Determinants of Employment in Travel and Tourism Industries in EU: A Panel Data Estimation
Darja Boršič - Faculty of Economics and Business, University of Maribor, Razlagova 14, 2000 Maribor, Slovenia
Lea Žižek - Faculty of Economics and Business, University of Maribor, Razlagova 14, 2000 Maribor, Slovenia
DOI: https://doi.org/10.31410/tmt.2021-2022.549
Darja Boršič - Faculty of Economics and Business, University of Maribor, Razlagova 14, 2000 Maribor, Slovenia
Lea Žižek - Faculty of Economics and Business, University of Maribor, Razlagova 14, 2000 Maribor, Slovenia
DOI: https://doi.org/10.31410/tmt.2021-2022.549
6th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2021/2022, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-49-3; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: This chapter presents tourism indicators and determinants of employment in tourism activities in the Member States of the European Union, analyzed for the period from 1995 to 2019. The analysis of countries’ travel and tourism contribution to gross domestic product and employment shows the development and causes of each EU members’ position in this field in the observed period. The countries that had both, the lowest average percentage of contribution to employment and GDP, during the analyzed period are Slovak Republic, Poland, Lithuania, Romania, Belgium, and Luxembourg. The group of countries that had the highest average contribution of tourism and tourism related industries to employment and GDP included Austria, Croatia, Greece, and Malta. The empirical analysis applied panel data techniques in order to estimate the determinants of employment in tourism industries, such as capital investment in tourism activities, and domestic and foreign tourism spending. Results confirm the positive effect of investment and domestic and foreign spending on employment in tourism industries as well as in tourism-related industries.
Keywords: Domestic tourism spending; Foreign tourism spending; Capital investment in tourism activities; Fixed effects models;
Random effects model
REFERENCES
Arellano, M. (1987). Computing Robust Standard Errors for With-In Groups Estimation. Oxford
Bulletin of Economics and Statistics, 49(4), 431-434.
Becerra, M. E. (2009). Turismo y trabajo: Una aproximacíon desde el mercado hotelero. Revista
de estudios regionales y mercado de trabajo, 5, 71-86.
Blake, A., Sinclair, T., Sugiyarto, G., & DeHaan, C. (2003). The Economic Impact of Tourism
in Malta. Report for the Malta Tourism Authority, The University of Nottingham, 1-42.
Brida, J. G., Matesanz Gómez, D., & Segarra, V. (2020). On the empirical relationship between
tourism and economic growth. Tourism Management, 81, 1-11.
Cárdenas-García, P. J., Sánchez-Riverp, M., & Pulido-Fernández, J. I. (2015). Does Tourism
Growth Influence Economic Development? Journal of Travel Research, 54(2), 206-221.
Currie, D. M., Skare, M., & Loncar, J. (2004). The Impact of War on Tourism: the Case of Croatia.
Conference on Tourism Economics, (str. 1-13). Palma de Mallorca.
De Santana Ribiero, L. C., Carneiro Rios Lopes, T. H., Goncalves Montenegro, R. L., & De
Lima Andrade, J. R. (2018). Employment dynamics in the Brazilian tourism sector (2006-
2015). Tourism Economics, 24(4), 418-433.
Eurostat. (2021). Dataset details: Employees, domestic concept - annual data. Retrieved July
27, 2021, from The Statistical Office of the European Union: https://ec.europa.eu/eurostat/
web/products-datasets/-/tipsna62.
Gómez López, C. S., & Barrón Arreola, K. S. (2019). Impacts of tourism and the generation of
employment in Mexico. Journal of Tourism Analysis, 26(2), 94-114.
Gujarati, D. N. (2015). Econometrics by Example. New York: Palgrave
Habibi, F., Rahmati, M., & Karimi, A. (2018). Contribution of tourism to economic growth in
Iran’s Provinces: GDM approach. Future Business Journal, 4(2), 261-271.
HCSO. (2006). Hungary 2005. Retrieved October 19, 2021, from Hungarian Central Statistical
Office: https://www.ksh.hu/pls/ksh/docs/hun/xftp/idoszaki/mo/hungary2005.pdf.
IHS. (2019). EViews 11, User’s Guide II. IHS Global Inc.
Ladking, A. (2011). Exploring tourism labor. Annals of Tourism Research, 38(3), 1135-1155.
Lee, J. W., & Brahmasrene, T. (2013). Investigating the influence of tourism on economic
growth and carbon emissions: Evidence from panel analysis of the European Union. Tourism
Management, 38, 69-76.
LuxTimes. (2012). Positive year for Luxembourg’s tourism sector. Retrieved August
30, 2021, from Luxembourg Times: https://www.luxtimes.lu/en/luxembourg/
culture-life-positive-year-for-luxembourg-s-tourism-sector-602d4fa4de135b92366beed8.
MET. (2004). Tourism in Hungary 2003. Retrieved October 19, 2021, from Ministry of Economy
and Transport: https://mtu.gov.hu/documents/prod/2003.pdf
Ministry of Economic Development and Technology. (2017). Strategija trajnostne rasti slovenskega
turizma 2017-2021. Retrieved October 8, 2021, from Slovenian Tourist Organization:
https://www.slovenia.info/uploads/dokumenti/kljuni_dokumenti/strategija_turizem_
koncno_9.10.2017.pdf.
OECD. (2016). OECD Tourism Trends and policies 2016. Retrieved October 18, 2021, from
Organization for Economic Co-operation and Development: https://www.oecd-ilibrary.
org/docserver/tour-2016-en.pdf?expires=1634654636&id=id&accname=gu
est&checksum=25AD1376D8270B53E115B424B486F6AE.
OECD. (2020). OECD Tourism Trends and Policies 2020: Latvia. Retrieved October 6, 2021,
from Organization for Economic Co-operation and Development: https://www.oecd-ilibrary.
org/sites/6eed417e-en/index.html?itemId=/content/component/6eed417e-en.
OECD. (2021). Gross domestic product (GDP). Retrieved July 12, 2021, from Organization for
Economic Co-operation and Development: https://data.oecd.org/gdp/gross-domestic-product-
gdp.htm.
Önder, K., & Durgun, A. (2008). Effects of Tourism Sector on the Employment in Turkey: An
Econometric Application. Paper presented at International Conference on Management
and Economics 2008, (str. 365-373).
Orsini, K., & Ostojić, V. (2018). Croatia’s Tourism Industry: Beyond the Sun and Sea. Retrieved
October 20, 2021, from European Commission: https://ec.europa.eu/info/sites/default/files/
economy-finance/eb036_en.pdf.
PAN. (2017). Country Report Cyprus. Retrieved October 19, 2021, from Prime Advisory Network:
https://www.primeadvisorynetwork.com/en/country-report-cyprus/.
Prasad, N., & Kulshrestha, M. (2016). Employment generation in tourism industry: An input-output
analysis. The Indian Journal of Labour Economics, 58, 563-575.
PwC. (2015). Measuring Tourism’s Impact: A Pilot Study in Cyprus. Retrieved October 22,
2021, from PricewaterhouseCoopers: https://skift.com/wp-content/uploads/2015/07/Measuring-
Tourisms-Impact-low-res-FINAL.pdf.
Semenovna Morozova, L., Nikolaevich Ananjev, A., Yurievich Morozov, V., Vladimirovna
Havanova, N., & Vladimirovna Litvinova, E. (2015). Influence of Tourism Industry Development
on the Regional Labour Market (on the Example of the Yaroslavl Region). Review
of European Studies, 7(3), 51-65.
Sharpley, R. (2001). Tourism in Cyprus: Challenges and Opportunities. Tourism Geographies,
3(1), 64-86.
Sokhanvar, A., Çiftçioğlu, S., & Javid, E. (2018). Another look at tourism-economic development
nexus. Tourism Management Perspectives, 26, 97-106.
Tang, C. F., & Tan, E. C. (2013). How stable is the tourism-led growth hypothesis in Malaysia?
Evidence from disaggregated tourism markets. Tourism Management, 37, 52-57.
Tapescu, A. I. (2015). Romanian versus Bulgarian Tourism Labour Market Analysis. Procedia
Economics and Finance, 27, 375-384.
UNTWO. (2021). Employment and decent work in tourism - ILO-UNWTO joint project.
Retrieved September 3, 2021, from United Nations World Tourism Organization: https://
www.unwto.org/project/employment-and-decent-work-tourism-ilo-unwto-joint-project.
UNWTO. (2010). International Recommendations for Tourism Statistics 2008. Retrieved October
11, 2021, from United Nations World Tourism Organization: https://www.e-unwto.org/
doi/10.18111/9789211615210.
WB. (2021a). TCdata360: Capital investment in Travel and Tourism. Retrieved June 22,
2021, from The World Bank: https://tcdata360.worldbank.org/indicators/cap.inv.
tat?country=BRA&indicator=24674&viz=line_chart&years=1995,2028.
WB. (2021b). GDP (constant 2010 US$). Retrieved July 9, 2021. from The World Bank: https://
data.worldbank.org/indicator/NY.GDP.MKTP.KD.
White, H. (1980). A Heteroskedasticity-Consistent Covariance Matrix and a Direct Test for Heteroskedasticity.
Econometrica, 48(4), 817-838.
Wooldridge, J. M. (2002). Econometric Analysis of Cross Section and Panel Data. Cambridge
(Mass.): The MIT Press.
WTTC. (2019). Travel & Tourism Economic Impact 2019: World. Retrieved August 23, 2021,
from World Travel & Tourism Council: https://www.slovenia.info/uploads/dokumenti/
raziskave/raziskave/world2019.pdf.
WTTC. (2020). EU 2020 Annual Research: Key Highlights. Retrieved October 11, 2021, from
Economic Impact Report: https://wttcweb.on.uat.co/Research/Economic-Impact.
WTTC and Oxford Economics. (2021). WTTC/Oxford Economics 2021 Travel & Tourism Economic
Impact Research Methodology. Retrieved October 26, 2021, from World Travel &
Tourism Council: https://wttc.org/Portals/0/Documents/Reports/2021/WTTC%20Methodology%
20Report%202021.pdf?ver=2021-06-03-165822-823.
Yap, G., & Saha, S. (2013). Do Political Instability, Terrorism, and Corruption Have Deterring
Effects on Tourism Development Even in the Presence of Unesco Heritage? A Cross-Country
Panel Estimate. Tourism Analysis, 18(5), 587-599.
Keywords: Domestic tourism spending; Foreign tourism spending; Capital investment in tourism activities; Fixed effects models;
Random effects model
REFERENCES
Arellano, M. (1987). Computing Robust Standard Errors for With-In Groups Estimation. Oxford
Bulletin of Economics and Statistics, 49(4), 431-434.
Becerra, M. E. (2009). Turismo y trabajo: Una aproximacíon desde el mercado hotelero. Revista
de estudios regionales y mercado de trabajo, 5, 71-86.
Blake, A., Sinclair, T., Sugiyarto, G., & DeHaan, C. (2003). The Economic Impact of Tourism
in Malta. Report for the Malta Tourism Authority, The University of Nottingham, 1-42.
Brida, J. G., Matesanz Gómez, D., & Segarra, V. (2020). On the empirical relationship between
tourism and economic growth. Tourism Management, 81, 1-11.
Cárdenas-García, P. J., Sánchez-Riverp, M., & Pulido-Fernández, J. I. (2015). Does Tourism
Growth Influence Economic Development? Journal of Travel Research, 54(2), 206-221.
Currie, D. M., Skare, M., & Loncar, J. (2004). The Impact of War on Tourism: the Case of Croatia.
Conference on Tourism Economics, (str. 1-13). Palma de Mallorca.
De Santana Ribiero, L. C., Carneiro Rios Lopes, T. H., Goncalves Montenegro, R. L., & De
Lima Andrade, J. R. (2018). Employment dynamics in the Brazilian tourism sector (2006-
2015). Tourism Economics, 24(4), 418-433.
Eurostat. (2021). Dataset details: Employees, domestic concept - annual data. Retrieved July
27, 2021, from The Statistical Office of the European Union: https://ec.europa.eu/eurostat/
web/products-datasets/-/tipsna62.
Gómez López, C. S., & Barrón Arreola, K. S. (2019). Impacts of tourism and the generation of
employment in Mexico. Journal of Tourism Analysis, 26(2), 94-114.
Gujarati, D. N. (2015). Econometrics by Example. New York: Palgrave
Habibi, F., Rahmati, M., & Karimi, A. (2018). Contribution of tourism to economic growth in
Iran’s Provinces: GDM approach. Future Business Journal, 4(2), 261-271.
HCSO. (2006). Hungary 2005. Retrieved October 19, 2021, from Hungarian Central Statistical
Office: https://www.ksh.hu/pls/ksh/docs/hun/xftp/idoszaki/mo/hungary2005.pdf.
IHS. (2019). EViews 11, User’s Guide II. IHS Global Inc.
Ladking, A. (2011). Exploring tourism labor. Annals of Tourism Research, 38(3), 1135-1155.
Lee, J. W., & Brahmasrene, T. (2013). Investigating the influence of tourism on economic
growth and carbon emissions: Evidence from panel analysis of the European Union. Tourism
Management, 38, 69-76.
LuxTimes. (2012). Positive year for Luxembourg’s tourism sector. Retrieved August
30, 2021, from Luxembourg Times: https://www.luxtimes.lu/en/luxembourg/
culture-life-positive-year-for-luxembourg-s-tourism-sector-602d4fa4de135b92366beed8.
MET. (2004). Tourism in Hungary 2003. Retrieved October 19, 2021, from Ministry of Economy
and Transport: https://mtu.gov.hu/documents/prod/2003.pdf
Ministry of Economic Development and Technology. (2017). Strategija trajnostne rasti slovenskega
turizma 2017-2021. Retrieved October 8, 2021, from Slovenian Tourist Organization:
https://www.slovenia.info/uploads/dokumenti/kljuni_dokumenti/strategija_turizem_
koncno_9.10.2017.pdf.
OECD. (2016). OECD Tourism Trends and policies 2016. Retrieved October 18, 2021, from
Organization for Economic Co-operation and Development: https://www.oecd-ilibrary.
org/docserver/tour-2016-en.pdf?expires=1634654636&id=id&accname=gu
est&checksum=25AD1376D8270B53E115B424B486F6AE.
OECD. (2020). OECD Tourism Trends and Policies 2020: Latvia. Retrieved October 6, 2021,
from Organization for Economic Co-operation and Development: https://www.oecd-ilibrary.
org/sites/6eed417e-en/index.html?itemId=/content/component/6eed417e-en.
OECD. (2021). Gross domestic product (GDP). Retrieved July 12, 2021, from Organization for
Economic Co-operation and Development: https://data.oecd.org/gdp/gross-domestic-product-
gdp.htm.
Önder, K., & Durgun, A. (2008). Effects of Tourism Sector on the Employment in Turkey: An
Econometric Application. Paper presented at International Conference on Management
and Economics 2008, (str. 365-373).
Orsini, K., & Ostojić, V. (2018). Croatia’s Tourism Industry: Beyond the Sun and Sea. Retrieved
October 20, 2021, from European Commission: https://ec.europa.eu/info/sites/default/files/
economy-finance/eb036_en.pdf.
PAN. (2017). Country Report Cyprus. Retrieved October 19, 2021, from Prime Advisory Network:
https://www.primeadvisorynetwork.com/en/country-report-cyprus/.
Prasad, N., & Kulshrestha, M. (2016). Employment generation in tourism industry: An input-output
analysis. The Indian Journal of Labour Economics, 58, 563-575.
PwC. (2015). Measuring Tourism’s Impact: A Pilot Study in Cyprus. Retrieved October 22,
2021, from PricewaterhouseCoopers: https://skift.com/wp-content/uploads/2015/07/Measuring-
Tourisms-Impact-low-res-FINAL.pdf.
Semenovna Morozova, L., Nikolaevich Ananjev, A., Yurievich Morozov, V., Vladimirovna
Havanova, N., & Vladimirovna Litvinova, E. (2015). Influence of Tourism Industry Development
on the Regional Labour Market (on the Example of the Yaroslavl Region). Review
of European Studies, 7(3), 51-65.
Sharpley, R. (2001). Tourism in Cyprus: Challenges and Opportunities. Tourism Geographies,
3(1), 64-86.
Sokhanvar, A., Çiftçioğlu, S., & Javid, E. (2018). Another look at tourism-economic development
nexus. Tourism Management Perspectives, 26, 97-106.
Tang, C. F., & Tan, E. C. (2013). How stable is the tourism-led growth hypothesis in Malaysia?
Evidence from disaggregated tourism markets. Tourism Management, 37, 52-57.
Tapescu, A. I. (2015). Romanian versus Bulgarian Tourism Labour Market Analysis. Procedia
Economics and Finance, 27, 375-384.
UNTWO. (2021). Employment and decent work in tourism - ILO-UNWTO joint project.
Retrieved September 3, 2021, from United Nations World Tourism Organization: https://
www.unwto.org/project/employment-and-decent-work-tourism-ilo-unwto-joint-project.
UNWTO. (2010). International Recommendations for Tourism Statistics 2008. Retrieved October
11, 2021, from United Nations World Tourism Organization: https://www.e-unwto.org/
doi/10.18111/9789211615210.
WB. (2021a). TCdata360: Capital investment in Travel and Tourism. Retrieved June 22,
2021, from The World Bank: https://tcdata360.worldbank.org/indicators/cap.inv.
tat?country=BRA&indicator=24674&viz=line_chart&years=1995,2028.
WB. (2021b). GDP (constant 2010 US$). Retrieved July 9, 2021. from The World Bank: https://
data.worldbank.org/indicator/NY.GDP.MKTP.KD.
White, H. (1980). A Heteroskedasticity-Consistent Covariance Matrix and a Direct Test for Heteroskedasticity.
Econometrica, 48(4), 817-838.
Wooldridge, J. M. (2002). Econometric Analysis of Cross Section and Panel Data. Cambridge
(Mass.): The MIT Press.
WTTC. (2019). Travel & Tourism Economic Impact 2019: World. Retrieved August 23, 2021,
from World Travel & Tourism Council: https://www.slovenia.info/uploads/dokumenti/
raziskave/raziskave/world2019.pdf.
WTTC. (2020). EU 2020 Annual Research: Key Highlights. Retrieved October 11, 2021, from
Economic Impact Report: https://wttcweb.on.uat.co/Research/Economic-Impact.
WTTC and Oxford Economics. (2021). WTTC/Oxford Economics 2021 Travel & Tourism Economic
Impact Research Methodology. Retrieved October 26, 2021, from World Travel &
Tourism Council: https://wttc.org/Portals/0/Documents/Reports/2021/WTTC%20Methodology%
20Report%202021.pdf?ver=2021-06-03-165822-823.
Yap, G., & Saha, S. (2013). Do Political Instability, Terrorism, and Corruption Have Deterring
Effects on Tourism Development Even in the Presence of Unesco Heritage? A Cross-Country
Panel Estimate. Tourism Analysis, 18(5), 587-599.
| tmt.2021-2022.549.pdf |
Association of Economists and Managers of the Balkans
- UdEkoM Balkan -
179 Ustanicka St, 11000 Belgrade, Republic of Serbia
E-mail: [email protected]
www.udekom.org.rs
- UdEkoM Balkan -
179 Ustanicka St, 11000 Belgrade, Republic of Serbia
E-mail: [email protected]
www.udekom.org.rs
Tel. +381 62 812 5779
VAT number: 108747027
Registration number.: 28157347
Registration number.: 28157347