Impact of Tourism on Local Economic Sectors in Tungurahua Province, Ecuador

The objective of this article is to analyze the Impact of Tourism on Local Economic Sectors in Tungurahua Province, Ecuador. The hypothesis is: the tourism GVA is positively and significantly related to the GVA of other key economic sectors in the province of Tungurahua. Three specific hypotheses are addressed to examine the impact on priority sectors of the provincial economy. The research was quantitative, correlational and longitudinal. Provincial GVA data from the Central Bank of Ecuador from 2007 to 2020 were used. The Pearson coefficient and linear regression were used to determine the impacts on three econometric models, using the Stata 16.1 statistical package. Results: Positive and statistically significant correlations were observed between the tourism GVA with the wholesale and retail trade GVA, motor vehicle and motorcycle repair of .8162, with the transportation and storage GVA of .6881 and with the manufacturing of textile products such as clothing; manufacturing of leather and leather goods of .7370. In relation to the linear regression of the wholesale and retail trade GVA based on the tourism GVA, a coefficient of 1.94, p = .000 with R2 = 0.6662 was obtained. The linear regression of the transportation and storage GVA based on the tourism GVA obtained a coefficient of 1.05, p = .007 with R2 = 0.4735. The linear regression of the manufacturing of textile products GVA based on the tourism GVA obtained a coefficient of .9353, p = .003 with R2 = 0.5432. The results of this analysis highlight the need to merge tourism with other economic sectors. This supports the hypotheses formulated and shows a significant correlation between the Gross Added Value (GVA) of tourism and the GVA of the most relevant local economies, in relation to their contribution to the provincial GVA.