THE RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH IN JAPAN FROM 1990 – 2023
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Universiti Malaysia Sarawak (UNIMAS)
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This study investigates the long-term relationship between tourism and economic growth in Japan from 1990 to 2023. The main objective is to analyze the impact of tourist arrivals, tourism revenue, real effective exchange rate, and trade in goods and services on Gross Domestic Product (GDP). The Autoregressive Distributed Lag (ARDL) model is used to study a year’s worth of time series data in order to look at both short-term and long-term associations. The results show that tourist arrivals have a negative impact on economic growth in the short term, while tourism revenue has a positive impact in the long term. In addition, the real effective exchange rate and trade openness significantly and positively influence GDP. The ARDL cointegration test confirms a stable long-run relationship among the variables. This study can help in term of managing exchange rates and strengthen tourism infrastructure to ensure sustainable contributions of tourism to Japan’s economy. This study contributes to the understanding of the tourism–growth nexus and provides a solid foundation for future tourism policy formulation.