Fourth International Conference on Tourism and Leisure Studies

Abstract

After having demonstrated the relationship between tourism and economic growth, tourism-led economic growth (TLEG) and economic-driven tourism growth (EDTG), the scientific literature was concerned with studying the possible relationship between tourism and economic development, limiting itself to analysing a possible unidirectional relationship between tourism, economic growth, and economic development. In this context, the aim of this paper is to determine if the relationship between tourism and economic development is bidirectional, given that, although tourism can be a tool for economic development, it is also true that a higher level of economic development influences the expansion of tourism activity. Using a sample of 143 countries, and applying confirmatory factor analysis together with a structural equation model, the bidirectional relationship between tourism and economic development is confirmed. Therefore, although tourism activity and economic development face different challenges, if public policies work in a coordinated manner, they may contribute significantly to improving economic development in countries where tourism activity takes place.