The Relationship between the Tourism Sector and Local Economic Development (LED): The Case of the Vaal Triangle Region, South Africa
Abstract
The aim of the study was to determine the relationship between tourism and Local Economic Development (LED). Tourism encourages economic growth by generating income and employment through business opportunities in both developed and developing regions. Tourism is considered an economic sector in itself, which could assist in diversification and revitalization of local economic regions. The geographical focus area of the research is the Vaal Triangle region located in southern Gauteng, South Africa. The study was conducted using a panel regression analysis. Secondary data were used from the Global Insight data base. Data obtained were further interpreted and analyzed and findings indicated that a positive relationship exists between the regional Gross Domestic Product (RGDP) and tourism development. The tourism sector and LED experience different challenges; however, if they work in a coordinated manner, this could contribute significantly to economic growth and development in any region.References
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*** World Bank. 2011. What is Local Economic Development (LED)? http://web.worldbank.org.html. Date of access: 24 May 2015.
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[3] Ashley, C., De Brine, P., Lehr A., and Wilde, H. 2007. The Role of the Tourism Sector in Expanding Economic Opportunity. Cambridge: Harvard University.
[4] Athanasopoulou, A. 2013. Tourism as a driver of economic growth and development in the EU-27 and ASEAN regions. Available at: http://www.eucentre.sg/wp-content/uploads.pdf (Date of access: 20 September 2015)
[5] Butler, R., Hall, C.M., Jerkings, J. 1998. Tourism and Recreation in Rural Areas. England: John & Sons.
[6] Coltman, M.M. 1989. Introduction to Travel and Tourism: An International Approach. New York: Van Nostrand Reinhold Library of Congress Catalogue.
[7] Hayakawa, T., and Rivero, M. 2009. Local Economic Development and tourism. Available at: http://siteresources.worldbank.org/INTCHD/Resources.pdf (Date of access: 17 May 2015)
[8] Keyser, H. 2002. Tourism Development. Cape Town: Oxford University Press.
[9] Kreag, G. 2001. The Impacts of Tourism. Duluth: University of Minnesota.
[10] Kyungmi, K. 2002. The effects of tourism impacts upon quality of life of residents in the community. Blacksburg: Virginia Polytechnic Institute and State University. (Thesis-PhD).
[11] Marek, M., and Liszewski, D. 2015. Development of Polish regional airports in the context of tourism needs. Polish Journal of Management Studies, 11(1): 90-99.
[12] Mathieson, A., and Wall, G. 1982. Tourism: economic, physical and social impact. New York: Longman Group.
[13] Meyer, D.F. 2014. Local economic development (LED) challenges and solution: The case of Northern Free State region, South Africa. Mediterranean Journal of Social Sciences, 5(16): 624-634. DOI:10.5901/mjss.2014.v5n16p624
[14] Meyer, D.F., and Meyer, N. 2014. The role and impact of tourism on local economic development: A comparative study. African Journal for Physical, Health Education, Recreation and Dance, 21(1:1):197-214.
[15] Mogajane, V.S. 2005. Leisure and tourism behaviour in rural areas in the North West Province. Potchefstroom: North West University. (Dissertation-MBA).
[16] Msibi, F.A. 2010. The role of tourism in poverty alleviation at Sedibeng district municipality. Vanderbiljpark: North West University. (Dissertation-MBA).
[17] Ntonzima, L., and Binza, M.S. 2011. Prioritisation of the tourism industry as a Local Economic Development sector approach for rural coastal areas in South Africa: The case of Transkei Wild Coast community. Available at: http://digitalknowledge.cput.ac.za/jspui/bitstream.pdf (Date of access: 5 September 2015)
[18] Pedrana, M. 2013. Local economic development policies and tourism: an approach to sustainability and culture. Regional Science Inquiry Journal, Volume V, 1: 91-99. Available at: http://www.rsijournal.eu/ ARTICLES/June_2013/5.pdf
[19] Rodríguez-Pose, A., and Tijmstra, S. 2005. Local economic development as alternative approach to economic development in Sub-Saharan Africa. London: London School of Economics. Available from: http://siteresources.worldbank.org/INTLED/Resources/339650-1144099718914/AltOverview.pdf
[20] Samimi, A.J., and Sadeghi, S. 2011. Tourism and economic growth in developing countries: P-var approach. Middle-East Journal of Scientific Research, 10 (1): 28-32.
[21] Seetanah, B. et al. 2011. Does infrastructure matter in tourism development? University of Mauritius Research Journal, 17: 89-107. DOI:10.4314/umrj.v17i1.70731
[22] Stoddart, H.I. 2008. Route tourism and Local Economic Development in South Africa: The Magalies meander and the crocodile ramble. Johannesburg: University of Witwatersrand. (Dissertation-MBA).
[23] Yuliawati Ayu Krishna et al. 2016. Developing geotourism as part of sustainable development at Ciletuh Sukabumi West Java Indonesia, Journal of Environmental Management and Tourism, (Volume VII, Summer), 1(13): 57-62. DOI:10.14505/jemt.v7.1(13).05. Available from: http://www.asers.eu/journals/ jemt/curent-issue
*** Global Insight. 2015. Regional Explorer. Available at: http://www.ihsglobalinsight.co.za/Products (Date of access: 14 April 2015)
*** International Labour Organisation (ILO). 2013. Toolkit on poverty reduction through tourism. Available at: http://www.ilo.org/wcmsp5/groups/.pdf (Date of access: 17 May 2015)
*** Organization of American States (OAS). 2010. Tourism as an economic development tool. Available at: www.oas.org/dsd/publications/unit/oea78e/ch10.htm
*** Patterson, C. 2008. Country report on Local Economic Development in SA. South Africa: German Agency for Development Cooperation.
*** United Nations World Tourism Organization (UNWTO). 2014. Tourism highlights, 2014 Edition. Madrid.
*** United Nations World Tourism Organization (UNWTO). 2015. Tourism press release no 15006, 27 January 2015. http://media.untwo.org/press-release. Date of access: 15 January 2016.
*** World Bank. 2011. What is Local Economic Development (LED)? http://web.worldbank.org.html. Date of access: 24 May 2015.
Published
2016-11-10
How to Cite
MEYER, Daniel Francois; MEYER, Natanya.
The Relationship between the Tourism Sector and Local Economic Development (LED): The Case of the Vaal Triangle Region, South Africa.
Journal of Environmental Management and Tourism, [S.l.], v. 7, n. 3, p. 466-472, nov. 2016.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/356>. Date accessed: 27 apr. 2024.
Section
Journal of Environmental Management and Tourism
Keywords
local economic development; strategic management; tourism; South Africa; Vaal Triangle region
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.