AN ECONOMIC ANALYSIS OF TOURISM AS A DRIVER OF GDP GROWTH IN DEVELOPING COUNTRIES

Abstract

Tourism has emerged as a significant contributor to economic development, especially in developing countries where it generates employment, attracts foreign exchange, stimulates investment, and fosters cultural exchange. This paper provides an economic analysis of tourism as a driver of GDP growth, emphasizing the direct, indirect, and induced effects of the sector. It explores three dimensions: the role of tourism in employment and income generation, its contribution to infrastructure and investment, and the multiplier effects that extend into allied industries such as transportation, hospitality, and retail. Conceptual graphs demonstrate the positive correlation between tourism growth and GDP performance, while a comparative table highlights the contributions of tourism to GDP across selected developing regions. The findings confirm that tourism not only provides immediate economic benefits but also acts as a catalyst for long-term structural transformation. However, challenges such as over-dependence, environmental degradation, and political instability must be addressed to sustain tourism-led growth. The paper concludes with policy recommendations to maximize the sector’s potential through diversification, digitalization, and sustainable management.