The main objective of the study is to see overall contribution of tourism to the Ethiopian economy. Specifically: Tourism contribution to the GDP of the country, Tourism contribution to employment, Tourism contribution to foreign exchange generation, To examine the causal effect of tourism on economic growth.
Furthermore this research is to investigate the contribution of tourism for the Ethiopian economy over the year 2004-2014 for descriptive and 1991-2014 for econometrics. Graphs, table and, percent and Autoregressive Distributed Lag (ARDL) Approach to Co-integration and Error Correction Model are applied in order to investigate the long-run effect of tourism receipt on economic growth. Specifically this research assessed the impact of tourism on GDP, employment, foreign exchange earnings, and economic growth. The result shows tourism positive contribution to GDP, employment, foreign exchange earnings and stable relationship between tourism receipt and economic growth. The empirical result reveals that tourism receipt found to have positive impact on economic growth. So the government and citizens should strive to improve tourism industry and to generate more income especially foreign exchange.
According to WTO, tourism is a combination of activities travelling to and staying in places outside their usual environment for not more than one year for leisure, business and other activities. It is beyond the common perception of tourism as being limited to holiday activity. The WTO further explains that tourism refers to all activities of visitors including both tourist (overnight visitors) and same day visitors. This definition was adopted by UK government and WTO used it since 2004.
Tourism developed many years back when people travel from one place to another place for different purpose. Human beings have been active travelers for the purpose of hunting and gathering, herding animals in small groups that provided them with food, skin for cloth and bones for making different tools.
Table of Contents
1. Introduction
1.1. Background
1.2. Statement of the Problem
1.3. Objective of the Study
1.4. Significance of the Study
1.5. Scope and Limitation
2. Literature Review
2.1. Theoretical Literature
2.1.1. Tourism Concept and Definition
2.1.2. Types and Forms of Tourism
2.1.2.1. Types of tourism
2.1.2.2. Forms of tourism
2.1.3. Tourism in the World
2.1.4. Tourism in LDCs
2.1.5. Tourism in Ethiopia
2.1.5.1. Tourism during the Imperial Regime
2.1.5.2. Tourism during the Dergue regime
2.1.5.3. Tourism in the EPRDF Regime
2.1.6. Economic Contribution of Tourism
2.1.7. Socio-cultural Contribution OF Tourism
2.1.8. Environmental Impact of Tourism
2.1.9. Economic Growth
2.2. Empirical Literature Review
3. Model Specification and Methodology
3.1. Data Type and Source
3.2. Methods of data analysis
3.2.1. Model specification
3.3. Unit Root Test
3.4. Estimation Procedure
4. Data Presentation and Analysis
4.1. Descriptive analysis
4.1.1. Tourism Direct Contribution to the Ethiopian GDP in Millions of Birr 2004-2016
4.1.2. Total Contribution of Tourism to the Ethiopian GDP 2004-2016
4.1.3. Percentage Share of the Direct Contribution of Tourism in the Ethiopian GDP (%)
4.1.4. Tourism Direct Contribution to the Employment in Ethiopia (‘000s jobs)
4.1.5. Percentage Share of Direct Tourism Contribution to Employment in Ethiopia
4.1.6. Total Foreign Exchange Earned From International Tourism in Ethiopia
4.1.7. Tourist Arrivals from Abroad 2004-2016 to Ethiopia
4.1.8. Growth in Tourist Arrivals Over 2004-2016
5. CONCLUSION AND POLICY IMPLICATION
5.1. Conclusion
5.2. Policy Implication
Research Objectives and Thematic Focus
The primary objective of this research is to evaluate the contribution of the tourism sector to the Ethiopian economy, specifically examining its impacts on GDP, employment, and foreign exchange earnings from 1991 to 2014, while investigating the causal relationship between tourism receipts and economic growth.
- Analysis of tourism's economic contribution to Ethiopia's GDP, employment, and foreign exchange.
- Application of the Autoregressive Distributed Lag (ARDL) model to determine long-run economic effects.
- Comparison of descriptive trends in tourism data from 2004 to 2016.
- Examination of the causal relationship between tourism growth and national economic development.
- Formulation of policy implications for sustainable tourism development in Ethiopia.
Excerpt from the Book
2.1.3. Tourism in the World
International tourism generated $1 trillion in 2011 for the first time up from$928 billion in 2010. This shows a 3.8% growth from 2010. Tourism showed recovery from 2009 crisis. International tourist arrival reached to 982 million for the same year. Meaning it is an increase by 4.6% from the previous year (WTO, 2012).
By 2012 tourism export has generated $1.3 trillion worldwide. An additional $219 billion was recorded for this year from 2011 which growth by 4%. By regions America recorded 7% increase in receipt which is largest, next Asia and pacific 6%, Africa 5% and Europe 2%. But Middle East was still down or -2% (WTO, 2013).
Over the decades, tourism has experienced continued growth and diversification. Modern tourism is linked to development and encompasses a growing number of destinations in the world. This led to the socioeconomic progress. Tourism has contributed $6990.3 billion in 2013 to the world GDP. This shows 9.5% of the total world GDP. It had also good contribution in employment in the same year. Tourism generated 265,855,000 jobs in the world in 2013. This figure shows 8.9% of the total employment (WTTC, 2014).
According to WTO (2015) international tourist arrivals has reached 1.133 billion in 2014. It shows a 4.3% growth from 2013. This article also expresses that international tourism has generated $1.5 trillion.
Summary of Chapters
1. Introduction: Outlines the background of the study, the problem statement regarding economic challenges in Ethiopia, the objectives, and the significance of analyzing tourism's economic role.
2. Literature Review: Provides a comprehensive overview of tourism concepts, types, and forms, alongside theoretical and empirical studies regarding the tourism-economic growth nexus.
3. Model Specification and Methodology: Details the data sources, the Autoregressive Distributed Lag (ARDL) econometric model, and the statistical tests used for the study.
4. Data Presentation and Analysis: Presents descriptive statistical findings through tables and graphs regarding tourism's contribution to GDP, employment, and foreign exchange in Ethiopia.
5. CONCLUSION AND POLICY IMPLICATION: Summarizes the findings on the positive impact of tourism on Ethiopia's economy and proposes strategic policy measures to enhance sector efficiency.
Keywords
Tourism, Ethiopia, GDP, Economic Growth, Employment, Foreign Exchange, ARDL Model, Tourism Receipt, Sustainable Development, International Tourism, Economic Impact, Investment, Infrastructure, Socio-economic, Causality Analysis
Frequently Asked Questions
What is the core focus of this research?
This essay investigates the economic contribution of the tourism sector to the Ethiopian economy, focusing on its impact on GDP, job creation, and foreign exchange earnings.
What are the primary themes discussed in the work?
The work covers theoretical tourism definitions, global and local tourism trends, historical developments of the Ethiopian tourism sector, and the econometric relationship between tourism income and economic growth.
What is the main objective or research question?
The primary goal is to determine if a stable, long-run causal relationship exists between tourism receipts and economic growth in Ethiopia.
Which scientific methodology is applied?
The research employs both descriptive analysis using data from 2004-2016 and an econometric Autoregressive Distributed Lag (ARDL) approach to analyze long-run effects using data from 1991-2014.
What topics are covered in the main section?
The main sections include a detailed literature review, model specification, empirical data presentation via charts and tables, and a concluding section outlining policy recommendations.
Which keywords define this paper?
The study is characterized by terms such as Tourism, Economic Growth, Ethiopia, GDP, Foreign Exchange, and ARDL Model.
How does tourism specifically affect Ethiopia's foreign exchange?
The paper identifies international tourism as a significant source of foreign currency for Ethiopia, providing empirical data on the millions of dollars generated annually through tourism services.
What policy implications does the author suggest?
The author recommends that the government and private stakeholders collaborate to improve tourism infrastructure, standardize pricing, and prioritize the sector as a key driver for economic diversification.
- Citar trabajo
- Molla Dessie (Autor), 2016, The contribution of tourism to the Ethiopian economy and its impact on the GDP, Múnich, GRIN Verlag, https://www.grin.com/document/935430
