MEASURING THE IMPACT OF TOURISM INDUSTRY ON REGIONAL ECONOMY OF SIKKIM STATE, INDIA (original) (raw)

JOURNAL OF INTERNATIONAL ACADEMIC RESEARCH FOR MULTIDISCIPLINARY Impact Factor 1.393, ISSN: 2320-5083, Volume 1, Issue 10, November 2013

The present study is a pioneer attempt to examine the impact of tourism on economic growth in Sikkim state. Tourism is one of the important services providing industry in Sikkim state. Its rapid growth contributed in the socio-economic development of the region. The increase of tourists’ influx resulted in the economic benefit to the regional economy by providing income and employment to the local community people. The growth of real GSDP percapita is used as a measure of economic growth. The statistical test shows that there is a positive correlation between Percapita GSDP and tourists’ influx. There is enormous increase in tourists’ inflows to Sikkim in last decade, which shows it growth in tourism. The Percapita GSDP is increasing significantly over a period of time along with the expansion of the tourism sector. It has increased from Rs. 17428 (1999-00) to Rs. 29506 (2008-09). Trade, tourism, hotels, transportation, and agriculture have been found as key drivers to GSDP. The estimated average annual growth of real GSDP percapita is 6.3 percent. This study shows that the tourists’ inflows have its positive impact on the regional economy. It shows the growth of tourism and its contribution to the economy.