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Does Inbound Tourism Create Employment?

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Rethinking Management and Economics in the New 20’s

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

Tourism’s share in world employment is greater than that for motor-vehicles and chemicals industries combined, worldwide. Since tourism sector comprises many NACE sectors, it exerts non despicable indirect impacts on the rest of the economy. In addition, tourism offices around the world spend every year millions of euros in tourism campaigns to attract foreign tourists. For many economies, this source of income is vital for the equilibrium of their external balance accounts. Yet, one aspect that is not well studied is the influence of those foreign tourists on job creation on tourism related companies, in the host country, namely in the hospitality industry. Thus, this paper tests whether foreign outdoor tourists have contributed to job creation in Northern Portugal in 2006–2014. Based on data from 4 sources, it employs an OLS estimator to regress the employment changes on the number of new firms, turnover, share of foreigners in outdoor tourism activities, and labor productivity. Results indicate a negative but not statistically significant impact of foreign tourists on employment changes. Such results motivate further empirical investigation.

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Acknowledgements

This research was financed by National Funds of the FCT—Portuguese Foundation for Science and Technology within the project UIDB/04928/2020 and under the Scientific Employment Stimulus—Institutional Call CEECINST/00051/2018.

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Authors and Affiliations

  1. CARME – Centre of Applied Research in Management and Economics, Leiria, Portugal

    Eleonora Santos

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  1. Eleonora Santos
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Correspondence to Eleonora Santos .

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Editors and Affiliations

  1. CARME – Edifício C, School of Technology and Management, Polytechnic Institute of Leiria, Centre of Applied Research in Management and Economics, Leira, Portugal

    Eleonora Santos

  2. CARME – Edifício C, School of Technology and Management, Polytechnic Institute of Leiria, Leiria, Portugal

    Neuza Ribeiro

  3. CARME – Edifício C, School of Technology and Management, Polytechnic Institute of Leiria, Centre of Applied Research in Management and Economics, Leiria, Portugal

    Teresa Eugénio

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Santos, E. (2023). Does Inbound Tourism Create Employment?. In: Santos, E., Ribeiro, N., Eugénio, T. (eds) Rethinking Management and Economics in the New 20’s. Springer Proceedings in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-19-8485-3_22

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