Measuring and Analyzing The Role of Tourism Spending in Economic Growth in Selected Countries for The Duration (1990-2019)

Abstract

The size of Tourism Expenditure in any tourist country depends on many variables and indicators, including the level of tourist's income, the general level of prices, exchange rates, and the economic and political conditions in a country. The high volume of tourism spending, on both consumption and investment sides, are necessary to achieve economic growth. It’s necessary working to attract the number of tourists, especially as it is considered a major source of obtaining hard currenc, increase the stay rate of tourists, and raising the volume of tourism spending. This article aims to measure and analyze the factors affecting tourism expenditure and explain the impact of tourism expenditure on economic growth in selected countries (China, America, Italy, Turkey, Iran, and Iraq) for the period (1990-2019). To achieve this objective, the article relied on the analytical - econometrics method and using a set of models (OLS, Robust Least Square and ARDL). The article concluded that most of the variables for all countries have a strong and significan relationship with tourism expenditure as well as with economic growth. Also, current article concluded that there is a clear and direct impact of tourism expenditure on the economic growth of all the countries. The necessity of working to increase tourism consumption and investment, both internal and external, to ensure the achievement of the required level of economic growth, and this is achieved through the development of tourist areas and raising the level of tourism services.