Contribution of tourism to economic development in selected European countries
DOI:
https://doi.org/10.5937/bizinfo2402083PKeywords:
tourism development, economic impact, cluster analysis, entropyAbstract
The aim of the study is to explore the interplay between fundamental indicators related to tourism's contribution to economic development. These indicators encompass Total contribution to Employment, Direct contribution to Employment, Total contribution to GDP, Direct contribution to GDP, Capital Investment, and Visitor Exports - Foreign Spending. A cluster analysis of the 30 studied countries was formed based on the entropy results as a measure of equality. The research relies on data from the TTDI Index for the year 2019, as published by the World Economic Forum. The Kruskal-Wallis test highlighted the differences between the clusters. The entropy results support the the cluster analysis, as the coastal countries show the highest values of these indicators.The contribution of tourism to the European economy is imperative for countries to develop strategies for the exploitation of natural and cultural assets.The practical implications emphasize the need for greater investment and foreign spending.
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