Determinants of Employment in Travel and Tourism Industries in EU: A Panel Data Estimation
Determinants of Employment in Travel and Tourism Industries in EU: A Panel Data Estimation

Author(s): Darja Boršič, Lea Žižek
Subject(s): Tourism, Human Resources in Economy
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Domestic tourism spending; Foreign tourism spending; Capital investment in tourism activities; Fixed effects models; Random effects model
Summary/Abstract: This chapter presents tourism indicators and determinants of employment in tourism activities in the Member States of the European Union, analyzed for the period from 1995 to 2019. The analysis of countries’ travel and tourism contribution to gross domestic product and employment shows the development and causes of each EU members’ position in this field in the observed period. The countries that had both, the lowest average percentage of contribution to employment and GDP, during the analyzed period are Slovak Republic, Poland, Lithuania, Romania, Belgium, and Luxembourg. The group of countries that had the highest average contribution of tourism and tourism related industries to employment and GDP included Austria, Croatia, Greece, and Malta. The empirical analysis applied panel data techniques in order to estimate the determinants of employment in tourism industries, such as capital investment in tourism activities, and domestic and foreign tourism spending. Results confirm the positive effect of investment and domestic and foreign spending on employment in tourism industries as well as in tourism-related industries.

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