Diversity, Tourism, and Economic Development: A Global Perspective

Abstract

International tourism enhances understanding and interaction between nations and people, or can generate conflicts due to cultural misunderstandings. In this globalized world, diversity on one side plays a vital and essential role in international tourism and economic development but on the other side ethnic, cultural, and religious polarization resulting in conflicts, difficulties that may frighten away tourists and lead to vulnerability of the tourism sector in very heterogeneous countries. This study investigates whether existing ethnic and religious diversity affects the international tourism and economic development. By using the dataset of 187 countries and panel data technique, this study indicates that diversity, either ethnic or religious or both, has a significant negative impact on international tourism and economic development. This study suggests that ethnic and religious diversity is an inherent part of most societies in a globalized world so in order to minimize its negative consequences there is emergent need to provide equal opportunity to all groups and to encourage cohesive culture. A cohesive and peaceful society can enhance tourism.