Tourism as a Driver of Economic Development: The Colombian Experience

37 Pages Posted: 5 Aug 2014

See all articles by Andreja Benkovic

Andreja Benkovic

University of Hohenheim - Faculty of Business, Economics and Social Sciences

Juan-Felipe Mejia

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Date Written: October 20, 2008

Abstract

The current paper analyzes the importance and potentials of the tourism sector for economic development. It is divided into four major parts. After a short introduction, section two presents some theoretical insights into the topic of economic development. Commenting on the most relevant components of the catching-up theory by Abramovitz (1986) and the structural change theory by Baumol (1967) and others, it could be realized that growth and the accompanying structural changes in the distribution of employment and GDP have their sources in the sector industry. But at the moment of incorporating the demand side explanation of structural change, the service sectors offer growth potentials as well. Furthermore, the basic characteristics and importance of the tourism sector for economic development and employment are emphasized, examining the so-called “social capabilities” and the innovation potential within the process of economic growth of any nation. A short survey of literature concerning the contribution of this sector to economic growth makes clear that tourism should be considered not just from the perspective of the benefits, but also from the costs associated with it.

Section three provides an analysis of the economic impact of tourism in a developing country, namely Colombia, based on time-series analysis and data gathered supported on the “Tourism Satellite Account” Methodology. Some relevant indicators produced by the World Economic Forum through its “Travel and Tourism Competitiveness Report”, are also evaluated. Finally, some conclusions are drawn with respect to the potentialities, as well as the challenges identified for the Colombian case.

Keywords: structural change, service sectors, social capabilities, economic development, tourism, Colombia

JEL Classification: L83, L86, L88, O1, O54, Q01, Q5

Suggested Citation

Benkovic, Andreja and Mejia, Juan-Felipe, Tourism as a Driver of Economic Development: The Colombian Experience (October 20, 2008). Center for Research in Economics and Finance (CIEF), Working Papers, No. 08-08, Available at SSRN: https://ssrn.com/abstract=2475871 or http://dx.doi.org/10.2139/ssrn.2475871

Andreja Benkovic

University of Hohenheim - Faculty of Business, Economics and Social Sciences ( email )

Germany

Juan-Felipe Mejia (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

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