Tourism and Economic Growth in Uganda: Evidence from Time Series Analysis

Tourism has been thriving in Africa in the past few years and Uganda is investing in its development to boost economic performance. Purpose: This study aims to investigate the relationship between economic growth and tourism activities in the country. Methodology: For this purpose a time series analysis is made for the period between 1990 to 2023 years, and the results were interpreted to find the facts. Econometric techniques such as the Augmented Dickey-Fuller (ADF) test, Johansen co-integration, and Vector Error Correction Model (VECM) were used for this study. Findings: The results reveal a significant long-run relationship between international tourism receipts and Uganda’s GDP per capita. The findings underscore tourism’s role as a catalyst for economic growth and provide policy recommendations for sustainable growth in this sector.