Study on the Relationship between Tourism and the Performance of the Zimbabwean Economy

Daniel Toindepi Mukonto¹ , Cheng Jian²

Section:Research Paper, Product Type: Journal-Paper
Vol.8 , Issue.2 , pp.18-21, Jun-2020

Online published on Jun 30, 2020

Copyright © Daniel Toindepi Mukonto, Cheng Jian . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The prospect of tourism growth as a tool for promoting economic resilience in developing economies, diversifying from dependence on extractive industries is interesting. The purpose of this study is to investigate the relationship between tourism and the economic performance of Zimbabwe. Using a bivariate unrestricted Vector Autoregressive model and granger causality, this study analyzed the short-run relationship between gross domestic product (GDP) and tourism receipts, using annual data from 1990-2018. The lagged values of GDP and tourism receipts were found to be significant in estimating GDP in the short-run. The results also show a unidirectional, positive causal relationship, where tourism receipts granger causes GDP. The study outlines the significance of the tourism sector in improving the economic performance of Zimbabwe, thus interventions to improve the sector will yield positive results in the short-run. Capital investment in tourist areas will lead to an improvement in the quality of service and infrastructure in these areas to boost tourism growth. Further studies are needed to investigate the multiple effects of tourism in Zimbabwe.

Key-Words / Index Term :
Tourism Impact, VAR, Granger Causality, Zimbabwe

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