The contribution of tourism industry on the GDP growth of Western Balkan countries

• Main Authors: Čerović Slobodan, Knežević Miroslav, Matović Vladimir, Brdar Ivana
• Format: Article
• Language: English
• Published: Economics institute, Belgrade 2015-01-01
• Series: Industrija
• Subjects: tourism industry; economic impact; GDP; Western Balkans
• Online Access: http://scindeks-clanci.ceon.rs/data/pdf/0350-0373/2015/0350-03731503159C.pdf

Tourism industry records various economic, social, political and others influences and provides itself important position in the overall economic development of many countries. The analysis of the available data of tourist arrivals and number of tourist overnight stays in observed countries of the Western Balkans (Serbia, Macedonia, Montenegro) led us to conduct research in order to determine tourism contribution to the overall economic growth. Based on the modified methodology used by Brida et al. (2008) for calculating real GDP growth rates and tourism contribution to the overall economic growth, the paper indicates that tourism makes a modest direct contribution to the overall economic growth in the examined countries, regardless of the continuous increase in the number of foreign tourist arrivals. The level of tourism contribution to the overall economic growth varies and it is primarily related to diversity and quality of supply (the highest contribution is recorded in Montenegro, while lowest contribution is observed in Macedonia).