Research on Infulence of Tourism on Economy

Tourism can enhance economic growth and can also benefit from the growth. In this paper, in order to identify the mode of tourism-economy relationship, a multi-dimensional time series of both tourism and economy was analyzed with principal component analysis (PCA). Our results revealed that, in 1989, most of the European countries shared a similar mode, in which tourism had a great contribution to both GDP and employment, and the capital investment was at a high level. In 2000, the developing countries advanced so much that their tourism-economy mode was similar to that of the developed countries. In 2011, the modes diversified. The United States showed a distinct mode. The mode of China gradually resembles that of the United States. In China, the government and individual tourism spending is increasing.