AI Summary & Key Takeaways
AI InsightGenerally, the government should take serious actions in expanding the air transportation unit since it heavily contributes to the economy both directly and indirectly via the tourism sector.
📌 3 Key Takeaways
Abstract
Air transport and tourism are closely related, as air transport enables tourists to easily access destinations, thereby promoting tourism and economic growth. Air transport also facilitates the movement of people, goods and services, supporting economic development. The growth of the tourism industry leads to an increase in demand for air transport services, which in turn stimulates the growth of the aviation sector and creates jobs. In light of these known facts, this paper used the ARDL model with a 21-year time series data from 2000 to 2020 to study the contribution of air transport to the tourism sector and economic growth. The results revealed that there exists only a short-run relationship between air transport and economic growth, of which the number of passengers carried portrayed a significant positive contribution. On the other hand, the contribution of air transport to tourism showed both long- and short-run relationships, of which, in the long run, only the passengers carried increased the tourism receipts positively, while in the short run, registered carrier departures increased the tourism receipts and passengers carried decreased the tourism receipts. Generally, the government should take serious actions in expanding the air transportation unit since it heavily contributes to the economy both directly and indirectly via the tourism sector.