Contribution of tourism to economic growth: An analysis on the mauritius country

Tourism is no longer just a social phenomenon for some individuals and groups. It has become a social and economic activity due to the influx of hundreds of millions of tourists in various countries and tourist areas, forcing all countries to promote the tourism sector and make it a real sector and a growth tool. During this period, the tourism sector has become faster and more developed than any other sector. Tourism is therefore an effective way of attracting hard money, absorbing unemployment, improving the state's balance of payments and increasing GDP, primarily because it is labor-intensive, that many countries pay particular attention to this sector. In this study, tourism is an essential component of the economic growth in Mauritius and aims to show the contribution of the sector in Mauritius to economic growth. The annual data covering the period of 1983-2017 follows the empirical analysis of the long-term relations between the tourism sector and economic growth. In this context, GDP, The variables used in tourism revenues and employment are econometically tested from contemporary series methods. According to the two co-integration findings, tourism revenues contributed to the economic growth of Mauritius. The Granger causality test results were found to be co-integrated between variables. According to the Granger causality test, Mauritius has a single causal effect on economic growth. Therefore, tourism revenues contributed to economic growth of the Mauritius.