ECONOMIC AND ENVIRONMENTAL IMPACT ON TOURISM: EMPIRICAL EVIDENCE FROM PAKISTAN

Abstract

One of the largest and fastest-growing sectors of the global economy is tourism. This industry contributes significantly to national growth. This study explores the impact of environmental and economic factors on tourism in Pakistan from 1995 to 2020. Augmented Dickey-Fuller unit root tests were used to determine whether the variables under investigation were stationary. Data analysis was performed by using an OLS estimation procedure. The main finding of this study demonstrates that the economic variable has a positive and considerable impact on tourism, while the environmental variable has a negative but significant impact. This study suggests that the govt, as well as private sectors, should make the environment clean and ensure the safety of the tourists. The improved law-and-order situation will undoubtedly attract more tourists and improve Pakistan's status.