A DYNAMIC PANEL ANALYSIS OF THE EFFECTS OF INTERNATIONAL TOURISM EXPORTS ON AFRICAN ECONOMIC GROWTH BY

Tourism has continued driving itself onto the radar of developing countries’ policy makers. The growth of tourism has been sustained at 7-12 % per year in most developing countries in the last five years (ODI, 2007). At the local and international level, it is being seen as an impetus to sustained growth and development, and no longer as a generator of foreign exchange. It is often included in more than 80 % of low income counties Poverty Reduction Strategies (ODI, Ibid). However, practical action to harness tourism for sustained growth and development is being hindered by the elusive nature of the evidence on pro-poor impact, and the policy void on tourism that exists in many donor and financing organisations. Tourism generates a vital amount of foreign exchange earning that also contributes to the sustainable economic growth and development of developed world. However, such component of growth has not been effectively and appropriately utilized by African countries. World Tourism Organisation (2008) report shown that in 2007, about $856 billion was generated from 908 million of tourists (excluding transport). In the same year, the share of Africa in global tourist arrivals was abou