Exploring the Tourism-Poverty Alleviation Nexus in the Brics Groupof Nations

• Published in: Ekonomika - Vilniaus universitetas Vol. 99; no. 1; pp. 93 - 109
• Main Authors: Garidzirai, Rufaro, Matiza, Tafadzwa
• Format: Journal Article
• Language: English
• Published: Vilnius University Press 11.06.2020
• Subjects: BRICS; emerging markets; panel-ARDL model; poverty alleviation; tourism
• ISSN: 1392-1258; 2424-6166; 2424-6166
• DOI: 10.15388/10.15388/Ekon.2020.1.6

The tourism-poverty alleviation nexus is becoming an increasingly significant subject of academic inquiry within the tourism economics discourse. Using time series data from the World Bank (1995–2017) in a P-ARDL model, the present study explores the relationship between tourism (receipts from exports, the travel subsector, hospitality and accommodation subsector) and poverty alleviation (final household consumption) with tourism arrivals as the control variable within the context of the BRICS group. The results suggest that receipts from the travel subsector and exports met the a priori expectation – positively influencing poverty alleviation within BRICS nations in the long run. Contrastingly, receipts from the hospitality and accommodation subsector did not meet the a priori expectation of a positive sign, with the results indicating statistical insignificance in the long run. However, receipts from the hospitality and accommodation were found to only influence poverty alleviation in the short run. Relatedly, the results suggest that increases in consumption associated with growth in tourism arrivals did not influence poverty in the BRICS. The results point to the heterogeneity of the influence of tourism on poverty alleviation, whereby certain dimensions of tourism contribute to poverty alleviation in the long run and others do so in the short run. Based on these findings it is recommended that BRICS countries harness their tourism potential and promote intra-BRICS tourism to maximise the positive impact of travel and tourism export receipts on household consumption, which catalyses poverty alleviation.