ABSTRACT
Tourism is one of the fastest growing sectors of many countries, stemming from increased demand for luxury goods. It has relatively low capital requirement, quick growth, rapid return to investment and sizeable demand for labour. For low income countries such as those in Africa, the sector can be a great source of economic development. Using a sample of nine East African countries, this chapter demonstrates that international tourism can be an engine of economic growth. The analysis is based on a dynamic supply-side approach, developed in export-led growth theories.
