Drivers of growth and catch-up in the tourism sector of industrialized economies

Khuong VU, Kris HARTLEY

Research output: Contribution to journalArticlespeer-review

Abstract

COVID-19 decimated global tourism. As governments and firms strategize the sector's recovery, insights from the sector's prepandemic period of high growth offer useful policy lessons. This study examines the drivers of the tourism sector's growth and catch-up performance in 13 industrialized economies over the period 2000–2015, using data from the EU-KLEMS database. The findings have three notable policy implications. First, the tourism sector in most countries experienced significant growth. However, value-added growth was driven largely by labor employment expansion while labor productivity declined in most countries. Second, weak investment in non–information and communications technology (ICT) capital and declining total factor productivity are the principal impediments to labor productivity growth. Third, all countries embraced digital transformation but many lagged on innovation and labor quality. These findings are analyzed to identify policy strategies for the tourism sector's postpandemic recovery. Copyright © 2021 The Author(s).
Original languageEnglish
JournalJournal of Travel Research
Early online dateJun 2021
DOIs
Publication statusE-pub ahead of print - Jun 2021

Citation

Vu, K., & Hartley, K. (2021). Drivers of growth and catch-up in the tourism sector of industrialized economies. Journal of Travel Research. Advance online publication. doi: 10.1177/00472875211019478

Keywords

  • Tourism
  • Public policy
  • Productivity
  • Industrialized economies
  • Growth decomposition
  • ICT
  • R&D

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