Tourism as a long-run economic growth factor: the Spanish case

TLDR

The study investigates how tourism contributes to Spain’s long‑run economic growth. The authors use cointegration and causality tests to confirm the tourism‑led growth hypothesis. Results show that sustained growth in international tourism, its multiplier effects, and external competitiveness drive Spain’s economic growth, and that supportive government policies can further enhance income.

Abstract

This paper examines the role of tourism in the Spanish long-run economic development. The tourism-led growth hypothesis is confirmed through cointegration and causality testing. The results indicate that, at least, during the last three decades, economic growth in Spain has been sensible to persistent expansion of international tourism. The increase of this activity has produced multiplier effects over time. External competitivity has also been proved in the model to be a fundamental variable for Spanish economic growth. From the empirical analysis it can be inferred the positive effects on income that government policy, in the adequacy of supply as well as in the promotion of tourist activity, may bring about.