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IDOSR JOURNAL OF BANKING, ECONOMICS AND SOCIAL SCIENCES 1(1): 63-69, 2016.
©IDOSR PUBLICATIONS
International Digital Organization for Scientific Research ISSN:2579-082X
IDOSR JOURNAL OF BANKING, ECONOMICS AND SOCIAL SCIENCES 1(1): 63-69, 2016.
Tourism and Economic Growths in Africa an Insight
Nicholas Attamah
Department of Economics Enugu State University of Science and Technology (ESUT) Enugu,
Nigeria.
ABSTRACT
Tourism is one of the primary drivers of economic growth and job creation in emerging
economies throughout the world. Africa‟s unique history and natural wonders are gaining
attention amid the local and global increase in cultural, heritage, and development
tourism. Based on analyses of various countries‟ governance and business environments, it
is clear that numerous African countries present tremendous promise to become or remain
vibrant hosts for tourists, investors, and entrepreneurs, which can drive employment for
low-skilled workers and economic inclusion for women and youth. A recent World Bank
study classified African countries into four performance categories: “pre-emergent,”
“potential,” “emerging,” and “consolidating” tourism destinations. The performance of
countries was based on indicators such as the ease of doing business; the competitiveness
in terms of tourism regulation, infrastructure, and resources; the tourism receipts per long-
haul arrivals; the international arrival per head of population; and the forecast of growth in
tourism arrivals. Tourism has since become integral to economic development policies.
Several countries recently increased their efforts to advance their travel and tourism
industries.
Keywords: Economic, Growth, Tourism and Policy
INTRODUCTION
For over 30 years, WTTC has conducted research on the economic impact of Travel &
Tourism in 185 countries and issues such as overcrowding, taxation, policy-making, and
many others to raise awareness of the importance of the Travel & Tourism sector as one of
the world‟s largest economic sectors. Tourism is a powerful vehicle for economic growth
and job creation all over the world. The tourism sector is directly and indirectly
responsible for 8.8 percent of the world‟s jobs (258 million); 9.1 percent of the world‟s GDP
(US$6 trillion); 5.8 percent of the world‟s exports (US$1.1 trillion); and 4.5 percent of the
world‟s investment (US$652 billion) [1]. The World Travel & Tourism Council estimates that
3.8 million jobs (including 2.4 million indirect jobs) could be created by the tourism
industry in Sub-Saharan Africa (SSA) over the next 10 years. Tourism‟s main comparative
advantage over other sectors is that visitor expenditures have a “flow-through” or catalytic
effect across the economy in terms of production and employment creation. During the
construction phase of tourist accommodation and services, tourism creates jobs in that
sector. If the country is sufficiently developed, the investment can generate demand locally
for furniture and furnishings, and even for capital equipment. Tourism also generates a
demand for transport, telecommunications and financial services [2]. Through
consumption of local products in tourist accommodation, restaurants and food markets,
and through the additional expenditures outside the accommodation, tourists stimulate
demand for agriculture, fisheries, food processing, and light manufacturing products, such
as the garment industry, as well as for handicrafts and the goods and services of the
informal sector [3]. Estimates of such expenditures vary according to the local
circumstances but can range from half to nearly double expenditures in tourist
accommodation. Similarly, tourism can act as a catalyst for the development of small
businesses in related production and service sectors [4]. Notably, tourism can provide an
economic base for a region whose only development options are its cultural and natural
resources, whether coastal, mountain, or wildlife or a combination of these. However,