IMPACT OF TOURISM INDUSTRY ON

ECONOMIC GROWTH IN THAILAND

2117019GANES
H

RESEARCH PAPER 2

Objectives:
a. It ascertain the direct correlation between tourist arrivals, tourism expenditure,
and economic growth indicators like GDP and employment rates in Thailand.
b. It analyze the socio-economic effects of tourism on local communities, including
income distribution, infrastructure development, and employment opportunities.
c. It assess the influence of government policies and initiatives on the tourism
sector and their impact on economic growth.
d. It propose strategies for sustainable tourism development that balances
economic progress with environmental and cultural preservation.
Literature Review:
a. A review of academic studies, economic models, and empirical research
exploring the relationship between the tourism industry and economic growth in
Thailand.
b. Examination of scholarly articles and reports focusing on the socio-economic
impacts of tourism, including income distribution, employment generation, and
infrastructure development.
c. Analysis of government policies, regulations, and initiatives aimed at fostering
and regulating the tourism industry in Thailand.
 Source of Data:

Primary data
collection through surveys and interviews with stakeholders in the tourism sector,
government officials, and local communities.
Dependent Variable:

Economic growth indicators such as ADF TEST, PP TEST

Independent Variable:

tourist arrivals, tourism expenditure, tourist satisfaction levels, and government

policies/regulations pertaining to the tourism sector..
Base Mode of Data:

Qualitative data because it interviews and case studies to explore the socio-
economic impacts of tourism on local communities and cultural heritage..
Conclusion
This paper examines the cointegration and causal relationships between the
number of international tourist arrivals to Thailand and economic growth. Unit root
test, cointegration test by using ARDL, rolling window regression and Granger
causality test is employed in the approaches. I suggest that Thailand should
concentrate on shock management for examples political instability, flood
management in the short-term and continuously expands new tourism products for
holding the number of international tourist arrivals in the long-term. These are led
to enhance economic growth sustainability in Thailand.