THE RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH IN PAKISTAN ECONOMY: A TIME SERIES ANALYSIS

Abstract

This research aims to examine the role of tourism on economic development in the context of Pakistan and to analyze the current and emerging issues in the tourism sector. By adopting time series analysis as a method of research, the study identifies the effects of tourism on related factors, including the Gross Domestic Product, employment, and foreign exchange earnings, and tourism factors such as tourist arrivals and departures, tourism receipts and investment. The study establishes that increased tourism leads to the economic development of a country, but this is mediated by factors like political systems, insecurity, and infrastructure. This type of inefficiency raises several issues that have a negative impact on the development of the sector poor policy implementation and weak investment in transport, accommodations, and facilities. Considering these findings, the paper presents specific policy implications that may be useful for improving the tourism infrastructure, marketing and promotion, accelerating economic reforms, encouraging multi-actor cooperation, and achieving sustainable tourism.