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Sustainability 2016, 8(7), 605; doi:10.3390/su8070605

Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries

Department of Urban and Regional Planning, University of Dammam, P.O. Box 2397, Dammam 31451, Saudi Arabia
Academic Editor: Ian Patterson
Received: 8 April 2016 / Revised: 9 June 2016 / Accepted: 20 June 2016 / Published: 28 June 2016
(This article belongs to the Special Issue Sustainable Management in Tourism and Hospitality)
View Full-Text   |   Download PDF [219 KB, uploaded 28 June 2016]

Abstract

The main objective of this study is to investigate the causal relationship between tourism development and economic growth in Gulf Cooperation Council (GCC) countries in a multivariate model, using panel data for the period 1995–2012. The study adopts a panel Granger causality analysis approach to assess the contribution of tourism to economic growth in GCC countries as a whole, and in each individual country. In the case of GCC countries as a whole, the results show a one-way Granger causality, from economic growth to tourism growth. Furthermore, Kuwait, Saudi Arabia, Qatar, and the United Arab Emirates follow the path of economy-driven tourism growth, as hypothesized. The reverse hypothesis (i.e., tourism-led growth hypothesis) holds true for Bahrain, while there is no causal relationship between tourism and economic growth in the case of Oman. View Full-Text
Keywords: tourism development; economic growth; panel causality; GCC countries tourism development; economic growth; panel causality; GCC countries
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Alhowaish, A.K. Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries. Sustainability 2016, 8, 605.

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