Relationship Between Tourism and Economic Growth

The main goal of this paper is to determine whether tourism activity stimulates economic growth. The study indicates the main variables affecting tourism activity and shows a feedback effect between income and tourism. Findings indicate that tourism not only supplies necessary funds to finance firms\u27 activities, but also stimulates the local firms\u27 productivity and creates new job opportunities that increase the country\u27s welfare. Variables that have important effects on tourism activity, such as entrepreneurship and prices have also been considered