Tourism and welfare in Sub-Saharan Africa: A theoretical analysis

Using the standard theoretical model of trade, we study the welfare effcects of tourism for developing countries with particular reference to Sub-Saharan Africa. We show that tourism can reduce welfare for trade regimes dominated by export taxes or import subsidies. In addition, we argue that tourist immiserisation is possible for Sub-Saharan Africa. Finally, we show that direct foreign investment in tourism is, for the most part, beneficial.