Evaluating the role of tourism in the economic development of the Republic of Armenia and other member states of the Eurasian Economic Union

Abstract

Tourism has a significant role in the economies of many countries. It creates jobs, brings money, promotes investments, decreases poverty, develops infrastructures, etc. Many research works try to evaluate the role of tourism development on the economy. The article evaluates the role of tourism development in the economy of Armenia and checks the Tourism-Led Growth Hypothesis (TLGH). With the help of statistical methods, the article evaluates the connections between tourism total expenses (visitor exports, domestic spending, government spending, and capital investment), the number of tourists and tourism total contribution to GDP, employment and other indicators. Besides, the correlation analysis between these indicators was done for the Member States of the Eurasian Economic Union. The results show that the increase in tourism expenses and the number of tourists will increase GDP and employment. However, the change in tourism contribution to employment is not so high, which was explained by different reasons. The same is the case for other countries of the Eurasian Economic Union. The article results may be helpful for future studies, as well as for government agencies for evaluating tourism contribution to economic development and for elaborating tourism development policies.