The Impact of the Tourism Industry on Economic Growth in Afghanistan (2008 – 2020)

This study aims to explore the relationship between Afghanistan’s tourism industry and its economic growth. We utilized the ARDL model with structural breaks and time series data spanning from 2008 to 2020, the result reveals that both tourism expenditure and revenue significantly affect Afghanistan’s economic growth, in both long and short periods. Particularly, a unit rise in international tourism expenditure leads to a 0.692 unit increase in economic growth, meanwhile, a unit rise in global tourism revenue leads to a 0.125 unit increase in economic growth. These findings provide valuable insights for policymakers to enhance tourism development and allocate resources effectively. It also encourages domestic and foreign investment by showcasing tourism's economic potential. Additionally, local communities, particularly in areas like Bamyan and the Wakhan Corridor, can leverage opportunities in hospitality, handicrafts, and cultural tourism.