Abstract
The tourism-poverty alleviation nexus is becoming an increasingly significant subject of academic inquiry within the tourism economics discourse. Using time series data from the World Bank (1995–2017) in a P-ARDL model, the present study explores the relationship between tourism (receipts from exports, the travel subsector, hospitality and accommodation subsector) and poverty alleviation (final household consumption) with tourism arrivals as the control variable within the context of the BRICS group. The results suggest that receipts from the travel subsector and exports met the a priori expectation – positively influencing poverty alleviation within BRICS nations in the long run. Contrastingly, receipts from the hospitality and accommodation subsector did not meet the a priori expectation of a positive sign, with the results indicating statistical insignificance in the long run. However, receipts from the hospitality and accommodation were found to only influence poverty alleviation in the short run. Relatedly, the results suggest that increases in consumption associated with growth in tourism arrivals did not influence poverty in the BRICS. The results point to the heterogeneity of the influence of tourism on poverty alleviation, whereby certain dimensions of tourism contribute to poverty alleviation in the long run and others do so in the short run. Based on these findings it is recommended that BRICS countries harness their tourism potential and promote intra-BRICS tourism to maximise the positive impact of travel and tourism export receipts on household consumption, which catalyses poverty alleviation.
Highlights
The global tourism industry recorded upwards of 1.5 billion international tourist arrivals in 2019, representing a 4% (54 million tourists) growth in international tourism, with emerging economies – including the BRICS (Brazil, Russia, India, China, and South Africa) nations - accounting for 46.9% (685 million tourists) of all global tourism arrivals (World Tourism Organization – UNWTO, 2020)
The findings revealed that tourism receipts from travel and exports positively impacted poverty alleviation in the BRICS nations in the long-run, while the receipts from hospitality and accommodation only had an influence on poverty alleviation in the short-run
The findings appear to complement the literature by illustrating the heterogeneity of the impact of tourism on host economies within the poverty alleviation context due to the multidimensionality of the tourism construct
Summary
The global tourism industry recorded upwards of 1.5 billion international tourist arrivals in 2019, representing a 4% (54 million tourists) growth in international tourism, with emerging economies – including the BRICS (Brazil, Russia, India, China, and South Africa) nations - accounting for 46.9% (685 million tourists) of all global tourism arrivals (World Tourism Organization – UNWTO, 2020). According to the most recent data, the global tourism sector’s (in)direct and induced economic activity contributed USD$ 8.8 trillion to the global Gross Domestic Product (GDP) and accounted for 10% (319 million) of all the employment worldwide (World Travel and Tourism Council – WTTC, 2019). Tourism arrivals and receipts data suggest that in 2017 and 2018, BRICS nations attracted a combined estimated 239.5 million international travelers, who generated at least USD$185.1 billion in tourism receipts (UNWTO, 2019), illustrating the significance of BRICS nations within the contemporary global tourism industry. Multi-country studies would make a very distinct contribution to the literature With this in mind, the present study seeks to explore the tourism-poverty alleviation nexus in the case of BRICS nations
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