourism economic impact update August 2016

Download references

Acknowledgements

Not applicable.

This research has received no specific funding.

Author information

Authors and affiliations.

Department of Economics, Aligarh Muslim University, Aligarh, India

Haroon Rasool & Md. Tarique

Department of Commerce, Aligarh Muslim University, Aligarh, India

Shafat Maqbool

You can also search for this author in PubMed   Google Scholar

Contributions

HR has written introduction, research methodology and results and discussion part. Review of literature and data analysis was done by SM. Conclusion was written jointly by HR and SM. MT has provided useful inputs and finalized the manuscript. All authors read and approved the manuscript.

Corresponding author

Correspondence to Haroon Rasool .

Ethics declarations

Competing interests.

Authors declare that there are no competing interests.

Additional information

Publisher's note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ .

Reprints and permissions

About this article

Cite this article.

Rasool, H., Maqbool, S. & Tarique, M. The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis. Futur Bus J 7 , 1 (2021). https://doi.org/10.1186/s43093-020-00048-3

Download citation

Received : 02 August 2019

Accepted : 30 November 2020

Published : 05 January 2021

DOI : https://doi.org/10.1186/s43093-020-00048-3

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Economic growth
• Inbound tourism
• Financial development
• Cointegration
• Panel granger causality

JEL Classification

The Importance of Tourism on Economies and Businesses

Have you ever wondered why tourism is such a big deal for many countries and businesses? Why do they invest so much in promoting tourism?

Tourism is one of the world’s largest industries, generating trillions of dollars in revenue each year. It has a significant impact on economies and businesses, creating jobs, generating income, and boosting local economies.

The importance of tourism cannot be overstated. It affects not only the tourism industry but also other sectors such as transportation, hospitality, and retail. In this article, we will explore the economic and business benefits of tourism and why countries must invest in this industry.

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.

Importance of Tourism to Local Economies

Tourism is a crucial contributor to the growth of local economies. A thriving local economy creates opportunities for residents to lead happier, more comfortable lives.

However, every region requires some assistance to achieve its full potential. Communities depend on neighbouring cities, counties, and other areas for economic growth, and tourism plays a vital role in this process, particularly for smaller communities.

Tourism provides several benefits to local economies. It generates new revenue streams by attracting visitors and increasing the amount of money spent in the area. As visitors explore local attractions, they purchase goods and services from local businesses, such as restaurants, hotels, and souvenir shops. This, in turn, creates employment opportunities, which can benefit the residents of the area.

Additionally, tourism can stimulate the development of infrastructure in the area, such as the construction of new hotels, transportation systems, and other amenities. This not only creates jobs but also attracts new businesses, investors, and entrepreneurs, contributing to the economic growth of the region.

Tourism is especially significant for small communities that may have limited resources to grow their local economies.

By attracting visitors, small towns can generate new revenue streams and create new job opportunities. Tourism can also help to promote and preserve local culture, traditions, and heritage, encouraging residents to take pride in their community.

What are the impacts of tourism?

The advantages of tourism extend beyond the creation of billions of dollars and hundreds of millions of jobs and business opportunities. A thriving tourism industry also helps to build infrastructure such as roads, parks, hospitals, schools, and community areas.

Additionally, it assists in the preservation of heritage sites, natural wonders, and precious cultures, creating a platform for people to showcase their cultural traditions and safeguard sacred areas.

By choosing to stay in locally-owned accommodations, shop in artisan markets, take part in traditional festivals and tour with local guides, travellers can have a direct positive impact.

The tourism industry also contributes to protecting the environment and its wildlife, with many tourism businesses offering eco-friendly services and encouraging tourists to respect the lands and communities they visit.

There are many inspiring cases of change, such as former poachers turning into safari guides or gamekeepers, as the income from tourists wanting to see wildlife means that protecting the animals is a far more valuable venture. Tourists can also contribute to the preservation of natural areas by paying entry fees for national parks and making sure to leave only footprints and take only photos.

These positive impacts of the tourism industry are all part of a move towards responsible tourism, where the focus is on having a beneficial effect on the communities visited, protecting wildlife, and caring for the planet.

Reasons Why Tourism Is Important 

Tourism is a vital industry that has a significant impact on economies, cultures, and individuals around the world. From boosting local economies to promoting cultural exchange and preserving heritage sites, the benefits of tourism are numerous and far-reaching. 

Here are ten reasons why tourism is important:

Tourism is a significant source of revenue for communities around the world. Visitors who come to explore new places and experience unique activities bring in money that can boost the local economy. This spending occurs in a variety of ways, including dining at restaurants, shopping at local stores, and participating in tours or events.

As a result, businesses of all types and sizes have the potential to earn more income when their community attracts tourists. This influx of money can benefit not only business owners but also employees, who will have more resources to spend within the local economy.

Moreover, the increase in sales tax revenue generated by tourism can fund important infrastructural and environmental projects in the community.

2. Job Creation

Tourism is also an important source of employment for residents. The growth of the tourism industry means more job opportunities for people in various fields, such as hospitality, transportation, and entertainment.

When businesses see an increase in demand for their products and services, they may need to hire more staff to meet the needs of their customers. This job creation can result in lower unemployment rates and a boost in the standard of living for people in the community.

3. Cultural Preservation

Tourism plays a crucial role in preserving culture. This is evident in a few ways. Firstly, tourism provides support to artisans who sell their crafts to visitors. Markets and shops are a significant draw for many tourists interested in purchasing souvenirs for people back home or as a way to remember their trip.

Secondly, tourists often visit cultural sites and attend local music, dance, theatre, and other performances. These activities help sustain intangible culture, which gives regions their unique identity and protects the multiculturalism of our world.

Cultural tourism has been known to help preserve heritage sites and landmarks that might otherwise have been lost. For example, the UNESCO World Heritage List identifies and protects cultural and natural heritage sites of universal significance.

These sites, which include ancient ruins, religious sites, and architectural wonders, draw millions of visitors each year. The income generated by tourism provides resources for maintaining and protecting these sites, ensuring their preservation for future generations.

In addition to preserving tangible cultural heritage, tourism also promotes the continuation of traditional practices and customs. When communities realize that tourists are interested in their culture, they are often more motivated to preserve and celebrate it. This can help prevent cultural practices from being lost to time and modernization.

Furthermore, tourism encourages the development of cultural events and festivals that celebrate the customs and traditions of a community. These events create a sense of pride and community identity, and can also provide opportunities for economic growth.

4. Infrastructure Development

Tourism can also lead to infrastructure development in a community. As more visitors come to an area, the need for amenities like roads, public transportation, and accommodations increases. This demand can spur the construction of new hotels, restaurants, and other tourism-related businesses.

Furthermore, the local government may invest in improving the infrastructure to make the community more attractive to tourists. Such improvements can include the construction of new highways, parks, and public facilities, which can benefit not only tourists but also residents.

5. Improved Quality of Life

Tourism can improve the quality of life for residents. When a community’s economy is bolstered by tourism, residents may enjoy a higher standard of living, with better access to services and amenities.

For example, new businesses may offer more job opportunities and contribute to a more diverse economy. This can lead to better public services, improved educational opportunities, and a stronger sense of community pride.

Additionally, tourists may bring in new ideas, perspectives, and cultures that can enrich the local community.

6. Job Opportunities

Tourism is not only beneficial for businesses and the economy but also for the people who live in the community. One of the significant advantages is the job opportunities that arise from a thriving tourism industry.

As more tourists visit a community, new businesses and service offerings emerge, creating job openings. Industries such as hospitality, food service, and travel produce a lot of new job opportunities. For example, hotels, restaurants, and tour companies hire staff to accommodate and entertain visitors.

Moreover, tourism enables locals to create new businesses or expand existing ones, which opens up new entrepreneurial opportunities. Services like Airbnb empower residents to earn revenue by renting out their homes or apartments to tourists seeking comfortable and authentic local experiences.

7. Tourism impacts GDP growth (and decline)

Tourism has a significant impact on a country’s GDP. In 2019, the direct contribution of travel and tourism accounted for 3.3% of the world’s total GDP , representing a small rise since 2018.

However, the COVID-19 pandemic in 2020 resulted in a significant decline in tourism’s contribution to the GDP, dropping by almost 50% according to the World Travel and Tourism Council Report .

Tourism’s contribution to a country’s GDP is closely linked to the number of jobs it creates. When tourism flourishes, businesses thrive, which leads to more employment opportunities. As a result, more people have money to spend within their local economy. This increase in sales tax revenue funds important infrastructural and environmental endeavours in the community.

On the other hand, a decline in tourism can result in a decrease in revenue, which can negatively impact the GDP. The decline can also result in fewer employment opportunities, making it harder for residents to make a living.

The pandemic highlighted the significant impact that tourism has on GDP growth (and decline) and the importance of supporting the industry during difficult times.

8. Tourism supports low-income countries

Tourism is a crucial source of revenue for many of the world’s lowest-income countries. In 2015, 48 of the lower-income and lower-middle-income countries experienced an increase in tourist arrivals , resulting in approximately $21 billion (USD) in revenue.

For Small Island Developing States (SIDS) across the globe, tourism accounts for 30% of their export earnings . In the Pacific island nation of Palau, tourism is responsible for a staggering 38% of GDP .

For these countries, tourism plays a vital role in their economic growth and development. The revenue generated from tourism can be used to fund important initiatives such as infrastructure improvements, healthcare, education, and conservation efforts.

Furthermore, tourism creates employment opportunities for residents, providing them with a means to support their families and contribute to their communities.

9. Tourism is good for rural areas

The concept of “rural tourism” has gained popularity as urban tourists crave a break from busy city life and seek out more natural environments. They look for unique experiences such as staying on a farm, going for days-long hikes with guides, rock climbing, and more.

These visits create job opportunities for people residing in rural areas. Moreover, they highlight the value of preserving and investing in these regions.

Tourism in rural areas also offers tourists an opportunity to learn more about an area in its natural state and form a deeper connection with the local community. It encourages people to explore local cultural and historical attractions while supporting small businesses and community development.

The development of rural tourism can also bring a sense of pride and identity to local communities by showcasing the unique aspects of their region.

10. Tourism encourages conservation

Tourism can encourage conservation efforts in various ways. First, nature-based tourism, such as scuba diving, hiking, camping, and wildlife watching, is popular and motivates authorities to protect natural areas like old-growth forests, lakes, coastlines, state parks, and gardens.

A case in point is Costa Rica, which recognized the potential of conservation in attracting tourists. The country reversed deforestation trends and doubled its forest cover in just three decades. This boosted tourism, which generated approximately $6.14 billion in 2019 .

Tourism also creates awareness of the importance of conservation among tourists, business owners, and communities. Visitors learn about the natural environment and ecosystems, and how they can contribute to preserving them. This education can inspire individuals to become conservationists or support conservation efforts.

Moreover, tourism can provide financial support for conservation initiatives. For instance, visitors pay entry fees to national parks, which generate revenue that authorities can use for conservation programs. Some businesses in the tourism industry also donate a portion of their profits to conservation organizations or support local community conservation projects.

Lastly, tourism can promote sustainable practices that reduce environmental impact. Many tourism businesses now offer eco-friendly services and encourage tourists to respect local cultures and the environment. Such initiatives can help conserve resources and preserve the natural environment for future generations.

Tumisang Bogwasi

2X Award-Winning Entrepreneur | Empowering Brands to Generate Leads, Grow Revenue with Business Strategy and Digital Marketing | Founder, CEO of Fine Group

Related Posts

Exploring the World of Tourism: A Comprehensive Guide to 49 Types of Tourism

• June 26, 2023

Trending now

What is travel and tourism’s role in future global prosperity?

The travel and tourism sector faces many challenges in a disrupted world, from geopolitical tensions to climate change. Image:  Unsplash.

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Marion Karl

Maksim soshkin.

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Travel and Tourism is affecting economies, industries and global issues

.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved with our crowdsourced digital platform to deliver impact at scale

Stay up to date:, travel and tourism.

• The travel and tourism sector faces many challenges in a disrupted world, from geopolitical tensions to climate change.
• The sector can be a powerful driver of sustainable economic prosperity – supporting people and places.
• The latest Travel and Tourism Development Index benchmarks the factors and policies that enable resilient and sustainable development.

With 2023 at an end, the Travel and Tourism (T&T) sector is finally positioned to move past the impact of the pandemic, with international tourist arrivals anticipated to reach levels reminiscent of the pre-pandemic era . However T&T sector stakeholders and destinations are navigating a complex terrain marked by external challenges such as geopolitical and economic uncertainty, inflation and dangers from the proliferation of extreme weather events like wildfires.

Many of these issues represent broader ongoing and longer-term economic, environmental, societal, geopolitical and technological trends. Within this context, consumers, policy-makers and advocates have expressed growing apprehension about the sector’s record on sustainability and its role in issues such as climate change, overcrowding, and overall impact on local communities.

Against this dynamic backdrop, it becomes imperative for the leaders and visionaries of the T&T industry to not only comprehend the impending trends but also acknowledge the sector's potential to tackle global challenges. When managed thoughtfully, travel and tourism emerge as potent drivers of resilient and sustainable development, contributing to the collective well-being of our planet.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

Why travel and tourism have a role to play in future global prosperity

The recently released World Economic Forum’s Global Risk Report 2024 sheds light on the short- and long-term risks that the world faces. According to the report’s survey results, economic and societal risks, such as inequality, inflation, migration, and economic downturns, take center stage in the next two years, while environmental concerns, including extreme weather events and biodiversity loss, dominate the global risks for the next decade.

Given that T&T accounts for 7.6% of global GDP and close to 300 million jobs , the sector plays a critical role in addressing societal and economic challenges. The sector's significance magnifies as it empowers small- and medium-sized enterprises, with over 80% of T&T businesses falling under this category. It also plays a pivotal role in employing women, youth, migrants, and informal workers, thereby contributing significantly to economic opportunities .

T&T is also a major driver of global connectivity at a time when geopolitical tensions and conflict are on the rise, while globalization seems to be slowing. In the coming decade, T&T’s role in mitigating socioeconomic risks will only climb, with the World Travel and Tourism Council forecasting T&T sector GDP to grow at nearly double the rate of the broader global economy in the 10 years to 2033, thereby adding more than 100 million new jobs.

On an environmental level, T&T is a key stakeholder in addressing climate change and protecting the environment. The sector is not only affected by these challenges but also contributes to climate change with around 8% of global anthropogenic greenhouse gas emissions stemming from tourism activities. Therefore, actions in the sector, especially in hard-to-abate segments like aviation, are important to helping meet global climate change targets. Moreover, many destinations' dependence on nature-based attractions makes T&T a means to generate economic value for protecting nature.

Have you read?

What is overtourism and how can we overcome it , this is how to leverage community-led sustainable tourism for people and biodiversity, are we finally turning the tide towards sustainable tourism, the podcasts to listen to during davos #wef24, unlocking travel and tourism's potential.

To unlock the full potential of T&T as a tool for addressing many of the world’s ongoing and future challenges, sector leaders must prioritize sustainability and resilience in their development strategies.

The Global Future Council on Sustainable Tourism emphasizes the importance of creating standards and metrics for sustainability, cultivating a well-trained and inclusive workforce, prioritizing and engaging with local communities, aligning visitors with destinations carrying capacity and making appropriate investments in relevant infrastructure .

Achieving these goals necessitates a high degree of collaboration among sector and non-sector businesses, employees, and government actors at national and local levels, including tourism and environmental agencies, civil society, and international organizations.

In the coming months, the Forum, in collaboration with the University of Surrey, will unveil the latest edition of the Travel and Tourism Development Index (TTDI). This index promises to provide a comprehensive understanding of the factors and policies that enable the sustainable and resilient development of the T&T sector.

Drawing on the latest data encompassing environmental and social impacts of T&T, labour markets, infrastructure, natural and cultural resources, and demand sustainability, the TTDI offers insights into the challenges ahead, the sector's readiness for risks and opportunities, and how it can be leveraged to address global issues. The importance of T&T for global prosperity will only grow in the years, creating new opportunities for shared commitment to a sustainable and inclusive future.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:

The agenda .chakra .wef-n7bacu{margin-top:16px;margin-bottom:16px;line-height:1.388;font-weight:400;} weekly.

A weekly update of the most important issues driving the global agenda

.chakra .wef-1dtnjt5{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-flex-wrap:wrap;-ms-flex-wrap:wrap;flex-wrap:wrap;} More on Industries in Depth .chakra .wef-17xejub{-webkit-flex:1;-ms-flex:1;flex:1;justify-self:stretch;-webkit-align-self:stretch;-ms-flex-item-align:stretch;align-self:stretch;} .chakra .wef-nr1rr4{display:-webkit-inline-box;display:-webkit-inline-flex;display:-ms-inline-flexbox;display:inline-flex;white-space:normal;vertical-align:middle;text-transform:uppercase;font-size:0.75rem;border-radius:0.25rem;font-weight:700;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;line-height:1.2;-webkit-letter-spacing:1.25px;-moz-letter-spacing:1.25px;-ms-letter-spacing:1.25px;letter-spacing:1.25px;background:none;padding:0px;color:#B3B3B3;-webkit-box-decoration-break:clone;box-decoration-break:clone;-webkit-box-decoration-break:clone;}@media screen and (min-width:37.5rem){.chakra .wef-nr1rr4{font-size:0.875rem;}}@media screen and (min-width:56.5rem){.chakra .wef-nr1rr4{font-size:1rem;}} See all

5 must-reads that will get you up to speed on the energy transition

David Elliott

August 19, 2024

From source to stomach: How blockchain tracks food across the supply chain and saves lives

Matthew Van Niekerk

August 12, 2024

From blocked views to free food: How holiday destinations in Japan, Denmark and more are tackling overtourism

Gabi Thesing, Ian Shine and David Elliott

July 25, 2024

How these 5 steel producers are taking action to decarbonize steel production

Mandy Chan and Daniel Boero Vargas

June 25, 2024

How we can best empower the future of business in APAC with GenAI

John Lombard

June 24, 2024

AMNC24: What you need to know about industry transformation

Pooja Chhabria

June 23, 2024

The impact of tourism: How can we all do this better?

John perrottet, beril benli.

Tourism is growing, and growing fast. After surpassing 1 billion international visitors in 2012, we are expecting 1.8 billion by 2030. Tourism is growing faster than the global economy and, for the first time, the statistics for 2015 are expected to show that there were more trips taken to the developing world than to the developed world. But what does this actually mean? Growth, on its own, is not enough. Destinations and their stakeholders are responsible for ensuring that growth is well-managed; that benefits are maximized; and that any negative externalities are minimized. This requires a continuous process of planning and management that evolves and that can be measured over time. For the World Bank Group, our clients and our development partners, this process of planning and management is a central interest. How can we help these processes to deliver more and better development impact? What kinds of interventions or types of assistance will deliver the best results? How do you define the best results – for whom? – and how do we measure them? Being able to demonstrate how the tourism sector contributes to the Bank Group’s twin goals of eliminating extreme poverty and promoting shared prosperity is an imperative for all stakeholders. It’s relevant for national governments, sub-national state agencies, businesses (both multinationals and SMEs), multilateral development banks, NGOs, academics and think tanks. Moreover, it’s vital in helping guide future planning and development, gaining access to and applying for funding, and demonstrating progress to constituents at all levels.

Despite the great breadth and depth of existing impact information, however, serious concerns remain about the accuracy, complexity, gaps, comparability and sustainability of the types of the impact analyses that have been carried out. The Bank Group’s Sustainable Tourism Global Solutions Group recently convened a thought-leadership event in Washington to begin a preliminary discussion about how all stakeholders can come together to try and address some of the current shortcomings. During the “ Measuring for Impact in Touris m” event, we heard about a wide range of challenges for those working in this area and we began to map out the greatest gaps and issues. As Anabel Gonzalez, the Senior Director of the Trade and Competitiveness Global Practice, said at that conference: “We want to be better at monitoring and evaluating our impact, we want to learn from others, and we want to contribute more effectively to tourism development.  I believe these are goals most of you will share. We invite you to join this discussion – and be frank, open and provocative.”The findings can be found in our report, “ Towards More Effective Impact Measurement in the Tourism Sector: Observations and Key Issues ,” which highlights a number of priorities. Some of those challenges concern the availability, quality and consistency of data; the high cost of impact measurement for SMEs; the proliferation of different systems; issues of attribution; quantifying notions of “value”; and the ability to communicate effectively to a wide range of audiences. Some key areas for immediate follow-up and further analysis were also identified. They include:

• Exploring the theory of change by examining more closely the proposition  that, when tourism growth occurs, those living in extreme poverty benefit and by digging deeper into what tourism growth really means for the poor, especially in terms of employment. 
• Assessing the impact value of different types of tourism.
• Assessing and developing the role of technology for data collection, impact measurement and communication.
• Evaluating the use of training for better communication – including assessing what has been tried and what has worked and considering how it could be scaled up. 
• Analyzing the necessity and practicality of improving collaboration among various actors, and assessing the alignment of frameworks along with proposals for greater alignment.
• Developing ideas and proposals for the enhanced sharing and pooling of impact data.
• Developing ideas and proposals for greater inclusion of SMEs.
• Competitiveness
• Digital Development
• Urban Development

Get updates from Private Sector Development Blog

Thank you for choosing to be part of the Private Sector Development Blog community!

Your subscription is now active. The latest blog posts and blog-related announcements will be delivered directly to your email inbox. You may unsubscribe at any time.

Senior Industry Specialist

Junior Professional Associate

Join the Conversation

• Share on mail
• comments added

The Economic Impact of Tourism: What You Need to Know

How Much Does Tourism Contribute to the Global Economy?

The relationship between tourism and economic growth, how does tourism affect developing countries, what are the four economic impacts of tourism, leveraging the power of tourism for online travel agencies.

Would you prefer to listen rather than read?👇🏼🎧

Tourism encompasses much more than just leisurely vacations and exploring far-off destinations. In fact, this vast industry plays a significant role in keeping the world economy thriving. 

When the world shut down due to the COVID-19 pandemic, we saw its devastating effects on the tourism industry. Airports were shut down, hotels were left empty, and online travel agencies experienced a complete halt in revenue. 

Like the rest of the world, the travel and tourism industry was in a state of limbo.

As we look to the future, it’s important to remember the power of tourism and its impacts on the global economy. In 2023, the tourism sector’s global market size is anticipated to exceed 2019 , with a market size estimated at $2.29tn.

The impact of tourism on the economy extends beyond generating income and employment. It acts as a growth engine, stimulating investment in infrastructure, promoting sustainable development, and fostering the conservation of cultural and natural heritage . This multifaceted influence demonstrates how tourism is fundamental to global economic development.

In this blog post, we’ll explore how tourism contributes to the economy and why it should be a priority for everyone.

Travel isn’t just good for the soul; it’s good for the economy. Let’s break down the numbers.

Contribution to Global GDP

Exploring the impact of tourism on the economy requires a detailed look at its contribution to the global GDP. This contribution is not only a direct reflection of tourist spending but also an indicator of how tourism stimulates the economy through job creation , infrastructure investment, and a boost to related industries.

In 2019, the travel and tourism industry accounted for 10.4% of global GDP – that’s $10 trillion! In 2022, the industry reached 7.6% of GDP .

Not only does this include the direct spending by tourists in hotels, restaurants, and attractions, but it also includes indirect spending in industries such as transportation, shopping, and entertainment.

This data indicates the industry’s resilience and potential to bounce back. The travel and tourism industry will continue to contribute to the global economy.

Job Creation

In 2022, the tourism industry supported over 22 million jobs. When people think of tourism-related jobs, they usually think of travel agents, hotel staff, and workers at tourist attractions. However, there are also millions of people around the world who work in tourism and related industries.

The Interconnectedness of the Tourism Industry with Other Industries

The tourism industry is intricately connected to a wide array of other industries. 

It’s challenging to measure tourism’s exact contributions due to the level of fragmentation within the industry. However, its actual values are expected to be far greater than reported. This is because travelers also contribute to non-travel sectors such as retail, recreation, and entertainment.

Tourism is a significant driver of economic prosperity as it contributes to job creation and spurs innovation and investments.

Given the significant impact of tourism on the global economy, it’s important to examine the relationship between tourism and economic growth.

Tourism as a Driver for Economic Growth 

Increased demand stimulates the economy by creating jobs in different sectors, from hospitality to transport which brings in more revenue and opportunities for growth within the community.

Zurab Pololikashvili, the secretary general of UNWTO , said, “ Global tourism is on track to return to pre-pandemic levels by the end of year. By investing in people and projects that make a difference, we can deliver on the sector’s potential to drive growth and opportunity for all.”

In tourism, there are jobs that are directly related to tourism and tourism spending; for example, when a tourist travels to Barcelona, they will spend money on hotels, tour guides, and activities.

But there are also those indirectly related to tourism ; for instance, when they go to a restaurant in the city or shop at a local store, they contribute to the local economy.

Boost Your OTA Revenue Now!

Discover our Business Suite for OTAs. Empower your travel agency in the global tourism market.

The Multiplier Effect of Tourism

The interconnectedness of tourism also leads to the multiplier effect, which amplifies the economic impact of tourism on a region or country. 

The Journal of Risk and Financial Management conducted a study that found “The impact of tourism activity on economic development is determined by the current multiplier mechanism created by the existing revenue-expenditure flow in the sector due to international tourism movements.” 

Tourism also has a multiplier effect on other industries . For example, suppose a tourist spends money on a hotel room. In that case, the hotel purchases goods and services from other businesses, such as food, linen, and toiletries. These businesses, in turn, purchase goods and services from other companies, and the cycle continues.

This means that the economic impact of tourism is not limited to the tourism industry but spreads across various sectors of the economy. The expenditure of international tourists on tourism can generate income that may result in new revenue streams, investments, savings, and consumption.

The Role of Online Travel Agencies in Promoting Economic Growth 

Online travel agencies play an important role in promoting economic growth and development. They help connect travelers with different hotels, flights, and activities. 

However, they don’t just help them find the right place to stay or flight to book. OTAs also provide travelers with inspiration, knowledge, and insights to help them make the best trip decisions.

Their promotional activities can fastly increase the economic growth of the regions they promote. For instance, OTAs can promote different destinations and activities they may not know. Whether it’s a destination in the countryside or a less-traveled area such as many developing countries.

In addition to traditional methods of economic growth in tourism, the importance of exploring sustainable approaches, cannot be overstated. Gain a deeper understanding of this forward-thinking practice, which includes diverse examples and effective implementation strategies, in our in-depth exploration about what is regenerative tourism .

Benefits of Tourism

Tourism provides numerous benefits to economies around the world, playing a crucial role in both local and global contexts. Here are some of the key benefits of tourism:

     Economic Growth : Tourism significantly contributes to economic growth by generating income and employment. It accounts for about 10% of global GDP and employs one in ten people worldwide​​. Tourism stimulates local economies through direct spending on goods and services, creating jobs in hotels, restaurants, and other tourism-related businesses.

     Job Creation : Tourism creates a wide range of jobs, not only in the tourism sectors such as hospitality and travel services but also in related industries like retail and transportation. In regions with high unemployment rates, tourism can be a vital source of employment​.

     Cultural Preservation : Tourism helps preserve cultural heritage by providing financial resources needed for the maintenance of cultural sites and traditions. For instance, entrance fees from tourists visiting heritage sites often fund the preservation and operation of these sites​.

     Environmental Conservation : Tourism can support environmental conservation by funding the creation and maintenance of national parks and protected areas. Tourists’ demand for natural and historical sites can lead to increased efforts to conserve these areas​​.

     Positive Social Effects : The economic benefits of tourism can lead to improved infrastructure and services, such as better roads, healthcare facilities, and education. These improvements benefit not only tourists but also local communities, enhancing the overall quality of life.

     Global Awareness and Learning : Tourism encourages global awareness and cross-cultural understanding. By interacting with different cultures, tourists and locals alike can develop a deeper appreciation for cultural diversity, fostering a sense of global community​.

When tourists spend more money when they travel, and the money they spend is reinvested into the local economy, tourism directly impacts the economy.

Tourism increases economic activity. The influx of tourists drives up local businesses’ demand for services and products, creating jobs, increasing revenue, and reducing poverty.

Direct benefits include those created by tourism-related activities such as accommodation, transport, and attractions. Indirect benefits come from supporting activities to tourism, such as construction and retailing. 

Tourism also benefits developing countries in other ways, such as improving the perception of their country on the global stage and increasing foreign investment.

Challenges and Opportunities for Online Travel Agencies in Emerging Markets

In John Lea’s book, Tourism and Developments in the Third World , he discusses how small island communities depend more on foreign tourism than bigger countries. Island tourism can be a lifeline for many people in these places, particularly regarding job creation and economic opportunities. 

However, challenges like limited infrastructure, political instability, and lack of local tourism products still exist. 

The 5 A’s of tourism – attractions, activities, accessibility, accommodation, and amenities, play a significant role in determining the success of tourism in any destination. By improving these areas, emerging markets can better leverage and capitalize on their tourism potential.

Online travel agencies can play a crucial role in driving economic growth in these markets:

• They have the potential to access untapped opportunities that are often overlooked.
• They can promote lesser-known tourist hotspots with potential. 
• They can partner with governments and local tourism stakeholders in emerging markets.
• They are more agile and better equipped to respond quickly to changing market needs.
• They can enable local players to expand their reach, open up new markets, and create economic value. 
• They can provide a platform for local businesses to showcase their products.

Case Studies of Successful Tourism Development in Developing Countries

South Africa

South Africa is an excellent example of a developing country that has successfully utilized tourism as an integral part of its economic growth plan. 

The tourism industry accounts for 3.7% of South Africa’s GDP. This is higher than the contribution of agriculture, utilities, and construction.

The country’s abundance of natural and cultural resources makes it a popular tourist destination for people worldwide. With its stunning beaches, mountains, and diverse wildlife reserves, it has become one of Africa’s most popular tourism destinations.

South African Tourism (SAT) and the Department of Tourism have aligned their strategic plan for 2020-2025 to encourage the growth and development of tourism in South Africa. This includes providing efficient marketing for tourist destinations and improving cooperation between different levels of government in managing tourism.

The accommodation industry’s total income in September 2022 increased by 79.3% compared to September 2021. Among all accommodation options, hotels experienced the most significant increase in total income , with a 118.6% rise.

Egypt is another great example of a developing country that has seen success in the tourism industry. Egypt’s tourism earnings are expected to reach $13.6 billion in 2023.

The Minister of Tourism, Ahmed Issa, aims to achieve an annual growth rate of 25% to 30% . This is part of Egypt’s plan to attract 30 million tourists by 2028. They aim to invest $30bn (30,000 rooms) to meet anticipated demand. Additionally, they plan to invest investment in customer experiences.

The focus of the Egyptian government is to offer improved tourism experiences . This includes promoting cultural heritage sites, nature-based tourism activities, and other diverse tourist attractions unique to Egypt.

India is another developing country rapidly gaining traction in the tourism industry. India’s total contribution to GDP in Travel & Tourism r anked sixth in 2022. Tourism jobs are expected to increase by 8.3% , reaching nearly 35 million employment opportunities.

The Ministry of Tourism launched the Swadesh Darshan scheme to promote theme-based tourism in India and harness its potential for development.

Their goals are to improve the local economies, generate job opportunities, promote industry skill development, increase private sector investment, and conserve local cultural and natural resources.

1. Infrastructure Development

Tourism provides the government and private sector with the revenue to invest in the infrastructure required for tourism activities . This includes the construction and renovation of roads, highways, and airports. For example, increased tourism can lead to improved access and transportation networks, which benefit the local economy and travelers alike.

2. Cultural Preservation 

Tourism also plays a role in preserving historical sites and cultural traditions. As many visitors worldwide flock to a destination to learn about its history and culture, tourism can help generate sufficient funds for cultural conservation efforts.

3. Natural Resources

Tourism can provide incentives for protecting and preserving natural resources and ecosystems. By introducing sustainable tourism practices, areas with important biodiversity can be better safeguarded against destruction while delivering economic benefits to the local community.

4. Local Entrepreneurship and Small Business Growth

The influx of visitors to a destination can also stimulate the growth of small, locally-owned businesses. Restaurants and retail stores often experience increased profits. At the same time, entrepreneurs can take advantage of new opportunities in the tourism industry.

Online travel agencies play a vital role in the tourism industry, providing the convenience of booking services with just a few clicks. With the right strategies, OTAs can leverage the power of tourism to maximize its economic impact. 

Strategies for Maximizing the Positive Economic Impact of Tourism:

There are three strategies for maximizing the positive impact of tourism: understanding the local economy, promoting responsible and sustainable tourism practices, and adapting to evolving trends in the tourism industry.

1. Understand the Local Economy. 

To better serve your clients, it’s crucial to comprehend how tourism can economically benefit various regions based on the type of travel agency you operate . This knowledge can then aid you in aligning your clients’ interests with your business goals.

For example, tourists visiting a region may stimulate local businesses and introduce new products that would otherwise not be available. This can have a ripple effect on the local economy.

2. Promoting Responsible and Sustainable Tourism Practices

The way online travel agencies advertise and promote their services based on responsible and sustainable tourism practices has changed over the years. 

OTAs can support this by promoting sustainable and ethical travel opportunities that empower local communities.

For example, an OTA may promote eco-friendly accommodations, sustainable tour operators, and local community initiatives.

3. Adapting to Evolving Trends in the Tourism Industry

Tourists often seek out new experiences, and OTAs can provide information about activities that match their interests.

For example, experiential travel, which focuses on activities such as cultural experiences and outdoor adventures, has been gaining traction in recent years.

The economic impact of tourism is enormous, and the industry has the potential to be a significant driver of global economic growth. 

OTA’s have an important role to play in the continued success of this sector, and understanding the economic impact that tourism has on their business can help them make smart decisions and continue to grow their business. Tourism affects not only these agencies but also hotels, airlines, and other related businesses. Additionally, the industry provides many opportunities for growth and development in the tourism sector. As governments worldwide strive to create more sustainable and environmentally conscious development models, the tourism industry can provide a key source of income and job opportunities.

For insights into successful tourism marketing strategies, offering valuable perspectives and case studies and, as we explore the significant economic impact of tourism, it’s also important to understand how effective campaigns in tourism can amplify this impact.

Subscribe to our newsletter

Yay you are now subscribed to our newsletter.

Marc Truyols has a degree in Tourism from the University of the Balearic Islands. Marc has extensive experience in the leisure, travel and tourism industry. His skills in negotiation, hotel management, customer service, sales and hotel management make him a strong business development professional in the travel industry.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

Related Posts

Tourism Industry Guide: Revitalizing Travel & Hospitality for the Future

28 min. St. Augustine famously said, “The world is a book, and those who don’t travel read only one page.” Centuries later, Karen Hughes turned that sentiment around to express the practical benefits of the travel and tourism industry. “It’s just a huge part of our economy”, she concluded.  Travel is both of these things. […]

Travel Management: What It Is & How It Transforms Corporate Travel

17 min. From international tech sellers to big-time pharmaceutical companies, businesses with extensive travel needs come in all sizes and industries. How do they ensure their employees have positive, safe, and budget-friendly travel experiences? The answer is effective travel management.  For businesses in the tourism industry, travel management programs and systems are an integral part […]

Sustainable Tourism Development: Protecting the Environment and Supporting Local Communities

13 min. Poor tourism practices harm the planet. It’s hard to think about that while you’re flying into the sunset and swimming with dolphins, but our travel choices often negatively impact people and wildlife. Sustainable tourism development can help mitigate and improve that.  According to the Ecotourism Global Market Report by The Business Research Company, […]

Thank you for visiting nature.com. You are using a browser version with limited support for CSS. To obtain the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Internet Explorer). In the meantime, to ensure continued support, we are displaying the site without styles and JavaScript.

• View all journals
• My Account Login
• Explore content
• About the journal
• Publish with us
• Sign up for alerts
• Open access
• Published: 31 March 2023

The benefits of tourism for rural community development

• Yung-Lun Liu 1 ,
• Jui-Te Chiang 2 &
• Pen-Fa Ko 2  

Humanities and Social Sciences Communications volume  10 , Article number:  137 ( 2023 ) Cite this article

22k Accesses

14 Citations

5 Altmetric

Metrics details

• Business and management
• Development studies

While the main benefits of rural tourism have been studied extensively, most of these studies have focused on the development of sustainable rural tourism. The role of tourism contributions to rural community development remains unexplored. Little is known about what tourism contribution dimensions are available for policy-makers and how these dimensions affect rural tourism contributions. Without a clear picture and indication of what benefits rural tourism can provide for rural communities, policy-makers might not invest limited resources in such projects. The objectives of this study are threefold. First, we outline a rural tourism contribution model that policy-makers can use to support tourism-based rural community development. Second, we address several methodological limitations that undermine current sustainability model development and recommend feasible methodological solutions. Third, we propose a six-step theoretical procedure as a guideline for constructing a valid contribution model. We find four primary attributes of rural tourism contributions to rural community development; economic, sociocultural, environmental, and leisure and educational, and 32 subattributes. Ultimately, we confirm that economic benefits are the most significant contribution. Our findings have several practical and methodological implications and could be used as policy-making guidelines for rural community development.

Similar content being viewed by others

Creativity development of tourism villages in Bandung Regency, Indonesia: co-creating sustainability and urban resilience

Eco-tourism, climate change, and environmental policies: empirical evidence from developing economies

Knowledge mapping of relative deprivation theory and its applicability in tourism research

Introduction.

In many countries, rural areas are less developed than urban areas. They are often perceived as having many problems, such as low productivity, low education, and low income. Other issues include population shifts from rural to urban areas, low economic growth, declining employment opportunities, the loss of farms, impacts on historical and cultural heritage, sharp demographic changes, and low quality of life. These issues indicate that maintaining agricultural activities without change might create deeper social problems in rural regions. Li et al. ( 2019 ) analyzed why some rural areas decline while others do not. They emphasized that it is necessary to improve rural communities’ resilience by developing new tourism activities in response to potential urban demands. In addition, to overcome the inevitability of rural decline, Markey et al. ( 2008 ) pointed out that reversing rural recession requires investment orientation and policy support reform, for example, regarding tourism. Therefore, adopting rural tourism as an alternative development approach has become a preferred strategy in efforts to balance economic, social, cultural, and environmental regeneration.

Why should rural regions devote themselves to tourism-based development? What benefits can rural tourism bring to a rural community, particularly during and after the COVID pandemic? Without a clear picture and answers to these questions, policy-makers might not invest limited resources in such projects. Understanding the contributions of rural tourism to rural community development is critical for helping government and community planners realize whether rural tourism development is beneficial. Policy-makers are aware that reducing rural vulnerability and enhancing rural resilience is a necessary but challenging task; therefore, it is important to consider the equilibrium between rural development and potential negative impacts. For example, economic growth may improve the quality of life and enhance the well-being index. However, it may worsen income inequality, increase the demand for green landscapes, and intensify environmental pollution, and these changes may impede natural preservation in rural regions and make local residents’ lives more stressful. This might lead policy-makers to question whether they should support tourism-based rural development. Thus, the provision of specific information on the contributions of rural tourism is crucial for policy-makers.

Recently, most research has focused on rural sustainable tourism development (Asmelash and Kumar, 2019 ; Polukhina et al., 2021 ), and few studies have considered the contributions of rural tourism. Sustainability refers to the ability of a destination to maintain production over time in the face of long-term constraints and pressures (Altieri et al., 2018 ). In this study, we focus on rural tourism contributions, meaning what rural tourism contributes or does to help produce something or make it better or more successful. More specifically, we focus on rural tourism’s contributions, not its sustainability, as these goals and directions differ. Today, rural tourism has responded to the new demand trends of short-term tourists, directly providing visitors with unique services and opportunities to contact other business channels. The impact on the countryside is multifaceted, but many potential factors have not been explored (Arroyo et al., 2013 ; Tew and Barbieri, 2012 ). For example, the demand for remote nature-based destinations has increased due to the fear of COVID-19 infection, the perceived risk of crowding, and a desire for low tourist density. Juschten and Hössinger ( 2020 ) showed that the impact of COVID-19 led to a surge in demand for natural parks, forests, and rural areas. Vaishar and Šťastná ( 2022 ) demonstrated that the countryside is gaining more domestic tourists due to natural, gastronomic, and local attractions. Thus, they contended that the COVID-19 pandemic created rural tourism opportunities.

Following this change in tourism demand, rural regions are no longer associated merely with agricultural commodity production. Instead, they are seen as fruitful locations for stimulating new socioeconomic activities and mitigating public mental health issues (Kabadayi et al., 2020 ). Despite such new opportunities in rural areas, there is still a lack of research that provides policy-makers with information about tourism development in rural communities (Petrovi’c et al., 2018 ; Vaishar and Šťastná, 2022 ). Although there are many novel benefits that tourism can bring to rural communities, these have not been considered in the rural community development literature. For example, Ram et al. ( 2022 ) showed that the presence of people with mental health issues, such as nonclinical depression, is negatively correlated with domestic tourism, such as rural tourism. Yang et al. ( 2021 ) found that the contribution of rural tourism to employment is significant; they indicated that the proportion of nonagricultural jobs had increased by 99.57%, and tourism in rural communities had become the leading industry at their research site in China, with a value ten times higher than that of agricultural output. Therefore, rural tourism is vital in counteracting public mental health issues and can potentially advance regional resilience, identity, and well-being (López-Sanz et al., 2021 ).

Since the government plays a critical role in rural tourism development, providing valuable insights, perspectives, and recommendations to policy-makers to foster sustainable policies and practices in rural destinations is essential (Liu et al., 2020 ). Despite the variables developed over time to address particular aspects of rural tourism development, there is still a lack of specific variables and an overall measurement framework for understanding the contributions of rural tourism. Therefore, more evidence is needed to understand how rural tourism influences rural communities from various structural perspectives and to prompt policy-makers to accept rural tourism as an effective development policy or strategy for rural community development. In this paper, we aim to fill this gap.

The remainder of this paper is organized as follows: the section “Literature review” presents the literature review. Our methodology is described in the section “Methodology”, and our results are presented in the section “Results”. Our discussion in the section “Discussion/implications” places our findings in perspective by describing their theoretical and practical implications, and we provide concluding remarks in the section “Conclusion”.

Literature review

The role of rural tourism.

The UNWTO ( 2021 ) defined rural tourism as a type of tourism in which a visitor’s experience is related to a wide range of products generally linked to nature-based activity, agriculture, rural lifestyle/culture, angling, and sightseeing. Rural tourism has been used as a valid developmental strategy in rural areas in many developed and developing countries. This developmental strategy aims to enable a rural community to grow while preserving its traditional culture (Kaptan et al., 2020 ). In rural areas, ongoing encounters and interactions between humans and nature occur, as well as mutual transformations. These phenomena take place across a wide range of practices that are spatially and temporally bound, including agriculture, forestry, fishing, hunting, farm tourism, cultural heritage preservation, and country life (Hegarty and Przezbórska, 2005 ). To date, rural tourism in many places has become an important new element of the regional rural economy; it is increasing in importance as both a strategic sector and a way to boost the development of rural regions (Polukhina et al., 2021 ). Urban visitors’ demand for short-term leisure activities has increased because of the COVID-19 pandemic (Slater, 2020 ). Furthermore, as tourists shifted their preferences from exotic to local rural tourism amid COVID-19, Marques et al. ( 2022 ) suggested that this trend is a new opportunity that should be seized, as rural development no longer relies on agriculture alone. Instead, other practices, such as rural tourism, have become opportunities for rural areas. Ironically, urbanization has both caused severe problems in rural areas and stimulated rural tourism development as an alternative means of economic revitalization (Lewis and Delisle, 2004 ). Rural tourism provides many unique events and activities that people who live in urban areas are interested in, such as agricultural festivals, crafts, historical buildings, natural preservation, nostalgia, cuisine, and opportunities for family togetherness and relaxation (Christou, 2020 ; Getz, 2008 ). As rural tourism provides visitors from urban areas with various kinds of psychological, educational, social, esthetic, and physical satisfaction, it has brought unprecedented numbers of tourists to rural communities, stimulated economic growth, improved the viability of these communities, and enhanced their living standards (Nicholson and Pearce, 2001 ). For example, rural tourism practitioners have obtained significant economic effects, including more income, more direct sales, better profit margins, and more opportunities to sell agricultural products or craft items (Everett and Slocum, 2013 ). Local residents can participate in the development of rural tourism, and it does not necessarily depend on external resources. Hence, it provides entrepreneurial opportunities (Lee et al., 2006 ). From an environmental perspective, rural tourism is rooted in a contemporary theoretical shift from cherishing local agricultural resources to restoring the balance between people and ecosystems. Thus, rural land is preserved, natural landscapes are maintained, and green consumerism drives farmers to focus on organic products, green chemistry, and value-added products, such as land ethics (Higham and Ritchie, 2001 ). Therefore, the potential contributions of rural tourism are significant and profound (Marques, 2006 ; Phillip et al., 2010 ). Understanding its contributions to rural community development could encourage greater policy-maker investment and resident support (Yang et al., 2010 ).

Contributions of rural tourism to rural community development

Maintaining active local communities while preventing the depopulation and degradation of rural areas requires a holistic approach and processes that support sustainability. What can rural tourism contribute to rural development? In the literature, rural tourism has been shown to bring benefits such as stimulating economic growth (Oh, 2005 ), strengthening rural and regional economies (Lankford, 1994 ), alleviating poverty (Zhao et al., 2007 ), and improving living standards in local communities (Uysal et al., 2016 ). In addition to these economic contributions, what other elements have not been identified and discussed (Su et al., 2020 )? To answer these questions, additional evidence is a prerequisite. Thus, this study examines the following four aspects. (1) The economic perspective: The clustering of activities offered by rural tourism stimulates cooperation and partnerships between local communities and serves as a vehicle for creating various economic benefits. For example, rural tourism improves employment opportunities and stability, local residents’ income, investment, entrepreneurial opportunities, agricultural production value-added, capital formation, economic resilience, business viability, and local tax revenue (Atun et al., 2019 ; Cheng and Zhang, 2020 ; Choi and Sirakaya, 2006 ; Chong and Balasingam, 2019 ; Cunha et al., 2020 ). (2) The sociocultural perspective: Rural tourism no longer refers solely to the benefits of agricultural production; through economic improvement, it represents a greater diversity of activities. It is important to take advantage of the novel social and cultural alternatives offered by rural tourism, which contribute to the countryside. For example, rural tourism can be a vehicle for introducing farmers to potential new markets through more interactions with consumers and other value chain members. Under such circumstances, the sociocultural benefits of rural tourism are multifaceted. These include improved rural area depopulation prevention (López-Sanz et al., 2021 ), cultural and heritage preservation, and enhanced social stability compared to farms that do not engage in the tourism business (Ma et al., 2021 ; Yang et al., 2021 ). Additional benefits are improved quality of life; revitalization of local crafts, customs, and cultures; restoration of historical buildings and community identities; and increased opportunities for social contact and exchange, which enhance community visibility, pride, and cultural integrity (Kelliher et al., 2018 ; López-Sanz et al., 2021 ; Ryu et al., 2020 ; Silva and Leal, 2015 ). (3) The environmental perspective: Many farms in rural areas have been rendered noncompetitive due to a shortage of labor, poor managerial skills, and a lack of financial support (Coria and Calfucura, 2012 ). Although there can be immense pressure to maintain a farm in a family and to continue using land for agriculture, these problems could cause families to sell or abandon their farms or lands (Tew and Barbieri, 2012 ). In addition, unless new income pours into rural areas, farm owners cannot preserve their land and its natural aspects; thus, they tend to allow their land to become derelict or sell it. In the improved economic conditions after farms diversify into rural tourism, rural communities have more money to provide environmental care for their natural scenic areas, pastoral resources, forests, wetlands, biodiversity, pesticide mitigation, and unique landscapes (Theodori, 2001 ; Vail and Hultkrantz, 2000 ). Ultimately, the entire image of a rural community is affected; the community is imbued with vitality, and farms that participate in rural tourism instill more togetherness among families and rural communities. In this study, the environmental benefits induced by rural tourism led to improved natural environmental conservation, biodiversity, environmental awareness, infrastructure, green chemistry, unspoiled land, and family land (Di and Laura, 2021 ; Lane, 1994 ; Ryu et al., 2020 ; Yang et al., 2021 ). (4) The leisure and educational perspective: Rural tourism is a diverse strategy associated with an ongoing flow of development models that commercialize a wide range of farming practices for residents and visitors. Rural territories often present a rich set of unique resources that, if well managed, allow multiple appealing, authentic, and memorable tourist experiences. Tourists frequently comment that the rural tourism experience positively contrasts with the stress and other negatively perceived conditions of daily urban life. This is reflected in opposing, compelling images of home and a visited rural destination (Kastenholz et al., 2012 ). In other words, tourists’ positive experiences result from the attractions and activities of rural tourism destinations that may be deemed sensorially, symbolically, or socially opposed to urban life (Kastenholz et al. 2018 ). These experiences are associated with the “search for authenticity” in the context of the tension between the nostalgic images of an idealized past and the demands of stressful modern times. Although visitors search for the psychological fulfillment of hedonic, self-actualization, challenge, accomplishment, exploration, and discovery goals, some authors have uncovered the effects of rural tourism in a different context. For example, Otto and Ritchie ( 1996 ) revealed that the quality of a rural tourism service provides a tourist experience in four dimensions—hedonic, peace of mind, involvement, and recognition. Quadri-Felitti and Fiore ( 2013 ) identified the relevant impact of education, particularly esthetics, versus memory on satisfaction in wine tourism. At present, an increasing number of people and families are seeking esthetic places for relaxation and family reunions, particularly amid COVID-19. Rural tourism possesses such functions; it remains a novel phenomenon for visitors who live in urban areas and provides leisure and educational benefits when visitors to a rural site contemplate the landscape or participate in an agricultural process for leisure purposes (WTO, 2020 ). Tourists can obtain leisure and educational benefits, including ecological knowledge, information about green consumerism, leisure and recreational opportunities, health and food security, reduced mental health issues, and nostalgia nurturing (Alford and Jones, 2020 ; Ambelu et al., 2018 ; Christou, 2020 ; Lane, 1994 ; Li et al., 2021 ). These four perspectives possess a potential synergy, and their effects could strengthen the relationship between rural families and rural areas and stimulate new regional resilience. Therefore, rural tourism should be understood as an enabler of rural community development that will eventually attract policy-makers and stakeholders to invest more money in developing or advancing it.

Methodology

The literature on rural tourism provides no generally accepted method for measuring its contributions or sustainability intensity. Although many statistical methods are available, several limitations remain, particularly in terms of the item generation stage and common method bias (CMB). For example, Marzo-Navar et al. ( 2015 ) used the mean and SD values to obtain their items. However, the use of the mean has been criticized because it is susceptible to extreme values or outliers. In addition, they did not examine omitted variables and CMB. Asmelash and Kumar ( 2019 ) used the Delphi method with a mean value for deleting items. Although they asked experts to suggest the inclusion of any missed variables, they did not discuss these results. Moreover, they did not assess CMB. Islam et al. ( 2021 ) used a sixteen-step process to formulate sustainability indicators but did not consider omitted variables, a source of endogeneity bias. They also did not designate a priority for each indicator. Although a methodologically sound systematic review is commonly used, little attention has been given to reporting interexpert reliability when multiple experts are used to making decisions at various points in the screening and data extraction stages (Belur et al., 2021 ). Due to the limitations of the current methods for assessing sustainable tourism development, we aim to provide new methodological insights. Specifically, we suggest a six-stage procedure, as shown in Fig. 1 .

Steps required in developing the model for analysis after obtaining the data.

Many sources of data collection can be used, including literature reviews, inferences about the theoretical definition of the construct, previous theoretical and empirical research on the focal construct, advice from experts in the field, interviews, and focus groups. In this study, the first step was to retrieve data from a critical literature review. The second step was the assessment of omitted variables to produce items that fully captured all essential aspects of the focal construct domain. In this case, researchers must not omit a necessary measure or fail to include all of the critical dimensions of the construct. In addition, the stimuli of CMB, for example, double-barreled items, items containing ambiguous or unfamiliar terms, and items with a complicated syntax, should be simplified and made specific and concise. That is, researchers should delete items contaminated by CMB. The third step was the examination of construct-irrelevant variance to retain the variances relevant to the construct of interest and minimize the extent to which the items tapped concepts outside the focal construct domain. Variances irrelevant to the targeted construct should be deleted. The fourth step was to examine intergroup consistency to ensure that there was no outlier impact underlying the ratings. The fifth step was to examine interexpert reliability to ensure rating conformity. Finally, we prioritized the importance of each variable with the fuzzy analytic hierarchy process (AHP), which is a multicriteria decision-making approach. All methods used in this study are expert-based approaches.

Selection of experts

Because this study explores the contributions of rural tourism to rural community development, it involves phenomena in the postdevelopment stage; therefore, a few characteristics are essential for determining the choice of experts. The elements used to identify the experts in this study were (1) the number of experts, (2) expertise, (3) knowledge, (4) diversity, (5) years working in this field, and 5) commitment to participation. Regarding the number of experts, Murphy-Black et al. ( 1998 ) suggested that the more participants there are, the better, as a higher number reduces the effects of expert attrition and rater bias. Taylor-Powell ( 2002 ) pointed out that the number of participants in an expert-based study depends not only on the purpose of the research but also on the diversity of the target population. Okoli and Pawlowski ( 2004 ) recommended a target number of 10–18 experts for such a purpose. Therefore, we recruited a group of 18 experts based on their stated interest in the topic and asked them to comment on our rationale concerning the rating priorities among the items. We asked them to express a degree of agreement or disagreement with each item we provided. We adopted a heterogeneous and anonymous arrangement to ensure that rater bias did not affect this study. The 18 experts had different backgrounds, which might have made it easier for them to reach a consensus objectively. We divided the eighteen experts into three subgroups: (1) at least six top managers from rural tourism businesses, all of whom had been in the rural tourism business for over 10 years; (2) at least six academics who taught subjects related to tourism at three different universities in Taiwan; and (3) at least six government officials involved in rural development issues in Taiwan.

Generating items to represent the construct

Step 1: data collection.

Data collection provides evidence for investigation and reflects the construct of interest. While there is a need to know what rural tourism contributes, previous studies have provided no evidence for policy-makers to establish a rural community strategy; thus, it is essential to use a second source to achieve this aim. We used a literature review for specific topics; the data we used were based on the findings being presented in papers on rural tourism indexed in the SSCI (Social Sciences Citation Index) and SCIE (Science Citation Index Expanded). In this study, we intended to explore the role of rural tourism and its contributions to rural development. Therefore, we explored the secondary literature on the state of the questions of rural development, sustainable development, sustainability indicators, regional resilience, farm tourism, rural tourism, COVID-19, tourist preferences, and ecotourism using terms such as land ethics, ecology, biodiversity, green consumerism, environmentalism, green chemistry, community identity, community integration, community visibility, and development goals in an ad hoc review of previous studies via Google Scholar. Based on the outcomes of this first data collection step, we generated thirty-three subattributes and classified them into four domains.

Step 2: Examine the face validity of omitted variables and CMB

Face validity is defined as assessing whether a measurement scale or questionnaire includes all the necessary items (Dempsey and Dempsey, 1992 ). Based on the first step, we generated data subattributes from our literature review. However, there might have been other valuable attributes or subattributes that were not considered or excluded. Therefore, our purposes for examining face validity were twofold. First, we assessed the omitted variables, defined as the occurrence of crucial aspects or facets that were omitted (Messick, 1995 ). These comprise a threat to construct validity that, if ignored by researchers, might result in unreliable findings. In other words, face validity is used to distinguish whether the researchers have adequately captured the full dimensions of the construct of interest. If not, the evaluation instrument or model is deficient. However, the authors found that most rural tourism studies have not assessed the issue of omitted variables (An and Alarcon, 2020 ; Lin, 2022 ). Second, we mitigated the CMB effect. In a self-report survey, it is necessary to provide a questionnaire without CMB to the targeted respondents, as CMB affects respondent comprehension. Therefore, we assessed item characteristic effects, item context effects, and question response process effects. These three effects are related to the respondents’ understanding, retrieval, mood, affectivity, motivation, judgment, response selection, and response reporting (Podsakoff et al., 2003 ). Specifically, items containing flaws from these three groups in a questionnaire can seriously influence an empirical investigation and potentially result in misleading conclusions. We assessed face validity by asking all the experts to scrutinize the content items that we collected from the literature review and the questionnaire that we drafted. The experts could then add any attribute or subattribute they thought was essential that had been omitted. They could also revise the questionnaire if CMB were embedded. We added the new attributes or subattributes identified by the experts to those collected from the literature review.

Step 3: Examine interexpert consensus for construct-irrelevant variances

After examining face validity, we needed to rule out items irrelevant to the construct of interest; otherwise, the findings would be invalid. We examined the interexpert consensus to achieve this aim. The purpose was to estimate the experts’ ratings of each item. In other words, interexpert consensus assesses the extent to which experts make the same ratings (Kozlowski and Hattrup, 1992 ; Northcote et al., 2008 ). In prior studies, descriptive statistics have often been used to capture the variability among individual characteristics, responses, or contributions to the subject group (Landeta, 2006 ; Roberson et al., 2007 ). Many expert-based studies have applied descriptive statistics to determine consensus and quantify its degree (Paraskevas and Saunders, 2012 ; Stewart et al., 2016 ). Two main groups of descriptive statistics, central tendencies (mode, mean, and median) and level of dispersion (standard deviation, interquartile, and coefficient of variation), are commonly used when determining consensus (Mukherjee et al., 2015 ). Choosing the cutoff point of interexpert consensus was critical because we used it as a yardstick for item retention and its value can also be altered by a number on the Likert scale (Förster and von der Gracht, 2014 ). In the case of a 5-point Likert scale, the coefficient of variation (CV) is used to measure interexpert consensus. Hence, CV ≤ 0.3 indicated high consensus (Zinn et al., 2001 ). In addition, based on the feedback obtained from the expert panel, we used standard deviation (SD) as another measurement to assess the variation in our population. Henning and Jordaan ( 2016 ) indicate that SD ≤ 1 represents a high level of consensus, meaning that it can act as a guideline for cutoff points. In addition, following Vergani et al. ( 2022 ), we used the percentage agreement (% AGR) to examine interexpert consensus. If the responses reached ≧ 70% 4 and 5 in the case of a 5-point Likert scale, it indicated that the item had interexpert consensus; thus, we could retain it. Moreover, to avoid the impact of outliers, we used the median instead of the mean as another measurement. Items had a high consensus if their median value was ≥4.00 (Rice, 2009 ). Considering these points, we adopted % AGR, median, SD, and CV to examine interexpert consensus.

Step 4: Examine intergroup consistency

In this expert-based study, the sample size was small. Any rater bias could have caused inconsistency among the subgroups of experts; therefore, we needed to examine the effect of rater bias on intergroup consistency. When the intergroup ratings showed substantially different distributions, the aggregated data were groundless. Dajani et al. ( 1979 ) remarked that interexpert consensus is meaningless if the consistency of responses in a study is not reached, as it means that any rater bias could distort the median, SD, or CV. Most studies have used one-way ANOVA to determine whether there is a significant difference between the expected and observed frequency in three or more categories. However, this method is based on large sample size and normal distribution. In the case of expert-based studies, the expert sample size is small, and the assessment distribution tends to be skewed. Thus, we used the nonparametric test instead of one-way ANOVA for consistency measurement (Potvin and Roff, 1993 ). We used the Kruskal‒Wallis test (K–W) to test the intergroup consistency among the three subgroups of experts. The purpose of the K–W test is to determine whether there are significant differences among three or more subgroups regarding the ratings of the domains (Huck, 2004 ). The judgment criteria in the K-W test depended on the level of significance, and we set the significance level at p  < 0.05 (Love and Irani, 2004 ), with no significant differences among groups set at p  > 0.05 (Loftus et al., 2000 ; Rice, 2009 ). We used SPSS to conduct the K–W test to assess intergroup consistency in this study.

Step 5: Examine interexpert reliability

Interexpert reliability, on the one hand, is usually defined as the proportion of systematic variance to the total variance in ratings (James et al., 1984 ). On the other hand, interexpert reliability estimation is not concerned with the exact or absolute value of ratings. Rather, it measures the relative ordering or ranking of rated objects. Thus, interexpert reliability estimation concerns the consistency of ratings (Tinsley and Weiss, 1975 ). If an expert-based study did not achieve interexpert reliability, we could not trust its analysis (Singletary, 1994 ). Thus, we examined interexpert reliability in this expert-based study. Many methods are available in the literature for measuring interexpert reliability, but there seems to be little consensus on a standard method. We used Kendall’s W to assess the reliability among the experts for each sample group (Goetz et al., 1994 ) because it was available for any sample size or ordinal number. If W was 1, all the experts were unanimous, and each had assigned the same order to the list of objects or concerns. As Spector et al. ( 2002 ) and Schilling ( 2002 ) suggested, reliabilities well above the recommended value of .70 indicate sufficient internal reliability. In this study, there was a strong consensus when W  > 0.7. W  > 0.5 represented a moderate consensus; and W  < 0.3 indicated weak interexpert agreement (Schmidt et al., 2001 ). To measure Kendall’s W , we used SPSS 23 to assess interexpert reliability.

Step 6: Examine the fuzzy analytic hierarchy process

After examining face validity, interexpert consensus, intergroup consistency, and interexpert reliability, we found that the aggregated items were relevant, authentic, and reliable in relation to the construct of interest. To provide policy-makers with a clear direction regarding which contributions are more or less important, we scored each attribute and subattribute using a multicriteria decision-making technique. Fuzzy AHP is a well-known decision-making tool for modeling unstructured problems. It enables decision-makers to model a complex issue in a hierarchical structure that indicates the relationships between the goal, criteria, and subcriteria on the basis of scores (Park and Yoon, 2011 ). The fuzzy AHP method tolerates vagueness and ambiguity (Mikhailov and Tsvetinov, 2004 ). In other words, fuzzy AHP can capture a human’s appraisal of ambiguity when considering complex, multicriteria decision-making problems (Erensal et al., 2006 ). In this study, we used Power Choice 2.5 software to run fuzzy AHP, determine weights, and develop the impact structure of rural tourism on sustainable rural development.

Face validity

To determine whether we had omitted variables, we asked all 18 experts to scrutinize our list of four attributes and 33 subattributes for omitted variables and determine whether the questionnaire contained any underlying CMB. We explained the meaning of omitted variables, the stimuli of CMB, and the two purposes of examining face validity to all the experts. In their feedback, the eighteen experts added one item as an omitted variable: business viability. The experts suggested no revisions to the questionnaire we had drafted. These results indicated that one omitted variable was revealed and that our prepared questionnaire was clear, straightforward, and understandable. The initially pooled 34 subattributes represented the construct of interest, and all questionnaires used for measurement were defendable in terms of CMB. The biasing effects of method variance did not exist, indicating that the threat of CMB was minor.

Interexpert consensus

In this step, we rejected any items irrelevant to the construct of interest. Consensus measurement played an essential role in aggregating the experts’ judgments. This study measured the AGR, median, SD, and CV. Two items, strategic alliance (AGR = 50%) and carbon neutrality (AGR = 56%) were rated < 70%, and we rejected them accordingly. These results are shown in Table 1 . The AGR, median, SD, and CV values were all greater than the cutoff points, thus indicating that the majority of experts in this study consistently recognized high values and reached a consensus for the rest of the 32 subattributes. Consequently, the four attributes and 32 subattributes remained and were initially identified as determinants for further analysis.

Intergroup consistency and interexpert reliability

In this study, with scores based on a 5-point Likert scale, we conducted the K–W test to assess intergroup differences for each subattribute. Based on the outcomes, the K–W test yielded significant results for all 32 subattributes; all three groups of experts reached consistency at p  > 0.05. This result indicated that no outlier or extreme value underlay the ratings, and therefore, intergroup consistency was reached. Finally, we measured interexpert reliability with Kendall’s W . The economic perspective was W  = 0.73, the sociocultural perspective was W  = 0.71, the environmental perspective was W  = 0.71, and the leisure and educational perspective was W  = 0.72. These four groups of W were all ≧ 0.7, indicating high reliability for the ranking order and convergence judged by all subgroup experts. These results are shown in Table 2 .

The hierarchical framework

The results of this study indicate that rural tourism contributions to rural community development comprise four attributes and thirty-two subattributes. The economic perspective encompasses nine subattributes and is weighted at w  = 0.387. In addition, rural tourism has long been considered a possible means of sociocultural development and regeneration of rural areas, particularly those affected by the decline in traditional rural

activities, agricultural festivals, and historical buildings. According to the desired benefits, the sociocultural perspective encompasses nine subattributes and is weighted at w  = 0.183. Moreover, as rural tourism can develop on farms and locally, its contribution to maintaining and enhancing environmental regeneration and protection is significant. Therefore, an environmental perspective can determine rural tourism’s impact on pursuing environmental objectives. Our results indicate that the environmental perspective encompasses seven subattributes and that its weight is w  = 0.237. Furthermore, the leisure and educational perspective indicates the attractiveness of rural tourism from visitors’ viewpoint and their perception of a destination’s value and contributions. These results show that this perspective encompasses seven subattributes and is weighted at w  = 0.193. This specific contribution model demonstrates a 3-level hierarchical structure, as shown in Fig. 2 . The scores for each criterion could indicate each attribute’s importance and explain the priority order of the groups. Briefly, the critical sequence of each measure in the model at Level 2 is as follows: economic perspective > environmental perspective > leisure and educational perspective > sociocultural perspective. Since scoring and ranking were provided by 18 experts from three different backgrounds and calculated using fuzzy AHP, our rural tourism contribution model is established. It can provide policy-makers with information on the long-term benefits and advantages following the completion of excellent community development in rural areas.

The priority index of each attribute and sub-attribute.

Discussion/Implications

In the era of sustainable rural development, it is vital to consider the role of rural tourism and how research in this area shapes access to knowledge on rural community development. This study provides four findings based on the increasing tendency of policy-makers to use such information to shape their policy-making priorities. It first shows that the demand for rural tourism has soared, particularly during COVID-19. Second, it lists four significant perspectives regarding the specific contributions of rural tourism to rural community development and delineates how these four perspectives affect rural tourism development. Our findings are consistent with those of prior studies. For example, geography has been particularly important in the rural or peripheral tourism literature (Carson, 2018 ). In terms of the local geographical context, two contributions could be made by rural tourism. The first stems from the environmental perspective. When a rural community develops rural tourism, environmental protection awareness is increased, and the responsible utilization of natural resources is promoted. This finding aligns with Lee and Jan ( 2019 ). The second stems from the leisure and educational perspective. The geographical context of a rural community, which provides tourists with geographical uniqueness, advances naturally calming, sensory-rich, and emotion-generating experiences for tourists. These results suggest that rural tourism will likely positively impact tourists’ experience. This finding is consistent with Kastenhoz et al. ( 2020 ). Third, although expert-based approaches have considerable benefits in developing and testing underlying phenomena, evidence derived from interexpert consensus, intergroup consistency, and interexpert reliability has been sparse. This study provides such evidence. Fourth, this research shows that rural tourism makes four main contributions, economic, sociocultural, environmental, leisure, and educational, to rural community development. Our results show four key indicators at Level 2. The economic perspective is strongly regarded as the most important indicator, followed by the environmental perspective, leisure and educational perspective, and sociocultural perspective, which is weighted as the least important. The secondary determinants of contributions have 32 subindicators at Level 3: each was identified and assigned a different weight. These results imply that the attributes or subattributes with high weights have more essential roles in understanding the contributions of rural tourism to rural community development. Policy-makers can use these 32 subindicators to formulate rural tourism development policies or strategies.

This study offers the following five practical implications for policymakers and rural communities:

First, we argue that developing rural tourism within a rural community is an excellent strategy for revitalization and countering the effects of urbanization, depopulation, deforestation, and unemployment.

Second, our analytical results indicate that rural tourism’s postdevelopment contribution is significant from the economic, sociocultural, environmental, leisure, and educational perspectives, which is consistent with Lee and Jan ( 2019 ).

Third, there is an excellent opportunity to build or invest more in rural tourism during COVID-19, not only because of the functions of rural tourism but also because of its timing. Many prior studies have echoed this recommendation. For example, Yang et al. ( 2021 ) defined rural tourism as the leading industry in rural areas, offering an output value ten times higher than that of agriculture in China. In addition, rural tourism has become more attractive to urban tourists amid COVID-19. Vaishar and Šťastná ( 2022 ) suggested that the COVID-19 pandemic created a strong demand for rural tourism, which can mitigate threats to public mental health, such as anxiety, depression, loneliness, isolation, and insomnia. Marques et al. ( 2022 ) showed that tourists’ preference for tourism in rural areas increased substantially during COVID-19.

Fourth, the contributions of this study to policy development are substantial. The more focused rural tourism in rural areas is, the more effective revitalization becomes. This finding highlights the importance of such features in developing rural tourism to enhance rural community development from multiple perspectives. This finding echoes Zawadka et al. ( 2022 ); i.e., policy-makers should develop rural tourism to provide tourists with a safe and relaxed environment and should not ignore the value of this model for rural tourism.

Fifth, our developed model could drive emerging policy issues from a supporting perspective and provide policy-makers with a more comprehensive overview of the development of the rural tourism sector, thus enabling them to create better policies and programs as needed. For example, amid COVID-19, rural tourism created a safe environment for tourists, mainly by reducing their fears of contamination (Dennis et al., 2021 ). This novel contribution that rural tourism destinations can provide to residents and visitors from other places should be considered and built into any rural community development policy.

This study also has the following four methodological implications for researchers:

First, it addresses methodological limitations that still impede tourism sustainability model development. Specifically, we suggest a six-stage procedure as the guideline; it is imperative that rural tourism researchers or model developers follow this procedure. If they do not, their findings tend to be flawed.

Second, to ensure that collected data are without extraneous interference or differences via subgroups of experts, the assessment of intergroup consistency with the K–W test instead of one-way ANOVA is proposed, especially in small samples and distribution-free studies.

Third, providing interexpert reliability evidence within expert-based research is critical; we used Kendall’s W to assess the reliability among experts for each sample group because it applies to any sample size and ordinal number.

Finally, we recommend using fuzzy AHP to establish a model with appropriate indicators for decision-making or selection. This study offers novel methodological insights by estimating a theoretically grounded and empirically validated rural tourism contribution model.

There are two limitations to this study. First, we examine all subattributes by interexpert consensus to delete construct-irrelevant variances that might receive criticism for their lack of statistical rigor. Future studies can use other rigorous methods, such as AD M( j ) or rWG ( j ) , interexpert agreement indices to assess and eliminate construct-irrelevant variances. Second, we recommend maximizing rural tourism contributions to rural community development by using the general population as a sample to identify any differences. More specifically, we recommend using Cronbach’s alpha, confirmatory factor analysis (CFA), and structural equation modeling (SEM) to test the overall reliability and validity of the data and results. It is also necessary to provide results for goodness-of-fit measures—e.g., the goodness-of-fit index (GFI), adjusted goodness-of-fit index (AGFI), comparative fit index (CFI), normed fit index (NFI), Tucker–Lewis Index (TLI), standardized root mean square residual (SRMR), or root mean square error of approximation (RMSEA).

Numerous empirical studies have illustrated how rural tourism can positively and negatively affect the contexts in rural areas where it is present. This study reveals the positive contributions of rural tourism to rural community development. The findings show that using rural tourism as a revitalization strategy is beneficial to nonurban communities in terms of their economic, sociocultural, environmental, and leisure and educational development. The contribution from the economic perspective is particularly important. These findings suggest that national, regional, and local governments or community developers should make tourism a strategic pillar in their policies for rural development and implement tourism-related development projects to gain 32 benefits, as indicated in Fig. 2 . More importantly, rural tourism was advocated and proved effective for tourists and residents to reduce anxiety, depression, or insomnia during the COVID-19 pandemic. With this emerging contribution, rural tourism is becoming more critical to tourists from urban areas and residents involved in rural community development. With this model, policy-makers should not hesitate to develop or invest more in rural communities to create additional tourism-based activities and facilities. As they could simultaneously advance rural community development and public mental health, policy-makers should include these activities among their regional resilience considerations and treat them as enablers of sustainable rural development. We conclude that amid COVID-19, developing rural tourism is an excellent strategy for promoting rural community development and an excellent alternative that could counteract the negative impacts of urbanization and provide stakeholders with more positive interests. The proposed rural tourism contribution model also suggests an unfolding research plan.

Data availability

The datasets generated and/or analyzed during the current study are available from the corresponding author on reasonable request.

Alford P, Jones R (2020) The lone digital tourism entrepreneur: Knowledge acquisition and collaborative transfer. Tour Manag 81:104–139. https://doi.org/10.1016/j.tourman.2020.104139

Article   Google Scholar  

Altieri MA, Farrell JG, Hecht SB, Liebman M, Magdoff F et al (2018) The agroecosystem: determinants, resources, processes, and sustainability. Agroecology 41–68. https://doi.org/10.1201/9780429495465-3

Ambelu G, Lovelock B, Tucker H (2018) Empty bowls: conceptualising the role of tourism in contributing to sustainable rural food security. J Sustain Tour 26(10):1749–1765. https://doi.org/10.1080/09669582.2018.1511719

An W, Alarcon S (2020) How can rural tourism be sustainable? A systematic review. Sustainability 12(18):7758. https://doi.org/10.3390/su12187758

Arroyo C, Barbieri C, Rich SR (2013) Defining agritourism: a comparative study of stakeholders’ perceptions in Missouri and North Carolina. Tour Manag 37:39–47. https://doi.org/10.1016/j.tourman.2012.12.007

Asmelash AG, Kumar S (2019) Assessing progress of tourism sustainability: Developing and validating sustainability indicators. Tour Manag 71:67–83. https://doi.org/10.1016/j.tourman.2018.09.020

Atun RA, Nafa H, Türker ÖO (2019) Envisaging sustainable rural development through ‘context-dependent tourism’: case of Northern Cyprus. Environ Dev Sustain 21:1715–1744. https://doi.org/10.1007/s10668-018-0100-8

Belur J, Tompson L, Thornton A, Simon M (2021) Interrater reliability in systematic review methodology: exploring variation in coder decision-making. Sociol Methods Res 50(2):837–865. https://doi.org/10.1177/0049124118799372

Article   MathSciNet   Google Scholar  

Carson DA (2018) Challenges and opportunities for rural tourism geographies: a view from the ‘boring’ peripheries. Tour Geogr 20(4):737–741. https://doi.org/10.1080/4616688.2018.1477173

Cheng L, Zhang J (2020) Is tourism development a catalyst of economic recovery following natural disaster? An analysis of economic resilience and spatial variability. Curr Issues Tour 1–22. https://doi.org/10.1080/13683500.2019.1711029

Choi H-SC, Sirakaya E (2006) Sustainability indicators for managing community tourism. Tour Manag 27(6):1274–1289. https://doi.org/10.1016/j.tourman.2005.05.018

Chong KY, Balasingam AS (2019) Tourism sustainability: economic benefits and strategies for preservation and conservation of heritage sites in Southeast Asia. Tour Rev 74(2):268–279. https://doi.org/10.1108/TR-11-2017-0182

Christou PA (2020) Tourism experiences as the remedy to nostalgia: conceptualizing the nostalgia and tourism nexus. Curr Issues Tour 23(5):612–625. https://doi.org/10.1080/13683500.2018.1548582

Coria J, Calfucura E (2012) Ecotourism and the development of indigenous communities: the good, the bad and the ugly. Ecol Econ 73(15):47–55. https://doi.org/10.1016/j.ecolecon.2011.10.024

Cunha C, Kastenholz E, Carneiro MJ (2020) Entrepreneurs in rural tourism: do lifestyle motivations contribute to management practices that enhance sustainable entrepreneurial ecosystems? J Hosp Tour Manag 44:215–226. https://doi.org/10.1016/j.jhtm.2020.06.007

Dajani JS, Sincoff MZ, Talley WK (1979) Stability and agreement criteria for the termination of Delphi studies. Technol Forecast Soc Change 13(1):83–90. https://doi.org/10.1016/0040-1625(79)90007-6

Dempsey PA, Dempsey AD (1992) Nursing research with basic statistical applications, 3rd edn. Jones and Bartlett, Boston

Google Scholar  

Dennis D, Radnitz C, Wheaton MG (2021) A perfect storm? Health anxiety, contamination fears, and COVID-19: lessons learned from past pandemics and current challenges. Int J Cogn Ther 14:497–513. https://doi.org/10.1007/s41811-021-00109-7

Article   PubMed   PubMed Central   Google Scholar  

Di TF, Laura M (2021) How green possibilities can help in a future sustainable conservation of cultural heritage in Europe. Sustainability 13(7):3609. https://doi.org/10.3390/su13073609

Erensal YC, ncan TÖ, Demircan ML (2006) Determining key capabilities in technology management using fuzzy analytic hierarchy process: a case study of Turkey. Inf Sci 176(18):2755–2770. https://doi.org/10.1016/j.ins.2005.11.004

Everett S, Slocum SL (2013) Food and tourism: an effective partnership? A UK-based review. J Sustain Tour 21(6):789–809. https://doi.org/10.1080/09669582.2012.741601

Förster B, von der Gracht H (2014) Assessing Delphi panel composition for strategic foresight—a comparison of panels based on company-Internal and external participants. Technol Forecast Soc Change 84:215–229. https://doi.org/10.1016/.techfore.2013.07.012

Getz D (2008) Event tourism: definition, evolution and research. Tour Manag 29(3):403–428. https://doi.org/10.1016/j.tourman.2007.07.017

Goetz CG, Stebbins GT, Shale HM, Lang AE, Chernik DA, Chmura TA, Ahlskog JE, Dorflinger EE (1994) Utility of an objective dyskinesia rating scale for Parkinson’s disease: inter- and intrarater reliability assessment. Mov Disord 9(4):390–394. https://doi.org/10.1002/mds.870090403

Article   CAS   PubMed   Google Scholar  

Hegarty C, Przezborska L (2005) Rural and agri-tourism as a tool for reorganizing rural areas in old and new member states—a comparison study of Ireland and Poland. Int J Tour Res 7(2):63–77. https://doi.org/10.1002/jtr.513

Henning JIF, Jordaan H (2016) Determinants of financial sustainability for farm credit applications—a Delphi study. Sustainability 8(1):77. https://doi.org/10.3390/su8010077

Higham JES, Ritchie B (2001) The evolution of festivals and other events in rural Southern New Zealand. Event Manag 7(1):39–49. https://doi.org/10.3727/152599501108751461

Huck SW (2004) Reading statistics and research, 4th edn. Allyn and Bacon, Boston

Islam MS, Lovelock B, Coetzee WJL (2021) Liberating sustainability indicators: developing and implementing a community-operated tourism sustainability indicator system in Boga Lake, Bangladesh. J Sustain Tour. https://doi.org/10.1080/09669582.2021.1928147

James LR, Demaree RG, Wolf G (1984) Estimating within-group interrater reliability with and without response bias. J Appl Psychol 69(1):322–327. https://doi.org/10.1037/0021-9010.69.1.85

Juschten M, Hössinger R (2020) Out of the city - But how and where? A mode-destination choice model for urban–rural tourism trips in Austria. Curr Issues Tour 24(10):1465–1481. https://doi.org/10.1080/13683500.2020.1783645

Kabadayi S, O’Connor G, Tuzovic S (2020) Viewpoint: the impact of coronavirus on service ecosystems as service mega-disruptions. J Serv Mark 34(6):809–817. reurl.cc/oen0lM

Kaptan AÇ, Cengı̇z TT, Özkök F, Tatlı H (2020) Land use suitability analysis of rural tourism activities: Yenice, Turkey. Tour Manag 76:103949. https://doi.org/10.1016/j.tourman.2019.07.003

Kastenholz E, Carneiro MJ, Marques CP, Lima J (2012) Understanding and managing the rural tourism experience—the case of a historical village in Portugal. Tour Manag Perspect 4:207–214. https://doi.org/10.1016/j.tmp.2012.08.009

Kastenholz E, Carneiro M, Marques CP, Loureiro SMC (2018) The dimensions of rural tourism experience: impacts on arousal, memory and satisfaction. J Travel Tour Mark 35(2):189–201. https://doi.org/10.1080/10548408.2017.1350617

Kastenhoz E, Marques CP, Carneiro MJ (2020) Place attachment through sensory-rich, emotion-generating place experiences in rural tourism. J Destin Mark Manage 17:100455. https://doi.org/10.1016/j.jdmm.2020.100455

Kelliher F, Rein L, Johnson TG, Joppe M (2018) The role of trust in building rural tourism micro firm network engagement: a multi-case study. Tour Manag 68:1–12. https://doi.org/10.1016/j.tourman.2018.02.014

Kozlowski SW, Hattrup K (1992) A disagreement about within-group agreement: disentangling issues of consistency versus consensus. J Appl Psychol 77(2):161–167. https://doi.org/10.1037/0021-9010.77.2.161

Landeta J (2006) Current validity of the Delphi method in social sciences. Technol Forecast Soc Change 73(5):467–482. https://doi.org/10.1016/j.techfore.2005.09.002

Lankford SV (1994) Attitudes and perceptions toward tourism and rural regional development. J Travel Res 32(3):35–43. https://doi.org/10.1177/004728759403200306

Lane B (1994) What is rural tourism? J Sustain Tour 2(1&2):7–21. https://doi.org/10.1080/09669589409510680

Lee TH, Jan FH (2019) Can community-based tourism contribute to sustainable development? Evidence from residents perceptions of the sustainability. Tour Manag 70:368–380. https://doi.org/10.1016/j.tourman.2018.09.003

Lee J, Árnason A, Nightingale A, Shucksmith M (2006) Networking: Social capital and identities in European rural development. Sociol Rural 45(4):269–283. https://doi.org/10.1111/j.1467-9523.2005.00305.x

Lewis JB, Delisle L (2004) Tourism as economic self-development in rural Nebraska: a case study. Tour Anal 9(3):153–166. https://doi.org/10.3727/108354204278122

Li Y, Westlund H, Liu Y (2019) Why some rural areas decline while some others not: an overview of rural evolution in the world. J Rural Stud 68:135–143. https://doi.org/10.1016/j.jrurstud.2019.03.003

Li Z, Zhang X, Yang K, Singer R, Cui R (2021) Urban and rural tourism under COVID-19 in China: research on the recovery measures and tourism development. Tour Rev 76(4):718–736. https://doi.org/10.1108/TR-06-2020-0357

Lin CL (2022) Evaluating the urban sustainable development strategies and common suited paths considering various stakeholders. Environ Dev Sustain 1–42. https://doi.org/10.1007/s10668-021-02021-8

Liu CY, Doub XT, Lia JF, Caib LA (2020) Analyzing government role in rural tourism development: an empirical investigation from China. J Rural Stud 79:177–88. https://doi.org/10.1016/j.jrurstud.2020.08.046

Loftus IM, Naylor AR, Goodall SM, Crowther LJ, Bell PRF, Thompson MM (2000) Increased matrix metalloproteinase-9 activity in unstable carotid plaques: a potential role in acute plaque disruption. Stroke 31(1):40–47. https://doi.org/10.1161/01.STR.31.1.40

López-Sanz JM, Penelas-Leguía A, Gutiérrez-Rodríguez P, Cuesta-Valiño P (2021) Sustainable development and rural tourism in depopulated areas. Land 10(9):985. https://doi.org/10.3390/land10090985

Love PED, Irani Z (2004) An exploratory study of information technology evaluation and benefits management practices of SMEs in the construction industry. Inf Manag 42(1):227–242. https://doi.org/10.1016/j.im.2003.12.011

Ma X, Wang R, Dai M, Ou Y (2021) The influence of culture on the sustainable livelihoods of households in rural tourism destinations. J Sustain Tour 29:1235–1252. https://doi.org/10.1080/09669582.2020.1826497

Markey S, Halseth G, Manson D (2008) Challenging the inevitability of rural decline: advancing the policy of place in northern British Columbia. J Rural Stud 24:409–421. https://doi.org/10.1016/j.jrurstud.2008.03.012

Marques H (2006) Searching for complementarities between agriculture and tourism—the demarcated wine-producing regions of Northern Portugal. Tour Econ 12(1):147–155. https://doi.org/10.5367/000000006776387141

Marques CP, Guedes A, Bento R (2022) Rural tourism recovery between two COVID-19 waves: the case of Portugal. Curr Issues Tour 25(6):857–863. https://doi.org/10.1080/13683500.2021.1910216

Marzo-Navar M, Pedraja-Iglesia M, Vinzon L (2015) Sustainability indicators of rural tourism from the perspective of the residents. Tour Geogr 17(4):586–602. https://doi.org/10.1080/14616688.2015.1062909

Messick S (1995) Validity of psychological assessment: Validation of inferences from persons’ responses and performances as scientific inquiry into score meaning. Am Psychol 50(9):741–749. https://doi.org/10.1037/0003-066X.50.9.741

Mikhailov L, Tsvetinov P (2004) Evaluation of services using a fuzzy analytic hierarchy process. Appl Soft Comput 5(1):23–33. https://doi.org/10.1016/j.asoc.2004.04.001

Mukherjee N, Huge J, Sutherland WJ, McNeill J, Van Opstal M, Dahdouh-Guebas F, Koedam N (2015) The Delphi technique in ecology and biological conservation: applications and guidelines. Methods. Ecol Evol 6(9):1097–1109. https://doi.org/10.1111/2041-210X.12387

Murphy-Black T, Lamping D, McKee M, Sanderson C, Askham J, Marteau T (1998) CEM and their use in clinical guideline development—factors which influence the process and outcome of CDMs. Health Technol Assess 2(3):1–88

Nicholson RE, Pearce DG (2001) Why do people attend events: a comparative analysis of visitor motivations at four south island events. J Travel Res 39:449–460. https://doi.org/10.1177/004728750103900412

Northcote J, Lee D, Chok S, Wegner A (2008) An email-based Delphi approach to tourism program evaluation: involving stakeholders in research design. Curr Issues Tour 11(3):269–279. https://doi.org/10.1080/13683500802140315

Oh CO (2005) The contribution of tourism development to economic growth in the Korean economy. Tour Manag 26(1):39–44. https://doi.org/10.1016/j.tourman.2003.09.014

Okoli C, Pawlowski SD (2004) The Delphi method as a research tool: an example, design considerations and applications. Inf Manag 42(1):15–29. https://doi.org/10.1016/j.im.2003.11.002

Otto JE, Ritchie JRB (1996) The service experience in tourism. Tour Manag 17(3):165–174

Paraskevas A, Saunders MNK (2012) Beyond consensus: an alternative use of Delphi enquiry in hospitality research. Int J Contemp Hosp Manag 24(6):907–924. https://doi.org/10.1108/09596111211247236

Park DB, Yoon YS (2011) Developing sustainable rural tourism evaluation indicators. Int J Tour Res 13(5):401–415. https://doi.org/10.1002/jtr.804

Petrovi´c MD, Vujko A, Gaji´c T, Vukovi´c DB, Radovanovi´c M, Jovanovi´c JM, Vukovi´c N (2018) Tourism as an approach to sustainable rural development in post-socialist countries: a comparative study of Serbia and Slovenia. Sustainability 10(1):54. https://doi.org/10.3390/su10010054

Phillip S, Hunter C, Blackstock K (2010) A typology for defining agritourism. Tour Manag 31(6):754–758. https://doi.org/10.1016/j.tourman.2009.08.001

Podsakoff PM, MacKenzie SB, Lee JY et al. (2003) Common method biases in behavioral research: a critical review of the literature and recommended remedies. J Appl Psychol 88:879–903. https://doi.org/10.1037/0021-9010.88.5.879

Article   PubMed   Google Scholar  

Polukhina A, Sheresheva M, Efremova M, Suranova O, Agalakova O, Antonov-Ovseenko A (2021) The concept of sustainable rural tourism development in the face of COVID-19 crisis: evidence from Russia. J Risk Financ Manag 14:38. https://doi.org/10.3390/jrfm14010038

Potvin C, Roff DA (1993) Distribution-free and robust statistical methods: viable alternatives to parametric statistics. Ecology 74(6):1617–1628. https://doi.org/10.2307/1939920

Quadri-Felitti DL, Fiore AM (2013) Destination loyalty: effects of wine tourists’ experiences, memories, and satisfaction on intentions. Tour Hosp Res 13(1):47–62. https://doi.org/10.1177/1467358413510017

Ram Y, Collins-Kreiner N, Gozansky E, Moscona G, Okon-Singer H (2022) Is there a COVID-19 vaccination effect? A three-wave cross-sectional study. Curr Issues Tour 25(3):379–386. https://doi.org/10.1080/13683500.2021.1960285

Rice K (2009) Priorities in K-12 distance education: a Delphi study examining multiple perspectives on policy, practice, and research. Educ Technol Soc 12(3):163–177

Roberson QM, Sturman MC, Simons TL (2007) Does the measure of dispersion matter in multilevel research? Organ Res Methods 10(4):564–588. https://doi.org/10.1177/1094428106294746

Ryu K, Roy PA, Kim H, Ryu H (2020) The resident participation in endogenous rural tourism projects: a case study of Kumbalangi in Kerala, India. J Travel Tour Mark 37(1):1–14. https://doi.org/10.1080/10548408.2019.1687389

Schilling MA (2002) Technology success and failure in winner-take-all markets: the impact of learning orientation, timing, and network externalities. Acad Manag J 45(2):387–398. https://doi.org/10.5465/3069353

Schmidt R, Lyytinen K, Keil M, Cule P (2001) Identifying software project risks: an international Delphi study. J Manag Inf Syst 17(4):5–36. https://reurl.cc/RrE1qG

Silva L, Leal J (2015) Rural tourism and national identity building in contemporary Europe: evidence from Portugal. J Rural Stud 38:109–119. https://doi.org/10.1016/j.jrurstud.2015.02.005

Singletary M (1994) Mass communication research: contemporary methods and applications. Longman, New York

Slater SJ (2020) Recommendations for keeping parks and green space accessible for mental and physical health during COVID-19 and other pandemics. Prev Chronic Dis https://doi.org/10.5888/pcd17.200204

Spector PE, Cooper CL, Sanchez JI, O’Driscoll M, Sparks K, Bernin P et al. (2002) Locus of control and well-being at work: How generalizable are western findings? Acad Manag J 45(2):453–470. https://doi.org/10.5465/3069359

Stewart BT, Gyedu A, Quansah R, Addo WL, Afoko A, Agbenorku P et al. (2016) District-level hospital trauma care audit filters: Delphi technique for defining context-appropriate indicators for quality improvement initiative evaluation in developing countries. Injury 47(1):211–219. https://reurl.cc/WrMLOk

Su MM, Dong Y, Geoffrey W, Sun Y (2020) A value-based analysis of the tourism use of agricultural heritage systems: Duotian Agrosystem, Jiangsu Province, China. J Sustain Tour 28(12):2136–2155. https://doi.org/10.1080/09669582.2020.1795184

Taylor-Powell E (2002) Quick tips collecting group data: Delphi technique. University of Wisconsin, Madison, WI

Tew C, Barbieri C (2012) The perceived benefits of agritourism: the provider’s perspective. Tour Manag 33(1):215–224. https://doi.org/10.1016/j.tourman.2011.02.005

Theodori GL (2001) Examining the effects of community satisfaction and attachment on individual well-being. Rural Sociol 66(4):618–828. https://doi.org/10.1111/j.1549-0831.2001.tb00087.x

Tinsley HEA, Weiss DJ (1975) Interrater reliability and agreement of subjective judgments. J Couns Psychol 22(4):358–376. https://doi.org/10.1037/h0076640

UNWTO (2021) Rural tourism. https://www.unwto.org/rural-tourism . Accessed 3 Nov 2021

Uysal M, Sirgy MJ, Woo E, Kim H (2016) Quality of Life (QOL) and well-being research in tourism. Tour Manag 53:244–261. https://doi.org/10.1016/j.tourman.2015.07.013

Vail D, Hultkrantz L (2000) Property rights and sustainable nature tourism: adaptation and mal-adaptation in Dalarna (Sweden) and Maine (USA). Ecol Econ 35(2):223–242. https://doi.org/10.1016/S0921-8009(00)00190-7

Vaishar A, Šťastná M (2022) Impact of the COVID-19 pandemic on rural tourism in Czechia preliminary considerations. Curr Issues Tour 25(2):187–191. https://doi.org/10.1080/13683500.2020.1839027

Vergani L, Cuniberti M, Zanovello M et al. (2022) Return to play in long-standing adductor-related groin pain: a Delphi study among experts. Sports Med—Open 8:11. https://doi.org/10.1186/s40798-021-00400-z

World Tourism Organization (2020) UNWTO recommendations on tourism and rural development—a guide to making tourism an effective tool for rural development. UNWTO, Madrid

Book   Google Scholar  

Yang Z, Cai J, Sliuzas R (2010) Agro-tourism enterprises as a form of multi-functional urban agriculture for peri-urban development in China. Habitat Int 34(4):374–385. https://doi.org/10.1016/j.habitatint.2009.11.002

Yang J, Yang RX, Chen MH, Su CH, Zhi Y, Xi JC (2021) Effects of rural revitalization on rural tourism. J Hosp Tour Manag 47:35–45. https://doi.org/10.1016/j.jhtm.2021.02.008

Zawadka J, Jęczmyk A, Wojcieszak-Zbierska MM, Niedbała G, Uglis J, Pietrzak-Zawadka J (2022) Socio-economic factors influencing agritourism farm stays and their safety during the COVID-19 pandemic: evidence from Poland. Sustainability 14:3526. https://doi.org/10.3390/su14063526

Article   CAS   Google Scholar  

Zhao W, Brent Ritchie JR (2007) Tourism and poverty alleviation: an integrative research framework. Curr Issues Tour 10(2&3):119–143. https://doi.org/10.2167/cit296.0

Zinn J, Zalokowski A, Hunter L (2001) Identifying indicators of laboratory management performance: a multiple constituency approach. Health Care Manag Rev 26(1):40–53. https://www.jstor.org/stable/44951308

Download references

Author information

Authors and affiliations.

Chienkuo Technology University, Changhua, Taiwan

Yung-Lun Liu

Dayeh University, Changhua, Taiwan

Jui-Te Chiang & Pen-Fa Ko

You can also search for this author in PubMed   Google Scholar

Contributions

We declare all authors involved in the work. The division of labor is stated as follows; Conceptualization: J-TC; Supervision: J-TC; Methodology: Y-LL; Investigation: Y-LL; Data collection, analysis, and curation: J-TC, Y-LL, P-FK; Original draft preparation: J-TC, Y-LL; Review: P-FK; Interpretation and editing: P-FK; Validation: J-TC, Y-LL, P-FK.

Corresponding author

Correspondence to Jui-Te Chiang .

Ethics declarations

Competing interests.

The authors declare no competing interests.

Ethical approval

Obtaining ethical approval from the Ethics Committee of the authors’ institution for such tourism management in Taiwan is unnecessary. This study was granted an exemption from requiring ethical approval.

Informed consent

To obtain the necessary permissions, prior to the questionnaire survey, we contacted all 18 content experts by telephone and explained the purpose of this study. This research was limited to an anonymous survey with no additional personal information recorded or analyzed beyond that shown to the survey experts. Subsequently, we sent the questionnaire with detailed information to those who confirmed that they wanted to cooperate. We have included all three authors’ contact information and the letter of withdrawal of cooperation for all eighteen experts.

Additional information

Publisher’s note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/ .

Reprints and permissions

About this article

Cite this article.

Liu, YL., Chiang, JT. & Ko, PF. The benefits of tourism for rural community development. Humanit Soc Sci Commun 10 , 137 (2023). https://doi.org/10.1057/s41599-023-01610-4

Download citation

Received : 03 July 2022

Accepted : 06 March 2023

Published : 31 March 2023

DOI : https://doi.org/10.1057/s41599-023-01610-4

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

Quick links

• Explore articles by subject
• Guide to authors
• Editorial policies

Why is tourism so important to the economy?

Recently updated on July 31st, 2023 at 04:03 pm

Tourism isn’t just about holidays and new adventures on distant shores. This incredible industry, quite literally, makes the world go round. From supporting local businesses to making up trillions of dollars of the global GDP, the importance of tourism on the economy is simply massive. And with the COVID-19 pandemic crushing the tourism industry this year, the damage has been felt across the world. In celebration of World Tourism Day on 27 September, we take a look at why tourism is so important to the economy and why it’s crucial this industry makes a comeback. 

What is the importance of travel and tourism?

In 2019 alone, the tourism industry contributed 10.3% of the global GDP – that’s US$8.9 trillion! It also provided 330 million jobs, or one in 10 jobs around the world, while over the past five years the tourism industry created one in four new jobs. The sector also experienced a 3.5% growth in 2019, exceeding the global economic growth of 2.5% for the ninth year in a row. 

Those are some impressive stats, painting a stark picture of the importance of tourism to the economy. So what happens when there is no tourism? 

2020 was the year that travel really did stop, with COVID-19 bringing the tourism industry to a devastating halt. By April 2020, at least 7.1 billion people, or 91% of the global population , were living with COVID-19 related travel restrictions.

Six months later, many countries are beginning to emerge from local lockdowns and re-open borders. But the tourism industry has been dealt a heavy blow.

Countless businesses have been forced to close, from local family stores to multinational companies. Millions of people have lost their jobs and livelihoods. However, a loss of jobs and income is just the beginning of the losses the world would face without tourism.

RELATED CONTENT: 6 ways your travels directly impact the lives of others for the better

What are the impacts of tourism?

The advantages of tourism go beyond creating billions of dollars and hundreds of millions of jobs and business opportunities. A booming tourism industry helps to build infrastructure such as roads, parks, hospitals, schools and community areas.

It also helps to preserve heritage sites, natural wonders, and precious cultures, by creating space for people to showcase their cultural traditions and protect sacred areas. Your travels can have a direct positive impact when you stay in locally-owned accommodation, shop in artisan markets, take part in traditional festivals, and tour with local guides. 

The tourism industry also helps to protect the environment and its wildlife, with many tourism businesses offering eco-friendly services and encouraging tourists to respect the lands and communities they visit.

Dozens of natural areas are gaining protection because of their importance to the tourism industry. There are also many inspiring cases of change, such as former poachers turning into safari guides or gamekeepers, as the income from tourists wanting to see wildlife means that protecting the animals is a far more valuable venture. Your trip can have a direct positive impact when you pay entry fees for national parks to ensure ongoing preservation. You should also always make sure you leave only footprints and take only photos from the natural areas you visit.

These positive impacts of the tourism industry are all part of a move towards responsible tourism. It’s all about having a beneficial effect on the communities we visit, protecting our wildlife, and caring for our planet. 

RELATED CONTENT: Travelling in today’s world: Your COVID-19 travel questions and concerns, answered

Why is responsible tourism important?

Without responsible tourism, many communities, cultures, animals and lands will suffer. Since tourism income provides a huge incentive to preserve areas of natural and cultural importance, removing this incentive puts these precious places at a higher risk of extinction. They’re more likely to be destroyed to make way for more profitable, and often harmful, developments such as mass agriculture .

RELATED CONTENT: Never again shall we take for granted how truly interconnected we all are

Responsible tourism also means more tourism businesses are using sustainable practices and promoting eco-friendly and culturally sensitive trips. This leaves less space for unethical businesses using tourism to damage the environment and exploit people and wildlife.

Responsible tourism is the way to go

The good news is, responsible tourism – and its big impact on the economy – is on the rise. As the tourism industry gradually makes a comeback in the wake of COVID-19, we’re likely to see changes in the way we travel. Travel trends like domestic travel, getting out into nature, and small group travel will all become more popular in 2021. 

RELATED CONTENT: From domestic travel to nature getaways, these are the 2021 travel trends we are seeing right now

After experiencing this global crisis together, we’re also feeling more interconnected than ever, and we’re more conscious of our impact on the environment. As a result, we’re more likely to take responsible holidays that celebrate our beautiful planet and connect with real people.

You can travel responsibly with Trafalgar with our JoinTrafalgar initiative, powered by the not-for-profit TreadRight Foundation . It was launched over a decade ago with a mission to use the positive power of travel to make a difference on our trips.

RELATED CONTENT: Now is the time to explore your own country, for you and the economy

How can my next trip help the economy?

So we’ve talked about the advantages of tourism to the economy and millions of people around the world… But how can we help the tourism industry make a comeback?

Since domestic travel will drive the recovery of tourism, the best place to travel first is your own backyard. Take it as a golden opportunity to explore some hidden gems in your own country!

You’ll get to reconnect with your local culture, history and nature, all while helping local businesses closer to home. When you spend money in small businesses like restaurants, hotels, shops and farms, you’re doing your part to support local families, revive the economy and bring travel back.

RELATED CONTENT: Aussies, here’s how your travels can directly boost the local economy

The wonders of local travel

You can embrace domestic travel with Trafalgar’s new ‘Near Not Far’ trips. They’re offering amazing local adventures in countries like the USA , Canada , Australia and New Zealand . 

You can choose from local experiences like visiting a real working sheep farm in southern New Zealand , or staying in a seaside eco-tent on the stunning Rottnest Island. Take part in a special Navajo cookout in Monument Valley , or sleep like royalty in the gorgeous châteaux of Quebec and Ontario.

While we don’t know how long it will take for the economy to recover, we do know that tourism is a crucial part of its revival. So once travel restrictions ease and borders reopen, why not think about taking a trip? It will do wonders for the world. 

What is the importance of tourism to you? Let us know in the comments below…

Want to hear more from us?

Sign up to receive inspiring travel articles, offers & news

" * " indicates required fields

Privacy Overview

Sign up for our emails (popup).

• Diversity Inclusion
• Advisory Panel
• Our Audience
• Private Tourism Academies
• Tourism Ambassador Training
• Destination Training
• Tourism Keynote Speakers
• Sponsorship
• Business Class Podcast
• Skill & Knowledge
• Product Training
• Our Technology
• Become An Instructor
• Sponsorship Opportunities
• Product Training & Promotion
• Hire Us To Speak

How Does Tourism Benefit Local Communities?

Tourism is a thriving industry that not only brings in visitors from around the world but also has significant positive impacts on local communities. While the economic benefits of tourism are well-known, its contributions to social, cultural, and environmental aspects are often overlooked. This article will explore how tourism can catalyze sustainable development and create a range of advantages for local communities.

Economic Growth and Job Creation: One of the most apparent benefits of tourism is its role in generating economic growth and employment opportunities. Tourists visit a destination and spend money on accommodation, transportation, food, shopping, and various services. This expenditure stimulates the local economy, increasing business activities and new jobs. Hotels, restaurants, tour operators, and local artisans are among the many businesses that directly benefit from the influx of tourists.

Preservation of Cultural Heritage: Tourism plays a significant role in preserving and promoting the cultural heritage of local communities. Visitors are often eager to explore a destination's unique traditions, customs, and historical sites. This creates a demand for cultural experiences, encouraging locals to preserve their traditions and showcase their heritage. By valuing their cultural assets, communities are motivated to protect historical landmarks, monuments, festivals, and traditional craftsmanship, which might have been neglected or forgotten.

Community Development and Infrastructure Improvement: Tourism can lead to the development of community infrastructure and public services. The revenue generated from tourism can be reinvested in improving transportation networks, healthcare facilities, educational institutions, and public spaces. This benefits tourists and enhances the quality of life for local residents. Additionally, the need to provide a positive visitor experience can encourage communities to invest in better facilities, amenities, and attractions, which ultimately benefit both tourists and locals alike.

Encouragement of Small Businesses and Entrepreneurship: The tourism industry allows small businesses and local entrepreneurs to thrive. Locals can establish their guesthouses, homestays, restaurants, tour companies, souvenir shops, and other tourism-related enterprises. This fosters entrepreneurship and empowers individuals within the community, promoting self-sufficiency and economic diversification. The growth of small businesses contributes to a more balanced and sustainable local economy, reducing dependency on a single industry.

Cultural Exchanges and Social Understanding: Tourism acts as a bridge for cultural exchange, fostering greater understanding and appreciation between visitors and locals. When tourists engage with the community, they gain insights into the local way of life, traditions, and customs. Similarly, locals can learn about different cultures, perspectives, and values. These interactions promote mutual respect and tolerance, breaking down stereotypes and fostering a sense of global citizenship.

Environmental Conservation and Sustainable Practices: Tourism can also drive environmental conservation and sustainable practices. Destinations with natural attractions often rely on preserving their environment to attract tourists. This incentivizes local communities to protect and conserve their natural resources, such as forests, wildlife, and marine ecosystems. Sustainable tourism practices, including responsible waste management, energy conservation, and eco-friendly initiatives, can benefit the environment and the community's long-term well-being.

RELATED: Train Your Tourism Ambassadors

Conclusion: Tourism brings many benefits to local communities beyond economic gains. It contributes to cultural preservation, infrastructure development, entrepreneurship, social understanding, and environmental conservation. By embracing sustainable tourism practices and involving local communities in decision-making processes, we can ensure that the positive impacts of tourism are maximized while minimizing its potential negative consequences. As travelers, we have the power to support and promote tourism that benefits local communities, ultimately creating a more inclusive and sustainable world.

Leave a comment

Related articles, the best time to launch your tourism ambassador training, leveraging online learning to build a sustainable tourism economy: a case study of rwenzori tourism academy in uganda, bordering a unesco site, the tourism academy's role in preserving local culture and natural habitats: empowering dmos.

language dropdown

The value of social sustainability in nordic tourism policy.

Information

Related content.

Green nudges in Nordic cities

Engaging the private sector in climate change mitigation

Second Nordic Forum on Climate Change in Fisheries and Aquaculture

Paris Alignment of Export Credit Agencies: Finland

Paris Alignment of Export Credit Agencies: Sweden

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Newsletters
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My watchlist
• Stock market
• Biden economy
• Personal finance
• Stocks: most active
• Stocks: gainers
• Stocks: losers
• Trending tickers
• World indices
• US Treasury bonds
• Top mutual funds
• Highest open interest
• Highest implied volatility
• Currency converter
• Basic materials
• Communication services
• Consumer cyclical
• Consumer defensive
• Financial services
• Industrials
• Real estate
• Mutual funds
• Credit cards
• Balance transfer cards
• Cash back cards
• Rewards cards
• Travel cards
• Online checking
• High-yield savings
• Money market
• Home equity loan
• Personal loans
• Student loans
• Options pit
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing

New on Yahoo

• Privacy Dashboard

Sri Lanka approves free tourist visas for 35 countries to boost tourism

By Uditha Jayasinghe

COLOMBO (Reuters) - Sri Lanka's cabinet approved issuing free tourist visas to visitors from 35 countries including China, India and Russia, a top official said on Thursday, in an effort to boost tourism and help revive its crisis-hit economy.

Tourists will be given 30-day visas under a six-month pilot programme that will start from Oct. 1, said Cabinet spokesman and Transport Minister Bandula Gunawardana.

"The aim of the government is to transform Sri Lanka into a free visa country, much like Singapore, Thailand, and Vietnam to tap into the benefits of a rapidly growing tourism industry," Gunawardana told reporters at a weekly cabinet briefing.

The extensive list includes India, China, UK, Germany, Netherlands, Belgium, Spain, Australia, Denmark, Poland, Kazakhstan, Saudi Arabia, UAE, Nepal, Indonesia, Russia, Thailand, Malaysia, Japan, and France.

The country of 22 million people, famed for its beaches, ancient temples and aromatic tea, saw its tourism industry pummelled first by the COVID-19 pandemic and then by a severe financial crisis in 2022 that saw mass scale protests and shortages of essentials such as fuel.

But the tourism industry is reaping the benefits of a turnaround that began last year with Sri Lanka clocking nearly 2 million arrivals by mid-August, for the first time since 2019.

The island is expecting to close the year at 2.3 million arrivals.

India is the largest source of tourists with 246,922 arrivals, followed by UK with 123,992, latest data from the Sri Lanka Development Authority showed.

Sri Lanka earned $1.5 billion from tourism in the first six months of 2024, up from $875 million dollars during the same period last year, according to the central bank. (This story has been corrected to show that the $1.5 bln is earnings from tourism in the first six months of 2024, not 2023, in paragraph 9)

(Reporting by Uditha Jayasinghe; Editing by Michael Perry)

Recommended Stories

Colorado assistant football coach attempted to raise nil funding from saudi arabia: report.

A former Colorado assistant football coach reportedly attempted to raise NIL funding from Saudi Arabia. The efforts were made on his own without the athletic department's endorsement.

Little League World Series down to 4 teams as Venezuela, Florida survive elimination bracket

It'll be Florida vs. Texas and Venezuela vs. Chinese Taipei in Williamsport.

Cava reports juicy earnings as steak launch, sales growth pushes stock to all-time high

Cava seems to be in the sweet spot of fast casual dining following its Q2 earnings report.

NASA to decide Saturday whether astronauts will ride Boeing’s Starliner home — or use SpaceX’s Dragon instead 

Butch Wilmore and Sunita Williams — will return to Earth on Boeing’s Starliner spacecraft or hitch a ride home with SpaceX instead — a decision that could have a huge impact across the rapidly evolving space industry. Boeing launched its first crewed Starliner mission on June 5 for what was supposed to be an eight-day sojourn on the International Space Station (ISS).

The first 22 seasons of Pokémon will return to streaming

The Pokémon Company has landed a distributor for a single-IP free ad-supported television channel that includes the first 22 seasons of the Pokémon anime series.

DC's antitrust case against Amazon comes back to life

An appeals court has revived an antitrust lawsuit against Amazon filed by the Attorney General of Washington, D.C. more than three years ago.

Gimbal Space takes on legacy suppliers with fast-paced component supply chain

America’s space industry seems mature, but the supply chain that provides all the parts and components for rockets, satellites, and other spacecraft is considerably less so. Gimbal Space is aiming to change that, starting with components in the crucial subsystem that enables a spacecraft to orient itself in space — but delivered cheaper and a whole lot faster. The startup was founded by Dhaval Shiyani, a mechanical engineer who has made a career of scaling complex hardware systems.

India's open commerce network expands into digital lending

Since its launch in 2022, India's Open Network for Digital Commerce (ONDC) -- a government-funded nonprofit that provides a set of APIs for tech companies and others to build new digital services for shoppers and businesses -- has grown to enable 12 million monthly transactions in areas like food delivery and mobility and new services from the likes of Google and Uber. The network also helps connect Indian startups and enterprises in grocery, food delivery, and logistics domains to flight Amazon and Flipkart. Now that number stands to rise with an infusion of fintech: The ONDC is expanding into financial services, starting with APIs for digital lending.

Alphabet X’s latest spinout brings computer vision and AI to salmon farms

Over the course of Alphabet X’s existence, the self-proclaimed “moonshot factory” has been notable for the variety in both its technological solutions and the problems it's attempting to solve. It’s big and abstract as goals go, so the newly minted company is beginning life by focusing on one specific element: salmon aquaculture. According to the World Wildlife Foundation, “Salmon aquaculture is the fastest-growing food production system in the world, accounting for 70% (2.5 million metric tons) of the market.”

Tilt raises $18M Series A to build on its real-time shopping app's success

Founded by two early ex-Revolut employees, Neil Shah and Abhi Thanendran, Tilt says its success has been the result of its focus on live sales of fashion items. Livestreamed e-commerce shopping in China is expected to grow 25% to $703.27 billion this year. This opportunity has led TikTok to devote a lot of resources and effort in the U.S. to replicate its live-shopping success in China.

Creatopy, which automates ad creation using AI, raises a $10M Series A

When advertising agencies create ads for clients, they don’t just make one advert, but potentially hundreds of iterations for a ream of platforms, and that can be pretty manually intensive. Creatopy, which automates ad creation using AI, has now raised a $10 million Series A co-led by European VCs 3VC (based out of Austria) and Point Nine (based out of Germany). The startup — which was developed in Romania but has a U.S. TopCo — now considers more than 5,000 brands and agencies as its clients, which use it to create, customize and automate their adverts and visual content production.

Labor market weakness shows signs of 'leveling off,' keeps Fed on track to cut rates in September

Debate on how quickly the labor market is cooling remains at the center of the discussion surrounding Federal Reserve interest rate cuts.

Kenyan HR and payroll startup Workpay lands Visa as investor in $5M round

Businesses across Africa face challenges managing payroll, especially in a landscape with different regulations, remote employees, and hybrid workplaces. About 80% of small and medium-sized businesses still use Excel and Google Sheets, as they can’t afford or maintain complex payroll systems. Global companies like Rippling and Gusto have made payroll easier for international businesses, but they struggle to work well in Africa.

Infiniti Q50 finally gets the death it has craved, won't make it to 2025

Infiniti confirms the Q50 sedan will leave the market at the end of the 2024 model year, after 11 years on sale.

Kerr out at Team USA, Zion slims down & our favorite under-the-radar offseason moves | No Cap Room

Jake Fischer and Dan Devine talk their way through the late August NBA news cycle and list off their favorite under-the-radar moves from this NBA offseason.

8 cooling bras to help you beat the late-summer heat, starting at just $13

Snap up these breathable beauties from big brands like Hanes, Playtex, Champion and more — all under $25.

Twitch subscription prices are increasing by $2 on iOS and Android

Twitch is updating subscription costs on mobile purchases. Beginning October 1, Tier 1 sub and gift sub prices made in the company's mobile app will be $8.

Cristiano Ronaldo sets records with YouTube channel launch, quickly passes Lionel Messi

The Portuguese star surpassed 1 million subscribers in 90 minutes.

The best Amazon deals to snag this week before summer ends: Save on Apple, Shark and more

Snag an iPad for its lowest-ever price and a plush pair of cooling pillows marked down by over 70%, for starters.

Bennifer 2.0 didn’t last: A look back at Jennifer Lopez and Ben Affleck’s 2nd chance at love

They rekindled their 2000s love affair and gave us all the feels — until the final curtain call.

Upward trend of tourism in Haywood County benefits local economy

by Rex Hodge

HAYWOOD COUNTY, N.C. (WLOS) — Every year, Visit NC Smokies analyzes tourism trends in all 100 North Carolina counties.

An upward trend in Haywood County has continued this year, meaning a big boost to the local economy.

Visitors to Haywood County spent more than $350 million last year – an increase of 4.2% over the previous year.

That's direct spending at Haywood County local businesses – our restaurants, our shops, our gas stations, our grocery stores," said Haywood County TDA Director Corrina Ruffieux.

Ruffieux has done the math. She said it is almost $1 million every day in visitor spending.

$1.9 MILLION RENOVATION TRANSFORMS HENDERSONVILLE WELCOME CENTER INTO A TOURIST HUB

“To us, it's like having another industry,” said Waynesville Mayor Gary Caldwell.

He says visitor revenues allow more reinvestment into programs, such as improvements along Main Street.

STUDY SHOWS TOURISM SPENDING IN BUNCOMBE COUNTY HITS RECORD HIGH, NEARLY $3 BILLION

“[It's] bringing in more sales tax to the Town of Waynesville,” he said. “Projects like the bump outs, to put new garbage cans all over Main Street. Also, the little park we have down there. We're wanting to put some kind of canvas there because so many people gather there.”

Many are now enjoying the new Gateway to the Smokies arch.

“You see people driving by and hanging their cameras out of their cars... taking pictures,” Caldwell said.

“They bring new vibes to the area,” says Carla Youse at her Flawsome Ladies New & Preloved Shop on Main Street.

ASK 13: WHAT ARE BILTMORE ESTATE'S VISITATION NUMBERS LIKE THIS YEAR?

She says tourists are playing an increasingly important role.

We're doing a good job, l think, of trying to get out there and offer avenues for different sets of people,” said Youse.

Ruffieux says 79% of visitors are coming from surrounding states and beyond. She says it is a slow, steady increase year after year.

“We're absolutely up every year since COVID,” she said.

Last year, she says, local tourism put more than 2,130 to work with a payroll of over $83 million.

“Hotel manager jobs and restaurant bartenders and head chef jobs... drive some pretty significant salaries,” said Ruffieux.

She says tourism and recreation will play a major role in a post-paper mill Canton.

Help them see what Canton can be five to 10 years down the future and how can we lean into that outdoor economy," she said.

She says that going forward, a master plan will focus on leveraging tourism numbers, while also protecting what is special about Haywood County for future generations.

In the big picture, visitors spend more than $97 million per day in the entire state of North Carolina.

UN Tourism | Bringing the world closer

Share this content.

• Share this article on facebook
• Share this article on twitter
• Share this article on linkedin

Destination Economic Benefits

The tourism activity in a destination is often a driver of development, triggering desired investments and employment opportunities. In order to contribute to the desired development objectives of destinations while fostering sustainability, it is important to regularly monitor and evaluate the economic benefits, among them the return on its investment, the direct and indirect employment effects, on taxes earned from tourism businesses, and any increase in asset value (land and infrastructure prices). In addition, tourism causes often indirect economic benefits through the development of support services and increased opportunities in other industries ranging from food and agriculture to crafts and construction.  Indicators of the economic effects of tourism activity in a destination range from measuring employment, business investments, tourism revenues, community expenditures to aspects of leakages. Many of these aspects are considered in the Tourism Satellite Account, the statistical framework that is used as a standardised tool to measure the direct economic contributions of tourism consumption to a national economy.   

PUBLICATIONS

OTHER RESOURCES

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.