The Impact of Sectoral Growth on Algeria’s Tourism Performance

Abstract

This paper investigates whether sectoral growth (agriculture, manufacturing, service, infrastructure and public works) affects tourism performance (international tourism receipts) in Algeria during the period 1997-2019 before the outbreak of the COVID-19 pandemic. The study relied on the Cointegration test and the Error Correction Model and adopted the reverse causality from the growth-based tourism hypothesis. The findings showed that there are no relationships between sectoral growth in agriculture and manufacturing on the one hand and tourism performance on the other, and there is no effect of service sector growth on tourism performance. However, a low positive impact of the sectoral growth in infrastructure and public works on tourism performance was found. These results indicate that the reverse causality from the growth-based tourism hypothesis is not valid in Algeria. Therefore, Algerian authorities are required to intensify the interaction and integration between various sectors, with a special interest in the tourism industry.