The Contribution of Tourism to Economic Growth: The Case of Qatar
Abstract
Most of the Gulf Cooperation Council (GCC) countries’ wealth was attributed to revenues generated from oil and gas exports. However, with the fluctuation of oil demand and prices, leaders of GCC countries acknowledged the importance of economic diversification to reduce their dependence on oil exportation and allow for revenue generation from non-energy sectors. As a result, GCC countries, including Qatar, have witnessed rapid development in the tourism sector. The Qatari government commenced several local and intra-regional development plans, which promised more inflow of tourists both from GCC countries and other countries. Yet, impacted by the GCC crisis, the total number of visitors to Qatar noticeably decreased. These changes raise unanswered questions on whether the investment in the tourism sector can create a sustainable non-energy source of revenue. Since little attention has been paid to this issue, this paper contributes to the current understanding of the issue by examining the contribution of tourism to economic growth in Qatar. Using annual data from 1995 to 2018 and employing an Autoregressive Distributed Lag (ARDL) model, the paper tested whether the Tourism-Led-Growth Hypothesis (TLGH) is valid for the case of Qatar. Results suggest that tourism does not have a statistically significant impact on economic growth in the short-run. However, it has a statistically significant impact in the long-run, such that every 10 percent increase in tourist visits causes a 3 percent increase in GDP growth. The results suggest that the investment efforts in the tourism sector should continue to stimulate economic growth and development and diversify the economy away from the energy sector.
References
[1] Alhowaish, A.K. 2016. Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries. Sustainability, 8(7): 605–15. DOI: https://doi.org/10.3390/su8070605
[2] Antonakakis, N., Dragouni, M. and Filis, G. 2015. How Strong Is the Linkage between Tourism and Economic Growth in Europe? Economic Modelling, 44: 142–55. DOI: https://doi.org/10.1016/j.econmod.2014.10.018
[3] Aratuo, D. N., Etienne, X. L., Gebremedhin, T. and Fryson, D. M. 2019. Revisiting the Tourism-Economic Growth Nexus: Evidence from the United States. International Journal of Contemporary Hospitality Management, 31(9): 3779–98. DOI: https://doi.org/10.1108/ijchm-08-2018-0627
[4] Bassil, C., Hamadeh, M. and Samara, N. 2015. The Tourism Led Growth Hypothesis: the Lebanese Case. Tourism Review, 70(1): 43–55. DOI: https://doi.org/10.1108/tr-05-2014-0022
[5] Brida, J. G. and Pulina, M. 2010. Working paper. A Literature Review on the Tourism-Led-Growth Hypothesis. Cagliari, Italy: CENTRO RICERCHE ECONOMICHE NORD SUD (CRENoS), 2010. Available at: https://www.researchgate.net/publication/254399592_A_literature_review_on_the_tourism-led-growth_hypothesis
[6] da Costa Ribeiro, Elvira, and Wang, B. 2020. Tourism Led Growth Hypothesis: Has the Tourism Industry an Impact on The Economic Growth of Sao Tome and Principe? International Journal of Economics and Financial Issues, 10(1): 180–85. DOI: https://doi.org/10.32479/ijefi.9105
[7] Fayissa, B., Nsiah, C. and Tadasse, B. 2008. Impact of Tourism on Economic Growth and Development in Africa. Tourism Economics, 14(4): 807–18. DOI: https://doi.org/10.5367/000000008786440229
[8] Gebrehiwot, K. G. 2019. Verifying Tourism-Led Growth Hypothesis (TLGH) in Ethiopia: Time Series Analysis. Journal of Tourism, Hospitality and Sports, 45: 1–11. DOI: https://doi.org/10.7176/jths/45-01
[9] Gunduz, L., and Abdulnasser Hatemi-J. 2005. Is the Tourism-Led Growth Hypothesis Valid for Turkey? Applied Economics Letters, 12(8): 499–504. DOI: https://doi.org/10.1080/13504850500109865
[10] Hvidt, M. 2014. Economic Diversification in GCC Countries: Past Record and Future Trends. Library Services. London, UK: Middle East Centre. Available at: http://eprints.lse.ac.uk/id/eprint/55252
[11] Hye, A., Muhammad, Q. and Khan, R.E.A. 2013. Tourism-Led Growth Hypothesis: A Case Study of Pakistan. Asia Pacific Journal of Tourism Research, 18(4): 303–13. DOI:https://doi.org/10.1080/10941665.2012.658412
[12] Katircioglu, S.T. 2009. Revisiting the Tourism-Led-Growth Hypothesis for Turkey Using the Bounds Test and Johansen Approach for Cointegration. Tourism Management, 30(1): 17–20. DOI:https://doi.org/10.1016/j.tourman.2008.04.004
[13] Khatai, A. and Ahmadova, N. 2020. Testing Tourism-Led Economic Growth and Economic-Driven Tourism Growth Hypotheses. Tourism, 68(1): 43–57. DOI: https://doi.org/10.37741/t.68.1.4
[14] Oh, Chi-Ok. 2005. The Contribution of Tourism Development to Economic Growth in the Korean Economy. Tourism Management, 26(1): 39–44. DOI: https://doi.org/10.1016/j.tourman.2003.09.014
[15] Pesaran, M. H., Shin, Y. and Smith R. J. 2001. Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16(3): 289–326. DOI: https://doi.org/10.1002/jae.616
[16] Saleh, A. S. et al. 2015. A Panel Cointegration Analysis of the Impact of Tourism on Economic Growth: Evidence from the Middle East Region. International Journal of Tourism Research, 17(3): 209–20. DOI: https://doi.org/10.1002/jtr.1976
[17] Salifou, C. K. and Haq, I. 2016. Tourism, Globalization and Economic Growth: a Panel Cointegration Analysis for Selected West African States. Current Issues in Tourism 20(6): 664–67. DOI: https://doi.org/10.1080/13683500.2016.1175421
[18] Shahzad, S.J., Shahbaz, M., Ferrer, R. and Kumar, R. R. 2017. Tourism-Led Growth Hypothesis in the Top Ten Tourist Destinations: New Evidence Using the Quantile-on-Quantile Approach. Tourism Management 60: 223–32. DOI: https://doi.org/10.1016/j.tourman.2016.12.006
[19] Škrinjarić, T. 2019. Examining the Causal Relationship between Tourism and Economic Growth: Spillover Index Approach for Selected CEE and SEE Countries. Economies 7(1): 1–19. DOI: https://doi.org/10.3390/economies7010019
[20] Tang, C. F. and Tan, E.C. 2013. How Stable Is the Tourism-Led Growth Hypothesis in Malaysia? Evidence from Disaggregated Tourism Markets. Tourism Management, 37: 52–57. DOI: https://doi.org/10.1016/j.tourman.2012.12.014
[21] Waheed, R., Sarwar, S. and Dignah, A. 2020. The Role of Non-Oil Exports, Tourism and Renewable Energy to Achieve Sustainable Economic Growth: What We Learn from the Experience of Saudi Arabia. Structural Change and Economic Dynamics, 55: 49–58. DOI: https://doi.org/10.1016/j.strueco.2020.06.005
[22] Ziadah, R. 2017. Constructing a Logistics Space: Perspectives from the Gulf Cooperation Council. Environment and Planning D: Society and Space, 36(4): 666–82. DOI: https://doi.org/10.1177/0263775817742916
[23] Cultural Statistics in the State of Qatar 2019 (2020). Available at: https://www.psa.gov.qa/en/statistics/Statistical%20Releases/Social/MediaCultureTourism/2019/cultural_statistics_2019_En.pdf
[24] Planning and Statistics Authority, CHAPTER VIII MEDIA, CULTURE AND TOURISM (2019). Available at: https://www.psa.gov.qa/en/statistics/Statistical%20Releases/Social/MediaCultureTourism/2019/8_Media_Culture_Tourism_2019_AE.pdf
[25] Planning and Statistics Authority, Qatar’s 2nd National Development Strategy 2018-2022 (2018). Available at: https://www.psa.gov.qa/en/knowledge/Documents/NDS2Final.pdf
[26] Qatar National Tourism Sector Strategy 2030 (2015). Available at: https://blogs.napier.ac.uk/qatar2022/wp-content/uploads/sites/29/2015/06/Qatar-National-Tourism-Sector-Strategy-2030.pdf
[27] Qatar Social Statistics 2009 - 2018 (2019). Available at: https://www.psa.gov.qa/en/statistics/Statistical%20Releases/Social/GenrealSocialStatistics/QatarSocialStatistics/Qatar_Social_Statistics_2009_2018_En.pdf
[28] Rep. OIC Statistics Database (OICStat) - Report. Ankara, Turkey: SESRIC, 2019. Available at: https://www.sesric.org/oicstat-result.php
[29] Sport in Qatar.” Government Communications Office. Accessed March 12, 2021. Available at: https://www.gco.gov.qa/en/focus/sport/
[30] “Tourism Sector Report.” Ministry of Commerce and Industry. Ministry of Economy and Commerce, February 2017. Available at: https://www.moci.gov.qa/wp-content/uploads/2018/08/2017- تقرير-قطاع-السياحة-فبراير.pdf
[31] “Tourism, Sports and Recreation.” https://hukoomi.gov.qa. Hukoomi Qatar e-Government. Accessed November 13, 2020. Available at: https://hukoomi.gov.qa/sites/portal-en/topics/tourism-sports-and-recreation.page
[32] “Tourism.” Government Communications Office. Accessed March 12, 2021. Available at: https://www.gco.gov.qa/en/focus/tourism/
[33] “Unified Visa for Gulf Cooperation Council Countries by 2014.” The Economic Times, August 26, 2013. Available at: https://economictimes.indiatimes.com/nri/visa-and-immigration/unified-visa-for-gulf-cooperation-council-countries-by-2014/articleshow/22065731.cms
[34] “World Cup Stadiums.” https://hukoomi.gov.qa. Hukoomi Qatar e-Government, September 8, 2020. Available at: https://hukoomi.gov.qa/en/article/world-cup-stadiums#tab1
[2] Antonakakis, N., Dragouni, M. and Filis, G. 2015. How Strong Is the Linkage between Tourism and Economic Growth in Europe? Economic Modelling, 44: 142–55. DOI: https://doi.org/10.1016/j.econmod.2014.10.018
[3] Aratuo, D. N., Etienne, X. L., Gebremedhin, T. and Fryson, D. M. 2019. Revisiting the Tourism-Economic Growth Nexus: Evidence from the United States. International Journal of Contemporary Hospitality Management, 31(9): 3779–98. DOI: https://doi.org/10.1108/ijchm-08-2018-0627
[4] Bassil, C., Hamadeh, M. and Samara, N. 2015. The Tourism Led Growth Hypothesis: the Lebanese Case. Tourism Review, 70(1): 43–55. DOI: https://doi.org/10.1108/tr-05-2014-0022
[5] Brida, J. G. and Pulina, M. 2010. Working paper. A Literature Review on the Tourism-Led-Growth Hypothesis. Cagliari, Italy: CENTRO RICERCHE ECONOMICHE NORD SUD (CRENoS), 2010. Available at: https://www.researchgate.net/publication/254399592_A_literature_review_on_the_tourism-led-growth_hypothesis
[6] da Costa Ribeiro, Elvira, and Wang, B. 2020. Tourism Led Growth Hypothesis: Has the Tourism Industry an Impact on The Economic Growth of Sao Tome and Principe? International Journal of Economics and Financial Issues, 10(1): 180–85. DOI: https://doi.org/10.32479/ijefi.9105
[7] Fayissa, B., Nsiah, C. and Tadasse, B. 2008. Impact of Tourism on Economic Growth and Development in Africa. Tourism Economics, 14(4): 807–18. DOI: https://doi.org/10.5367/000000008786440229
[8] Gebrehiwot, K. G. 2019. Verifying Tourism-Led Growth Hypothesis (TLGH) in Ethiopia: Time Series Analysis. Journal of Tourism, Hospitality and Sports, 45: 1–11. DOI: https://doi.org/10.7176/jths/45-01
[9] Gunduz, L., and Abdulnasser Hatemi-J. 2005. Is the Tourism-Led Growth Hypothesis Valid for Turkey? Applied Economics Letters, 12(8): 499–504. DOI: https://doi.org/10.1080/13504850500109865
[10] Hvidt, M. 2014. Economic Diversification in GCC Countries: Past Record and Future Trends. Library Services. London, UK: Middle East Centre. Available at: http://eprints.lse.ac.uk/id/eprint/55252
[11] Hye, A., Muhammad, Q. and Khan, R.E.A. 2013. Tourism-Led Growth Hypothesis: A Case Study of Pakistan. Asia Pacific Journal of Tourism Research, 18(4): 303–13. DOI:https://doi.org/10.1080/10941665.2012.658412
[12] Katircioglu, S.T. 2009. Revisiting the Tourism-Led-Growth Hypothesis for Turkey Using the Bounds Test and Johansen Approach for Cointegration. Tourism Management, 30(1): 17–20. DOI:https://doi.org/10.1016/j.tourman.2008.04.004
[13] Khatai, A. and Ahmadova, N. 2020. Testing Tourism-Led Economic Growth and Economic-Driven Tourism Growth Hypotheses. Tourism, 68(1): 43–57. DOI: https://doi.org/10.37741/t.68.1.4
[14] Oh, Chi-Ok. 2005. The Contribution of Tourism Development to Economic Growth in the Korean Economy. Tourism Management, 26(1): 39–44. DOI: https://doi.org/10.1016/j.tourman.2003.09.014
[15] Pesaran, M. H., Shin, Y. and Smith R. J. 2001. Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16(3): 289–326. DOI: https://doi.org/10.1002/jae.616
[16] Saleh, A. S. et al. 2015. A Panel Cointegration Analysis of the Impact of Tourism on Economic Growth: Evidence from the Middle East Region. International Journal of Tourism Research, 17(3): 209–20. DOI: https://doi.org/10.1002/jtr.1976
[17] Salifou, C. K. and Haq, I. 2016. Tourism, Globalization and Economic Growth: a Panel Cointegration Analysis for Selected West African States. Current Issues in Tourism 20(6): 664–67. DOI: https://doi.org/10.1080/13683500.2016.1175421
[18] Shahzad, S.J., Shahbaz, M., Ferrer, R. and Kumar, R. R. 2017. Tourism-Led Growth Hypothesis in the Top Ten Tourist Destinations: New Evidence Using the Quantile-on-Quantile Approach. Tourism Management 60: 223–32. DOI: https://doi.org/10.1016/j.tourman.2016.12.006
[19] Škrinjarić, T. 2019. Examining the Causal Relationship between Tourism and Economic Growth: Spillover Index Approach for Selected CEE and SEE Countries. Economies 7(1): 1–19. DOI: https://doi.org/10.3390/economies7010019
[20] Tang, C. F. and Tan, E.C. 2013. How Stable Is the Tourism-Led Growth Hypothesis in Malaysia? Evidence from Disaggregated Tourism Markets. Tourism Management, 37: 52–57. DOI: https://doi.org/10.1016/j.tourman.2012.12.014
[21] Waheed, R., Sarwar, S. and Dignah, A. 2020. The Role of Non-Oil Exports, Tourism and Renewable Energy to Achieve Sustainable Economic Growth: What We Learn from the Experience of Saudi Arabia. Structural Change and Economic Dynamics, 55: 49–58. DOI: https://doi.org/10.1016/j.strueco.2020.06.005
[22] Ziadah, R. 2017. Constructing a Logistics Space: Perspectives from the Gulf Cooperation Council. Environment and Planning D: Society and Space, 36(4): 666–82. DOI: https://doi.org/10.1177/0263775817742916
[23] Cultural Statistics in the State of Qatar 2019 (2020). Available at: https://www.psa.gov.qa/en/statistics/Statistical%20Releases/Social/MediaCultureTourism/2019/cultural_statistics_2019_En.pdf
[24] Planning and Statistics Authority, CHAPTER VIII MEDIA, CULTURE AND TOURISM (2019). Available at: https://www.psa.gov.qa/en/statistics/Statistical%20Releases/Social/MediaCultureTourism/2019/8_Media_Culture_Tourism_2019_AE.pdf
[25] Planning and Statistics Authority, Qatar’s 2nd National Development Strategy 2018-2022 (2018). Available at: https://www.psa.gov.qa/en/knowledge/Documents/NDS2Final.pdf
[26] Qatar National Tourism Sector Strategy 2030 (2015). Available at: https://blogs.napier.ac.uk/qatar2022/wp-content/uploads/sites/29/2015/06/Qatar-National-Tourism-Sector-Strategy-2030.pdf
[27] Qatar Social Statistics 2009 - 2018 (2019). Available at: https://www.psa.gov.qa/en/statistics/Statistical%20Releases/Social/GenrealSocialStatistics/QatarSocialStatistics/Qatar_Social_Statistics_2009_2018_En.pdf
[28] Rep. OIC Statistics Database (OICStat) - Report. Ankara, Turkey: SESRIC, 2019. Available at: https://www.sesric.org/oicstat-result.php
[29] Sport in Qatar.” Government Communications Office. Accessed March 12, 2021. Available at: https://www.gco.gov.qa/en/focus/sport/
[30] “Tourism Sector Report.” Ministry of Commerce and Industry. Ministry of Economy and Commerce, February 2017. Available at: https://www.moci.gov.qa/wp-content/uploads/2018/08/2017- تقرير-قطاع-السياحة-فبراير.pdf
[31] “Tourism, Sports and Recreation.” https://hukoomi.gov.qa. Hukoomi Qatar e-Government. Accessed November 13, 2020. Available at: https://hukoomi.gov.qa/sites/portal-en/topics/tourism-sports-and-recreation.page
[32] “Tourism.” Government Communications Office. Accessed March 12, 2021. Available at: https://www.gco.gov.qa/en/focus/tourism/
[33] “Unified Visa for Gulf Cooperation Council Countries by 2014.” The Economic Times, August 26, 2013. Available at: https://economictimes.indiatimes.com/nri/visa-and-immigration/unified-visa-for-gulf-cooperation-council-countries-by-2014/articleshow/22065731.cms
[34] “World Cup Stadiums.” https://hukoomi.gov.qa. Hukoomi Qatar e-Government, September 8, 2020. Available at: https://hukoomi.gov.qa/en/article/world-cup-stadiums#tab1
Published
2021-03-29
How to Cite
OZTURK, Ozcan; AL-KUWARI, Maryam.
The Contribution of Tourism to Economic Growth: The Case of Qatar.
Journal of Environmental Management and Tourism, [S.l.], v. 12, n. 2, p. 598-607, mar. 2021.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/5982>. Date accessed: 15 nov. 2024.
doi: https://doi.org/10.14505//jemt.v12.2(50).29.
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.