Analyzing the Synergy between Budget, Tourist Influx and Accommodation Services of a Himalayan State: An Application of Co-integration Technique

One of the service sector industries with the quickest rate of growth in the globe right now is tourism.Because it is a major contributor to GDP and employment creation in many economies.The Himachal Pradesh state government has developed policies and various programs to establish the state as a top travel destination.The government has allocated funds to meet our financial needs in order to carry out these programs and policies at the local level.In the current study, secondary sources were used to gather the time series data from 2001 to 2022.The long-term relationship and short-term repairs made to the non-disruptable equilibrium route have been examined using the vector error correction model and the Johansen integration model.The study's conclusions demonstrated that there is a long-term co-integration between government spending on the tourism department and visitor arrivals.But the association between visitor arrival and accommodation growth has not been found in the study.The policy recommendation has also been suggested so that the tourism industry can fetch more visitors and can help the state economy.