International Tourism and Opportunities for Economic Development in India

Abstract

This chapter sought to find the long-run relationships between international tourist arrivals in India with economic variables such as GDP, transportation costs and the exchange rate for the period from 2002-2015. The cointegration techniques used was based on Panel Cointegration Test as well as both the OLS estimator and DOLS estimators were used to find long-run relationship of the international tourism demand model for India. The long-run results indicate that growth in income (GDP) of India's major tourist source markets has a positive impact on international visitor arrivals to India. Finally when the value of India's currency strong than the value of these country's currency increasing 1% then the number of international visitor arrivals to India decreasing 0.003% to 0.006%. Furthermore mostly findings were consistent with economic theory and the implications of the model can be use for policy making.