2.1 International tourism – definition
According to Mathouraparsad & Maurin (2017) study, state that the
international and accredited definition of tourism by the United Nations is as
such, “Tourism is a social, cultural and
economic phenomenon which entails the movement of people to countries or places
outside their usual environment for personal or business/professional purposes.
These people are called visitors (who may be either tourists or excursionists;
residents or non-residents) and tourism has to do with their activities, some
of which imply tourism expenditure.”
section elaborates on the economic impacts (also known as the multiplier
effect) of the tourism sector. Indirect, direct and induced impacts are the
routes via which tourism can affect an economy (Vellas,2011).
2.3 The Economic impact of international
Basically, the description of
economic impact of tourism constitute the Indirect, direct and induced impacts
of tourism on local economies and are as follows:
Direct impacts: This is the gross
domestic product produced by the activities that are closely linked with the
tourism industry as highlighted by the OECD (Organization for Economic
Cooperation and Development) and WTO (World Tourism Organization). Examples
are: travel agents, hotels, airlines, restaurants, etc. (Vellas,2011).
Indirect Impact: This implies the results that accrue after
the direct impacts of tourism establishments, this is the impact derived from
tourists purchase or consumption of tourism activities or goods and services.
This comprises of ‘the tourism supply chain’. In other to fully utilize the
local establishments or domestic goods and services, there is need to promote
its consumption and at such results to an increase in GDP of an economy or
region (Mathouraparsad & Maurin, 2017).
Induced impact: This is beneficiaries
(households) enjoy the income generated from an activity of tourism that
positively impact another sector of an economy. This is also called ‘the
trickle-down effect’. That is, the constant expenditure of agents of tourism
who participated directly or indirectly from the original expenses of tourism
industry. (Mathouraparsad & Maurin, 2017).
Countries have different structure of their tourism
industry and how the tourist activity is link up to the local economy will
determine the extent of the routes of tourism impacts on the local economies (Vellas, 2011).
Tourism also has impacts on the environment. The
excess use of water in the tourism enterprises, the pressure on natural
resources like food, energy and raw materials and pollution such as solid
waste, wastewater and air pollution.
During the dry season in some regions, water is a
concerning issue as the quantity of water tourists use is the double of what
they use at their home (440 liters against 220 liters), at the same time the
total amount of water use at a golf course a year is equal to its consumption
by 60.000 rural villagers (UNEP,
to the UNEP (2011),
biodiversity like in over fishing, trekking, and the building of tourism
resorts causes the negative effect of tourism for example in the coast (coastal
wetlands or coral reefs), mountain areas, etc. Lastly the increase in the
number of tourists demanding to travel increases the air pollution through
carbon releases (Vellas,
Lastly the UNWTO (2011) report also states that tourism has impacts on
women. Showing that women were more employed in the tourism sector. Within
restaurants and hotels and in most less developed countries like in African
nations, Caribbean, Asian countries, Latin America etc. Their results also observed that women tend
to do clerical and cleaning work positions contrary to other far more
professional ranks in the sector.
2.4 The current global tourism landscape
Tourism is now one of the fastest
growing global economic sectors in terms of income generation and job creation.
Tourism is the third largest earner of export revenue, after the petroleum and
chemical sectors (UNWTO,
2016). The sector has experienced considerable diversification and
innovation over the years, further bolstering its strength and resilience (WTTC, 2017). Global
tourism substantially contributes to revenue generation, job creation,
investment, infrastructural development, and balance of trade; serving as a key
economic stabilizer and a catalyst for growth (World Economic Forum (WEF), 2017).
Travel and tourism has consistently grown during the
last six years, outperforming global economic growth (WTTC, 2017). In the year
2016, global travel and tourism generated a total of US$2.3 trillion and
created 109 million jobs. Thus, one in every ten global jobs occurs in the
tourism sector (WTTC ,2017). If the indirect and multiplier effects of tourism
are accounted for, then in 2016, the sector generated a total of US$7.6
trillion and created 292 million jobs WTTC (2017). Leisure travel contributed
to about 75% of global tourism output, while business travel accounted for
about 25% of income generated by tourism. Also, in 2016, tourism accounted for
6.6% of global export earnings, generating about S$1.4 trillion (WTTC ,2017).
2.5 Tourism development in Africa
planned and developed, tourism holds in store tremendous developmental
potential for the African Continent (World Bank, 2013). Tourism can catalyze economic growth, fuel
development, create jobs, alleviate poverty, boost investment, scale up
domestic consumption and equilibrate trade disparities (UNWTO, 2015). For over two decades, tourism in
Africa has progressively experienced significant growth. The number of visitors
to Africa has increased from 24 million between 1991 and 1998, to 48 million
between 2005 and 2008, reaching a record high of 56 million between 2011 and
2015 (UNCTAD, 2017).
been a dramatic increase in the continent’s tourism revenue for the preceding
two decades, from $14 billion between 1995 and 1998 to $41 billion between 2005
and 2008, and soaring up to $47 billion between 2011 and 2014. Also, tourism
contributed to the continent’s GDP by $69 billion between 1995 and 1998, to
$153 billion between 2005 and 2008; rising to $166 billion between 2011 and
2014 (UNCTAD, 2017). As to its share of
the continent’s GDP, tourism contributed 6.8 % to Africa’s GDP from 1995
to1998, 9.6% from 2005 to 2008 and 8.5 % from 2011 to 2014 (UNCTAD, 2017).
the UNWTO Casa Africa (2015), to maximize the benefits of a boom in global
tourism, African countries must come out with a strategic tourism development
and tourism delivery plan, which should be integrated into the overall
strategic economic development framework.
2.6 A brief review of tourism in Cameroon
usually presented as Africa in Miniature, due to the country’s extensive wealth
of natural and cultural resources (Cameroon Ministry of Tourism (MINTOUR),
2017). Endowed with more than 300 ethnic
groups and an extensive range of geographical features such as mountains,
equatorial forests and sweeping savannah, many tourists visit Cameroon to
experience these unique features; MINTOUR (2017).
Shortly after independence in 1960 according to Akamba &
Pu?ca?u (2009), the
government of Cameroon recognized the tourism potential of the country, in view
of development and economic growth. Also, from 1960 to 1982, Cameroon adopted a
five-year sequence of tourism development policy, where a tourism action plan
was devised for implementation during a five-year period and the government
initiated the construction of national parks and hotels in major cities and
towns such as Yaoundé, Douala, Kribi, Garoua and others resulting to the nation
having 7146 hotel rooms by 1980. Since then, the government has made considerable
efforts in developing tourism in Cameroon (Akamba, & Pu?ca?u,
According to WTTC (2017), in the year 2016, travel and
tourism directly contributed 68.2 billion F CFA (USD 2.5 billion) to the
Cameroonian economy, amounting to 3.7% of the country’s GDP in that year. If
the indirect and induced economic effects are taken into consideration, then
tourism contributed 8.1% to Cameroon’s GDP in 2016. With respect to employment,
in 2016, travel and tourism directly generated 289.500 jobs, which amounted to
3.1% of total employment.
2.7 Methodological framework of tourism
The economic contribution of travel and tourism
planning and development is provided below:
Adapted from WTTC report, 2017
the concept illustrated above, according to the WTTC (2017) report on the Travel &
Tourism Economic Impact in Central africa the direct impact of tourism to GDP
shows the ‘internal’ expenditure on travel and tourism by non residents, residents,
government direct spendings on tourists services. The over all contribution of
tourism to GDP, investment, employtment, export includes its direct, indirect
and induced impact.
2.8 Conceptual framework of tourism development
conceptual framework of tourism planning and development is provided below.
Source: Adopted from Ritchie and Crouch (2003).
In the concept illustrated above, a tourist
destination should commence by conducting an inventory of its tourism
resources, accompanied by tourism research. It should then craft a viable
tourism vision (Ritchie and
Crouch, 2003). The destination should move on to develop tourism,
through the provision of infrastructure, tourism facilities, tourism education
and the implementation of a tourism policy. Tourism marketing and management
should be conducted in a way that creates an attractive destination image. Leigh, et al (2013) contributes
that political, social and economic challenges can influence the number of
tourists going to a precise destination and for the number of tourists or
visitors to add in a region, there is need for ambitious, stable and favorable
Government interventions. But in 2005, Oh concluded a research on the contribution of economic growth
in Korea stating that policies set by the government to attract tourist to
develop the economy is not always effective. Rather, when an economy expands,
tourists are attracted and hence more visitors to the area yielding the
expected economic expansion.
2.9 Theories of tourism development and growth
One of the most popular theories of tourism
development and growth is the tourism destination lifecycle by Butler (1980). According to this theory, tourism
development is a process that is accomplished in stages. In this regard, a
tourist destination usually goes through six stages of development, comprising
the following: exploration, involvement, development, consolidation, stagnation
and decline or rejuvenation. This tourist destination life cycle theory is
diagrammatically illustrated as follows:
The R. Butler
model of tourist destination life cycle
adopted from Butler, 1980
the exploration stage, the destination is discovered by a small number of
explorers and adventurous travels, with very limited facilities available for
visitors. At the involvement stage, the destination starts providing limited
tourism facilities. At the development stage, significant tourism development
starts taking effect, characterized by the construction of a host of tourism
facilities and infrastructure. At the
development stage, the destination attains the pinnacle of tourism growth. At
the stagnation stage, the destination optimizes its carrying capacity; and the
rate of new visitors exploring the destinations becomes very low. From
stagnation, the destination may begin to decline, or it can modernize its
tourism concept to achieve rejuvenation (Butler, 1980).
most recent theory is the Actor Network. Originally presented by French
scholars as an attempt to comprehend all surrounding features that impacts and
influence processes of technological advancement and scientific
innovation-creation in the natural and social world (Cohen et al, 2012).
When applying Actor- Network toward the tourism sector according to Paget, et al (2010), it shows that the growth of a tourism company
lies on the implementations of recent or modern associations among non-human
entities and actors. Also, that in the destination of a tourist, resources
already existing can be recycled (reconfigured) to form innovative and unique
products that will safeguard the success of a company.
Empirical studies of tourism development
Kumar, et al (2015), using data from 1975- 2012 investigate the
nexus between tourism earnings and economic growth in Malaysia. They tested
cointegration, elasticity coefficients, and causation using the ARDL bounds and
Granger causality procedure. Their findings showed that in the short run, tourism has a marginal negative
effect but in the long run a positive and statistically positive effect. Their
causality relationship observed a bi-directional causation supporting that
tourism and investment has a long run effect on economic growth and can boost
Khalil, et al (2007), also conducted a study on Pakistan,
to establish the relationship between tourism and economic growth. The authors
made use of the standard Granger model to determine the direction of causation
between tourism growth and an increase in GDP. Their results revealed that an
increase in tourism receipts causes economic expansion, through increase in GDP
Saayman, (2012) examined
the South Africa’s African tourism market. The studied variables were first
tested using the Augmented
Dickey–Fuller test with an intercept between tourism and trade for Angola, Kenya, Malawi, Mozambique, Zambia,
Zimbabwe, Nigeria and South Africa (SA). All the variables were found to
contain a unit root except for trade between SA and Nigeria. The Johansen
cointegration test results show that for all the nations excepting Malawi,
there is evidence of cointegration (long-run relationship) among the variables.
The presence of cointegration led to the application of Granger causality test.
The causality test results showed a strong relationship between tourism and trade
in all these countries, except for Nigeria. In Malawi for example, it showed a
bidirectional causality whereby in the future tourism foresees trade and trade
foresees future tourism, four countries (Kenya, Malawi, Mozambique, and Zambia)
indicated that tourism foresees future trade and the other three countries
(Angola, Malawi, and Zimbabwe) indicated trade foresees future tourism. Their
study thereby confirms a strong relationship between African tourism to South
Africa and South African trade with other African countries, indicating a long
run link among “African tourism to and trade with South Africa”. They concluded
that tourism trade, contribute to SA standard of living and therefore leads to
& Grater, (2016) focused on investigating the relationships between the
tourism of African countries and inward foreign direct investment (FDI) in
tourism. The correlation between FDI capital investments and sum of projects,
with total tourism arrivals in the African nations. Their results indicated
that 2/3 of the African countries destinations have a very strong and positive
relationship between FDI and tourist arrivals. Countries most visited even
showed an almost horizontal relationship between investments and arrivals.
While examining FDI capital investment and the sum of projects with tourist
expenses also showed a positive and strong correlation for 2/3 of the same
countries, with high levels of investments and sum of projects but low level of
tourist’s expenses. Also, the link between tourism openness which they
described as “inbound plus outbound tourism expenditure” over GDP, and total
capital investment in countries respectively. The outcome indicated that “large
receivers of FDI with high earnings were not affected as smaller countries”.
Smaller countries such as Cameroon had a definite positive relationship between
tourism openness and capital investment. Having an important business opportunity
and policy implications.
Makochekanwa (2013) conducted an empirical study to determine
the degree to which tourism contributes to economic growth, export earnings,
employment, physical and human investment of countries in the South African
Development Community (SADC). The author employed panel data econometrics
approach, using a simple double log-linear
Cobb-Douglass production function. The study revealed that an increase in tourism receipts,
has a statistically positive effect on GDP, employment, physical and human
capital in SADC countries.
Šimundi? et al (2016) sought to establish the relationship
between international tourism expansion and economic growth in Latin American
and Caribbean countries (LAC). The authors employed panel data from 2000 to
2014. The results demonstrated that the relationship between tourism growth and
economic variables such as GDP and employment, is positive and has statistical
validity. Most especially, the authors found that if tourism grows by 1%, the
economy would grow by 0.06%.
statistical validity. Most especially, the authors found that if tourism grows
by 1%, the economy would grow by 0.06%.