In this globalized era, travel and tourism has become an indispensable
economic activity world over. It has the potential to strengthen the
socio-economic foundation of a nation. It has the capability to
disseminate the peace message across the globe. It is well-known for job
creation, foreign exchange earnings, revenue and income generations,
and developing socio-economic infrastructures. Thus, it is critical for
unemployment reduction, poverty alleviation, inequality reduction, and
bringing up balanced regional development. It is instrumental for
achieving inclusive and sustainable growth of a nation like India and
her States. It is with this backdrop, this paper is an attempt to assess
the role of tourism in Odisha, an eastern State of India, as an engine
of long-run economic growth. In recent years, tourism has grown
considerably due to the availability of good infrastructure facilities,
favorable government policies, improvement of existing tourist
locations, development of new tourist destinations and strong growth of
hotel and restaurant industry in the State. This is reflected in the
growing number of both domestic and foreign tourists to the State. In a
multivariate framework, the use of multiple regression model over the
period spanning from 1990-91 to 2011-12 provides the evidence of the
positive contribution of the tourism sector to the economic growth of
Odisha thereby justifying the role of tourism as an engine of long term
growth of the State. Hence, the government of Odisha should formulate
plans and policies such that tourism activities are promoted to lead a
stable and sustainable growth of the State.
This is one of very few studies which have investigated the role of
tourism as an engine of long-run growth by quantifying tourism sector in
terms of domestic tourist arrivals, foreign tourist arrivals and in
terms of tourists’ expenditure. This paper contributes to the literature
the evidence of tourism-led growth in the context of Odisha State of
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This study received no specific financial support.
The authors declare that they have no competing interests.
We sincerely acknowledge the valuable suggestions by Prof. B. B. Pradhan for the accomplishment of this paper.