Tourism Competitiveness and Corruption: A Cross-Country Analysis

Abstract

No prior research has considered the role corruption plays in a country's ability to compete globally in the tourism industry. Using the 2008 Travel and Tourism Competitiveness Index, a comprehensive measure of tourism competitiveness developed by the World Economic Forum, the 2006 Corruption Perception Index published by Transparency International and data from 119 countries, this study provides evidence that a reduction in corruption levels impacts positively on the level of tourism competitiveness across nations. The study also finds that the marginal gain in tourism competitiveness from a reduction in corruption levels is greater for developing countries than for developed countries.