The impact of tourism development on social welfare in Africa: quantile regression analysis

The outbreak of the COVID-19 pandemic has severely affected the tourism sector which has resulted in unemployment, high rate of income inequality and poverty, and ultimately undermined social welfare improvement. Hence, to provide a better post-COVID-19 plan recovery, it’s important to promote tourism sector development which can promote inclusive growth by reducing gender inequality, income inequality and poverty. This study empirically examines the influences of tourism development on social welfare in 45 African countries during 1996–2020. The empirical evidence is based on quantile estimation techniques. The results reveal that tourism development (indicated by international tourism receipts and international tourist arrivals) appears to increase the human development index, meaning that tourism development can contribute to improving social welfare in the continent. Policy implications are discussed.

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