of course, tourism fall in to services industry. and services industry is one of the major growing component of gdp

Tourism is part of a diversified economy. Security (including general public safety) is generally a prerequisite for this sector.

MENA countries often suffer from Dutch disease-like effects which make their tourism sectors less competitive than they would otherwise be. But nevertheless, they have many locations which are very nice (beaches, mountains and trekking areas, cultural odditities from European perspective, etc) and which are much lower cost than many other places.

Consider Morocco. You can fly there on Ryan Air often for 50 euros. Consider Egypt. It's a bit pricier to get there, but you can live extremely comfortably at the beach for $20-30 a day if you don't get into the 4WD adventures or deep sea diving.

In the case of Egypt, absolutely, tourism has historically been very important. If I recall correctly, in many years (probably not recent ones) the sector has accounted for a full 70% of foreign exchange entering the country.

Also consider Jordan, and Petra. At 50-70 euros for 1-3 day entry, this site alone is an important source of public revenues.

Clearly security problems lead to underdevelopment of the sector, while the sector would be more competitive if currencies were not so highly valued as a result of exchange effects of large hydrocarbon sectors. Morocco and Egypt DO have hydrocarbon sectors, but their relative weight in the economy is not that large. Is it a coincidence that they have both an easier time maintaining security and have comparatively competitive tourism sectors?

I think the number one thing negatively impacting tourism in MENA countries, aside from paranoia about Muslims or real security risks/concerns, is that people fear that, having visited some "Muslim country", that they will be tarred as perhaps a security risk, a potential converted radical extremist, or what have you. For example, people could ask "so ... just why did you visit there? Aren't there Muslims there?" and do so in a manner which suggests that possibly people who go to countries with majority Muslim populations are security risks for their home countries. Morocco is not Afghanistan. Nor is Egypt. But in both cases, you will find that most Muslims are decent people.

Effective tourism development in any country with majority Muslim populations will have to confront these stereotypes somehow. Perhaps pushing the perspective that, religion aside, Muslims mostly want stable communities with economic opportunities, and that while it is always good to respect local norms, that Muslims, like most people out there, are quite able and willing to respect just about anyone (who can reciprocate) when they find themselves face to face.

Indeed, I believe tourism does promote economic growth in a significant way. This is because developing tourism means developing other sectors of the economy that are directly or indirectly related to it. For example, transport, restaurants, banking, arts and crafts...etc. All of these sectors create jobs, value and wealth in the short and long terms. The aggregate effects of tourism promote both the cultural potential of a given country as well as its economic one.

I agree with many positive effects of tourism. Take the case of Thailand but also there are some negatives as well. Sustainable tourism is sometimes hard. Community should be aware of all these aspects.

Apparently the relationship between tourism and growth is postive. But this means nothing if we do not take into account institutions and governance (human capital externalities, wages ...)

Good luck the subject is interesting

Tourism by itself brings about only economic growth but not economic development.  it is very important to clearly defne the role of tourism for the economy.  The critical issue is to be able to craft a strategy that incorporates the entire tourism system in order to achieve economic development.

Tourism itself can have a negative effect akin to the Dutch disease. One of my phd students has a paper that shows that countries that are highly open to trade and also tourism at the same time have slower growth, holding everything else constant (in other words, the interaction term combining trade openness and tourism is negative). 

Message me if you would like a copy of the paper. 

Yes, Jan.  I agree.  I once noticed that there was an inverse relationship between the HDI and tourist arrivals in the Caribbean.  A colleague expaned it to SIDS conducted research which shows an association between the quality of life in a SIDS and arrivals.  The critical correction is the management of tourism as a tool for economic development.  This is most cases has not been accomplished.

Hi Jan, can you send me a copy of the paper? Thanks

In response to Mohamed Benmerikhi, let me differ a bit in saying that the benefits of linkages are significantly reduced when the tourism business model is based on the All Inclusive motif, which is practiced in sun ,sea and sand destinations, like the caribbean and other warm climate regions. The enclaves are like land based cruise ships, with all amenities within the compound, negating any need to wander far afield, spreading money among the local population. As a matter of course, tourists are warned not to leave the compounds for any trivial reason, due to perils real and imagined. It is an ecosystem which is controlled by corporate management, with tour operators deciding which airlines go to which countries, and hotel ownership deciding who gets the plum jobs, and where the supplies such as food and liquor come from.  A hotel in Barbados, for example, could be getting lettuce from Miami, not because it could not be produced locally, but because of corporate connections. In summary, with leakages and profit repatriations factored into the equation, maybe 5 cents of every tourist dollar remains in the economy of the host destination.

yes of course this is the important sector for the development of the transition countries and these countries are looking in to tourism as a tool for economical development as this industry is light industry and they are using immovable and intangible assets therefore this is the best way for economic growth 

yes it promotes economic growth here i am sending you the link for some papers which will help you in this regard

Data TISM Himalayan Tourism Inudstry

Data ISM HImalayan Tourism Industry

Chapter STATUS AND SCENARIO OF TOURISM INDUSTRY IN INDIA – A CASE ST...

Chapter Prospects and Problems of Tourism Industry in Uttarakhand

It contributes to economic growth but not economic development unless it is carefully and stragetically managed.

http://cmss.univnt.ro/wp-content/uploads/vol/split/vol_III_issue_1/CMSS_vol_III_issue_1_art.009.pdf

http://dergipark.gov.tr/download/article-file/364164

http://www.ecoforumjournal.ro/index.php/eco/article/view/473

Article Does Tourism Development Promote Economic Growth in Transiti...

Article Does Tourism Development Promote Economic Growth in Transiti...

Yes it does. Tourism increases foreign exchange earnings, which in turn can be used to finance imports,

it encourages investment and drives local firms toward greater efficiency due to the increased competition, it alleviates unemployment.

Dear Chuck,

Indeed, in theory it does. However, we have observed in many countries that it also creates other problems. Also, long term observations of certain transition economies have revealed meager positive economic effects due to tourism as an economic sector.

A transition country means that the country is making a structural adjustment from a state-run economy toward a more market-led system.

Tourism generates income for a variety of businesses and creates a wide spectrum of employment opportunities. On a global scale, hence, it is seen as one of the world's largest and fastest-growing industries that foster economic growth.