The Importance of Tourism in Regional Economic Development: A Time-Series Analysis
Abstract
Tourism is more often than not overlooked in its ability to alleviate poverty and the promotion of regional economic development. The aim of this study was to assess the importance of tourism in regional economic development and to gain a deeper understanding of the Vaal Triangle’s tourism profile which includes its potential and obstacles in tourism development. The study region included Emfuleni and Metsimaholo Municipal areas which forms the Vaal Triangle region, located in the southern portion of Gauteng, South Africa. Secondary data from 2001 to 2015 was obtained from Global Insight. The data was analysed with the use of a pooled panel cointegration model. The results from the statistical analysis showed that there is indeed a positive relationship between tourism, regional economic development and economic growth. In addition, a qualitative analysis was conducted by means of semi- structured interviews with key regional tourism stakeholders in the study region to gain in-depth knowledge on the opportunities and constraints facing the tourism industry. The results indicated that there are many underutilized resources and that cooperation between the community, local government and tourism organisations need to be improved. In order to achieve sustainable tourism development and economic growth, increased awareness should be created and with the correct policy measures tourism holds many opportunities for the Vaal Triangle region and other developing regions.
References
[1] Akama, J. S., and Kieti, D. 2007. Tourism and socio-economic development in developing countries: a case study of Mombasa Resort in Kenya. Journal of Sustainable Tourism, 15(6): 735-748. DOI: http://dx.doi.org/10.2167/jost543.0
[2] Antonakakis, N., Dragouni, M., and Filis, G. 2015. How strong is the linkage between tourism and economic growth in Europe? Economic Modelling, 44(2015): 142-155. DOI: 10.1016/j.econmod.2014.10.018
[3] Ashley, C., De Brine, P., and Wilde, H. 2007. The role of the tourism sector in expanding economic opportunity. Corporate Social Responsibility Initiative Report. Harvard University. Cambridge, MA.
[4] Baltagi, B.H. 2008. Econometric analysis of panel data. 4th Edition. New York: Wiley.
[5] Bandyopadhyay, S., and Tembo, G. 2010. Household consumption and natural resource management around national parks in Zambia. Journal of Natural Resources Policy Research, 2(1): 39-55. DOI: 10.1080/19390450903350838
[6] Brooks, C. 2014. Introductory econometrics and finance. 3rd Edition. Cambridge: Cambridge University Press.
[7] Chiou-Wei, S.Z., and Chen, C.F. 2009. Tourism expansion, tourism uncertainty and economic growth: New evidence from Taiwan and Korea. Tourism Management, 30(6): 812-818.
[8] Conlow, R. 2009. Principles of supervision. 2nd ed. Wise Owl Publications.
[9] Costas, C., Hillel, O., Matus, S., and Sweeting, J. 2003. Tourism and biodiversity: mapping tourism’s global footprint. Conservation International and UNEP. Washington, DC.
[10] Creaco, S., and Querini, G. 2003. The role of tourism in sustainable economic development. European Regional Science Association, 1(1): 1-13.
[11] Croes, R., and Vanegas, M. 2008. Co-integration and causality between tourism and poverty reduction. Journal of Travel Research, 47(1): 94-103. DOI: https://doi.org/10.1177/0047287507312429
[12] Cuningham, S., and Meyer-Stamer, J. 2005. Planning or doing local economic development? Problems with the orthodox approach to LED. Africa Insight, 35(4): 1-23.
[13] Eugenio-Martin, J.L., Morales, N.M., and Scarpa, R. 2004. Tourism and economic growth in Latin American countries: A panel data approach. FEEM Working Paper 26.
[14] Ezeala-Harrison, F. 1996. Economic Development: Theory and Policy Applications. United States of America. Greenwood Publishing Group.
[15] Giampiccoli, A., and Saayman, M. 2016. Community based tourism: From a local to a global push. Independent Research Journal in the Management Sciences, 16(1): 1-10. Available at: http://hdl.handle.net/10321/2228
[16] Honey, M., and Gilpin, R. 2009. Tourism in the Developing World: Promoting Peace and Reducing Poverty. Washington: United States Institute for Peace.
[17] Hull, K. 2009. Understanding the relationship between economic growth, employment and poverty reduction. Promoting pro-poor growth: Employment. OECD. Available at: https://www.oecd.org/dac/povertyreduction/ 43280288.pdf. Date of access: 3 March 2017.
[18] Ivanov, S.H., and Webster, C. 2013. Tourism’s contribution to economic growth: a global analysis for the first decade of the millennium. Tourism Economics, 19(3): 477-508. DOI: https://doi.org/10.5367/te.2013.0211
[19] Khakhonova, N.N. 2013. Formation mechanisms for sustainable economic development industrial sector, complexes, enterprises. Presented at the International Conference on Sustainable Development, Germany, 10 July. Date of access: 13 September 2016.
[20] Lanza, A., and Pigliaru, F. 2000. Why are tourism countries small and fast growing? In Fossati, A. & Panella, G., eds. Tourism and Sustainable Economic Development. Dordrecht: Kluwer, pp. 57-69.
[21] Lee, C.C., and Chang, C.P. 2008. Tourism development and economic growth: A closer look at panels. Tourism Management, 29(1): 180-192. DOI: 10.1016/j.tourman.2007.02.013
[22] Meyer, D.F., and Meyer, N. 2015. 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.
[23] Milne, S., and Ateljevic, I. 2001. Tourism, economic development and the global-local nexus: Theory embracing complexity. Tourism Geographies, 3(4): 369-393. DOI: http://dx.doi.org/10.1080/146166800110070478
[24] Moosa, V. et al. 2015. Review of South African Tourism. SA Tourism Review: SA Tourism Review Committee, June 2015.
[25] Mowforth, M., and Munt, I. 2003. Sustainable Tourism in Developing Countries: Poverty Alleviation, Participatory Planning, and Ethical Issues. London: Routledge.
[26] Oun, M. A., and Bach, C. 2014. Qualitative research method summary. Journal of Multidisciplinary Engineering Science and Technology, 1(5): 242-258.
[27] Pedrana, M. 2013. Local economic development policies and tourism: An approach to sustainability and culture. Regional Science Inquiry Journal, 5(1): 91-99.
[28] Pillay, M., and Rogerson, C.M. 2013. Agriculture-tourism linkages and pro-poor impacts: The accommodation sector of urban coastal KwaZulu-Natal, South Africa. Applied Geography, 36(1): 49-58. DOI: 10.1016/j.apgeog.2012.06.005
[29] Pulido-Fernandez, J.I., and López-Sanchez, Y. 2011. Tourism: Analysis of a global phenomenon from a perspective of sustainability, In Pachura, P., eds. The systemic dimension of globalization, pp. 267-288.
[30] Ramirez, A., Ranis, G., and Stewart, F. 1998. Economic growth and human development. QEH Working Paper no 18. Available at: www3.qeh.ox.ac.uk/pdf/qehwp/qehwps18.pdf. Date of access: 2 March 2017.
[31] Richardson, R.B. 2010. The Contribution of Tourism to Economic Growth and Food Security. Michigan, East Lansing: Michigan State University.
[32] Rogerson, C.M. 2010. Tourism and Local Economic Development: Issues for Local Government. University of Johannesburg, South Africa.
[33] Samini, A.J., Sadeghi, S., and Sadeghi, S. 2011. Tourism and economic growth in developing countries: P-VAR Approach. Middle East Journal of Scientific Research, 10(1): 28-32.
[34] Scott, D., and Gössling, S. 2015. What could the next 40 years hold for global tourism? Tourism Recreation Research, 40(3): 269-285. DOI: http://dx.doi.org/10.1080/02508281.2015.1075739
[35] Seghir, G.M. Mostéfa, B., Abbes, S.M., and Zakarya, G.Y. 2014. Tourism spending-economic growth causality in 49 countries: A dynamic panel data approach. Procedia Economics and Finance, 23(2015): 1613-1623. DOI: 10.1016/S2212-5671(15)00402-5
[36] Shan, J., and Wilson, K. 2001. Causality between trade and tourism: empirical evidence from China. Applied Economics Letters, 8(4): 279-283. DOI: http://dx.doi.org/10.1080/135048501750104114
[37] Steiner, C. 2006. Tourism, poverty reduction and the political economy: Egyptian perspectives on tourism's economic benefits in a semi-rentier state. Tourism Hospitality Planning and Development, 3(3): 161-77. DOI: http://dx.doi.org/10.1080/14790530601132286
[38] Todaro, M.P., and Smith, S.C. 2015. Economic Development. 12th ed. Edinburgh Gate: Pearson education Ltd.
[39] Trousdale, W. 2005. Promoting local economic development through strategic planning. The Local Economic Development Series, 1(1): 1-24.
[40] Tsheole, T. 2015. Numsa fights to save steel sector’s looming massive job cuts. Available at: http://www.sabc.co.za/news/al9484490049976360a2b7aaa84320b537/numsa. Date of access: 14 Oct. 2016.
[41] Western, D. J. 2008. Ecotourism, conservation and development in East Africa: How the philanthropic traveller can make a difference. Washington, DC: Centre for Responsible Travel.
*** Nedbank. 2011. Governments role in promoting small businesses in South Africa- Part 2. Available at: http://www.simplybiz.co.za/interact/blogs/governments-role-in-promoting-small-businesses-in-south-africa-part-2 Date of access: 30 May. 2016.
*** BMI (Business Monitor International). 2016. South Africa Tourism Report Q3 2016. South Africa Tourism Report 3, 1-31.
*** Department of Economic Development and Tourism. see South Africa.
*** ICLEI (International Council for Local Environmental Initiatives). 1999. Sustainable Tourism: A local Authority Perspective. Commission on Sustainable Development: New York.
*** Global Insight. 2016. Regional Explorer. Available at: http://www.ihsglobalinsight.co.za/Products/ Date of access: 29 Sept. 2016.
*** Local Government Handbook. 2016. Emfuleni and Metsimaholo. Available at: http://www.localgover nment.co.za. Date of access: 12 Sept. 2016.
*** SAGNA (South African Government news Agency). 2015. Tourism has potential to create jobs. Available at: http://www.sanews.gov.za/south-africa/tourism-has-potential-to-create-jobs. Date of access: 29 May. 2016.
*** SAinfo (South Africa info). 2015. Revisions to South Africa’s amended visa regulations. Available at: http://www.southafrica.info/travel/south-africa-visa-amendments-261015.htm#.WA039fVBusw. Date of access: 16 Oct. 2016.
*** SALGA (South African Local Government Association). 2016. Topic: Informal Economy. Available at: http://led.co.za/topic/informal-economy. Date of access: 9 Nov. 2016.
*** South Africa. Department of Economics and Tourism. 2006. An introduction to Economic Development in the Western Cape. Western Cape.
*** StatsSA (Statistics South Africa). 2016. Tourism: Employment, economy and foreign income. Available at: http://www.statssa.gov.za/?p=6166. Date of access: 29 May. 2016.
*** UNWTO (The World Tourism Organization). 2008. Understanding tourism: basic glossary. Available at: http://media.unwto.org/en/content/understanding-tourism-basic-glossary. Date of access: 1 June. 2017.
*** UNWTO (The World Tourism Organization). 2016a. Why Tourism? Available at: http://www2.unwto.org/content/why-tourism. Date of access: 2 Apr. 2016.
*** UNWTO (The World Tourism Organization). 2016b. International tourism continues to grow above average in the first four months of 2016. Available at: http://media.unwto.org/press-release/2016-07-19/international-tourism-continues-grow-above-average-first-four-months-2016. Date of access: 18 Sept. 2016.
*** WTTC (World Travel and Tourism Council). 1999. Tourism and sustainable development: The global importance of tourism. Commission on Sustainable Development: p. 1-5.
*** WTTC. 2017. Travel and tourism economic impact 2017: South Africa. London.
[2] Antonakakis, N., Dragouni, M., and Filis, G. 2015. How strong is the linkage between tourism and economic growth in Europe? Economic Modelling, 44(2015): 142-155. DOI: 10.1016/j.econmod.2014.10.018
[3] Ashley, C., De Brine, P., and Wilde, H. 2007. The role of the tourism sector in expanding economic opportunity. Corporate Social Responsibility Initiative Report. Harvard University. Cambridge, MA.
[4] Baltagi, B.H. 2008. Econometric analysis of panel data. 4th Edition. New York: Wiley.
[5] Bandyopadhyay, S., and Tembo, G. 2010. Household consumption and natural resource management around national parks in Zambia. Journal of Natural Resources Policy Research, 2(1): 39-55. DOI: 10.1080/19390450903350838
[6] Brooks, C. 2014. Introductory econometrics and finance. 3rd Edition. Cambridge: Cambridge University Press.
[7] Chiou-Wei, S.Z., and Chen, C.F. 2009. Tourism expansion, tourism uncertainty and economic growth: New evidence from Taiwan and Korea. Tourism Management, 30(6): 812-818.
[8] Conlow, R. 2009. Principles of supervision. 2nd ed. Wise Owl Publications.
[9] Costas, C., Hillel, O., Matus, S., and Sweeting, J. 2003. Tourism and biodiversity: mapping tourism’s global footprint. Conservation International and UNEP. Washington, DC.
[10] Creaco, S., and Querini, G. 2003. The role of tourism in sustainable economic development. European Regional Science Association, 1(1): 1-13.
[11] Croes, R., and Vanegas, M. 2008. Co-integration and causality between tourism and poverty reduction. Journal of Travel Research, 47(1): 94-103. DOI: https://doi.org/10.1177/0047287507312429
[12] Cuningham, S., and Meyer-Stamer, J. 2005. Planning or doing local economic development? Problems with the orthodox approach to LED. Africa Insight, 35(4): 1-23.
[13] Eugenio-Martin, J.L., Morales, N.M., and Scarpa, R. 2004. Tourism and economic growth in Latin American countries: A panel data approach. FEEM Working Paper 26.
[14] Ezeala-Harrison, F. 1996. Economic Development: Theory and Policy Applications. United States of America. Greenwood Publishing Group.
[15] Giampiccoli, A., and Saayman, M. 2016. Community based tourism: From a local to a global push. Independent Research Journal in the Management Sciences, 16(1): 1-10. Available at: http://hdl.handle.net/10321/2228
[16] Honey, M., and Gilpin, R. 2009. Tourism in the Developing World: Promoting Peace and Reducing Poverty. Washington: United States Institute for Peace.
[17] Hull, K. 2009. Understanding the relationship between economic growth, employment and poverty reduction. Promoting pro-poor growth: Employment. OECD. Available at: https://www.oecd.org/dac/povertyreduction/ 43280288.pdf. Date of access: 3 March 2017.
[18] Ivanov, S.H., and Webster, C. 2013. Tourism’s contribution to economic growth: a global analysis for the first decade of the millennium. Tourism Economics, 19(3): 477-508. DOI: https://doi.org/10.5367/te.2013.0211
[19] Khakhonova, N.N. 2013. Formation mechanisms for sustainable economic development industrial sector, complexes, enterprises. Presented at the International Conference on Sustainable Development, Germany, 10 July. Date of access: 13 September 2016.
[20] Lanza, A., and Pigliaru, F. 2000. Why are tourism countries small and fast growing? In Fossati, A. & Panella, G., eds. Tourism and Sustainable Economic Development. Dordrecht: Kluwer, pp. 57-69.
[21] Lee, C.C., and Chang, C.P. 2008. Tourism development and economic growth: A closer look at panels. Tourism Management, 29(1): 180-192. DOI: 10.1016/j.tourman.2007.02.013
[22] Meyer, D.F., and Meyer, N. 2015. 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.
[23] Milne, S., and Ateljevic, I. 2001. Tourism, economic development and the global-local nexus: Theory embracing complexity. Tourism Geographies, 3(4): 369-393. DOI: http://dx.doi.org/10.1080/146166800110070478
[24] Moosa, V. et al. 2015. Review of South African Tourism. SA Tourism Review: SA Tourism Review Committee, June 2015.
[25] Mowforth, M., and Munt, I. 2003. Sustainable Tourism in Developing Countries: Poverty Alleviation, Participatory Planning, and Ethical Issues. London: Routledge.
[26] Oun, M. A., and Bach, C. 2014. Qualitative research method summary. Journal of Multidisciplinary Engineering Science and Technology, 1(5): 242-258.
[27] Pedrana, M. 2013. Local economic development policies and tourism: An approach to sustainability and culture. Regional Science Inquiry Journal, 5(1): 91-99.
[28] Pillay, M., and Rogerson, C.M. 2013. Agriculture-tourism linkages and pro-poor impacts: The accommodation sector of urban coastal KwaZulu-Natal, South Africa. Applied Geography, 36(1): 49-58. DOI: 10.1016/j.apgeog.2012.06.005
[29] Pulido-Fernandez, J.I., and López-Sanchez, Y. 2011. Tourism: Analysis of a global phenomenon from a perspective of sustainability, In Pachura, P., eds. The systemic dimension of globalization, pp. 267-288.
[30] Ramirez, A., Ranis, G., and Stewart, F. 1998. Economic growth and human development. QEH Working Paper no 18. Available at: www3.qeh.ox.ac.uk/pdf/qehwp/qehwps18.pdf. Date of access: 2 March 2017.
[31] Richardson, R.B. 2010. The Contribution of Tourism to Economic Growth and Food Security. Michigan, East Lansing: Michigan State University.
[32] Rogerson, C.M. 2010. Tourism and Local Economic Development: Issues for Local Government. University of Johannesburg, South Africa.
[33] Samini, A.J., Sadeghi, S., and Sadeghi, S. 2011. Tourism and economic growth in developing countries: P-VAR Approach. Middle East Journal of Scientific Research, 10(1): 28-32.
[34] Scott, D., and Gössling, S. 2015. What could the next 40 years hold for global tourism? Tourism Recreation Research, 40(3): 269-285. DOI: http://dx.doi.org/10.1080/02508281.2015.1075739
[35] Seghir, G.M. Mostéfa, B., Abbes, S.M., and Zakarya, G.Y. 2014. Tourism spending-economic growth causality in 49 countries: A dynamic panel data approach. Procedia Economics and Finance, 23(2015): 1613-1623. DOI: 10.1016/S2212-5671(15)00402-5
[36] Shan, J., and Wilson, K. 2001. Causality between trade and tourism: empirical evidence from China. Applied Economics Letters, 8(4): 279-283. DOI: http://dx.doi.org/10.1080/135048501750104114
[37] Steiner, C. 2006. Tourism, poverty reduction and the political economy: Egyptian perspectives on tourism's economic benefits in a semi-rentier state. Tourism Hospitality Planning and Development, 3(3): 161-77. DOI: http://dx.doi.org/10.1080/14790530601132286
[38] Todaro, M.P., and Smith, S.C. 2015. Economic Development. 12th ed. Edinburgh Gate: Pearson education Ltd.
[39] Trousdale, W. 2005. Promoting local economic development through strategic planning. The Local Economic Development Series, 1(1): 1-24.
[40] Tsheole, T. 2015. Numsa fights to save steel sector’s looming massive job cuts. Available at: http://www.sabc.co.za/news/al9484490049976360a2b7aaa84320b537/numsa. Date of access: 14 Oct. 2016.
[41] Western, D. J. 2008. Ecotourism, conservation and development in East Africa: How the philanthropic traveller can make a difference. Washington, DC: Centre for Responsible Travel.
*** Nedbank. 2011. Governments role in promoting small businesses in South Africa- Part 2. Available at: http://www.simplybiz.co.za/interact/blogs/governments-role-in-promoting-small-businesses-in-south-africa-part-2 Date of access: 30 May. 2016.
*** BMI (Business Monitor International). 2016. South Africa Tourism Report Q3 2016. South Africa Tourism Report 3, 1-31.
*** Department of Economic Development and Tourism. see South Africa.
*** ICLEI (International Council for Local Environmental Initiatives). 1999. Sustainable Tourism: A local Authority Perspective. Commission on Sustainable Development: New York.
*** Global Insight. 2016. Regional Explorer. Available at: http://www.ihsglobalinsight.co.za/Products/ Date of access: 29 Sept. 2016.
*** Local Government Handbook. 2016. Emfuleni and Metsimaholo. Available at: http://www.localgover nment.co.za. Date of access: 12 Sept. 2016.
*** SAGNA (South African Government news Agency). 2015. Tourism has potential to create jobs. Available at: http://www.sanews.gov.za/south-africa/tourism-has-potential-to-create-jobs. Date of access: 29 May. 2016.
*** SAinfo (South Africa info). 2015. Revisions to South Africa’s amended visa regulations. Available at: http://www.southafrica.info/travel/south-africa-visa-amendments-261015.htm#.WA039fVBusw. Date of access: 16 Oct. 2016.
*** SALGA (South African Local Government Association). 2016. Topic: Informal Economy. Available at: http://led.co.za/topic/informal-economy. Date of access: 9 Nov. 2016.
*** South Africa. Department of Economics and Tourism. 2006. An introduction to Economic Development in the Western Cape. Western Cape.
*** StatsSA (Statistics South Africa). 2016. Tourism: Employment, economy and foreign income. Available at: http://www.statssa.gov.za/?p=6166. Date of access: 29 May. 2016.
*** UNWTO (The World Tourism Organization). 2008. Understanding tourism: basic glossary. Available at: http://media.unwto.org/en/content/understanding-tourism-basic-glossary. Date of access: 1 June. 2017.
*** UNWTO (The World Tourism Organization). 2016a. Why Tourism? Available at: http://www2.unwto.org/content/why-tourism. Date of access: 2 Apr. 2016.
*** UNWTO (The World Tourism Organization). 2016b. International tourism continues to grow above average in the first four months of 2016. Available at: http://media.unwto.org/press-release/2016-07-19/international-tourism-continues-grow-above-average-first-four-months-2016. Date of access: 18 Sept. 2016.
*** WTTC (World Travel and Tourism Council). 1999. Tourism and sustainable development: The global importance of tourism. Commission on Sustainable Development: p. 1-5.
*** WTTC. 2017. Travel and tourism economic impact 2017: South Africa. London.
Published
2017-10-12
How to Cite
MEYER, Daniel Francois; BRUYN, Chané de; MEYER, Natanya.
The Importance of Tourism in Regional Economic Development: A Time-Series Analysis.
Journal of Environmental Management and Tourism, [S.l.], v. 8, n. 4, p. 784-797, oct. 2017.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/1410>. Date accessed: 21 nov. 2024.
doi: https://doi.org/10.14505//jemt.v8.4(20).08.
Section
Article
Copyright© 2024 The Author(s). Published by ASERS Publishing 2024. This is an open access article distributed under the terms of CC-BY 4.0 license.