The impact of tourism on economic growth in Sri Lanka: An ARDL bound test approach
The tourism is most appropriate industry for sustainable development and growth. It creates economic returns through the intangible values of a country’s nature and cultures. Similarly, Sri Lankan tourism industry also is being as a major foreign currency earner in the economy, continued its growth momentum until now. Therefore, the objective of the study is to examine the impact of tourism on economic growth in Sri Lanka using the Autoregressive Distributed Lag Bound test approach. The analysis was carried out for the period from 1977 to 2016. The results found that the tourism industry impacts positively on economic growth in Sri Lanka. Henceforth, it is essential to accelerate tourism development activities towards high value sector in order to enhance economic growth through attracting more high spending tourists and pushing up tourism receipts. Additionally, macroeconomic policies must to be taken into act to stimulate tourism development through utilize untapped tourism resources in Sri Lanka.