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Tourism and urban economic growth: A panel analysis of German cities

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  • Bart Neuts

    (Auckland University of Technology, New Zealand)

Abstract

Even though cities are among the most important tourist destinations, research on tourism as a vehicle for economic growth – most often approached via the tourism-led growth hypothesis (TLGH) – has predominantly been limited to countries. This study explores the validity of the TLGH in an urban context. Panel data were collected for 89 German cities on different indicators of urban economic growth. Pedroni panel cointegration confirmed a long-term equilibrium between tourism, local business tax revenue, income tax revenue and real GDP, indicating that even for cities within a strong, developed economy, tourism contributes to wealth creation. A Panel Granger causality analysis established a one-way Granger causal relationship from tourism to local business tax and income tax and a bidirectional relationship between tourism and real GDP. This causal relationship was stronger for cities with a high to medium tourism intensity.

Suggested Citation

  • Bart Neuts, 2020. "Tourism and urban economic growth: A panel analysis of German cities," Tourism Economics, , vol. 26(3), pages 519-527, May.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:3:p:519-527
    DOI: 10.1177/1354816619833553
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    References listed on IDEAS

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    Cited by:

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    2. Ahmad Roumiani & Abdul Basir Arian & Hamide Mahmoodi & Hamid Shayan, 2023. "Estimation and prediction of ecological footprint using tourism development indices top tourist destination countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 1084-1100, April.
    3. Vladimir Pavković & Darjan Karabašević & Jelena Jević & Goran Jević, 2021. "The Relationship between Cities’ Cultural Strength, Reputation, and Tourism Intensity: Empirical Evidence on a Sample of the Best-Reputable European Cities," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    4. Azmat Gani, 2022. "Using a consumer choice model to explain the effect of the newly developed oxford COVID-19 government stringency measure on hotel occupancy rates," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4313-4333, December.
    5. Jinkun Yang & Haitao Ma & Lisheng Weng, 2022. "Transformation of Rural Space under the Impact of Tourism: The Case of Xiamen, China," Land, MDPI, vol. 11(6), pages 1-12, June.
    6. Jiaxin Tan & Kai Wang & Chang Gan & Xuefeng Ma, 2023. "The Impacts of Tourism Development on Urban–Rural Integration: An Empirical Study Undertaken in the Yangtze River Delta Region," Land, MDPI, vol. 12(7), pages 1-18, July.

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