Tourism and Its Economic Impacts on the Local Market in Babylon Province, Iraq

Purpose: This study examines the economic impacts of tourism on the local market in Babylon Province, Iraq, focusing on employment, household income, local inflation, economic leakage, and the distribution of tourism-related benefits.Design/methodology/approach: An exploratory-sequential mixed-methods design was employed.Quantitative data were obtained from 384 valid questionnaires, while qualitative data were collected through 18 in-depth, semi-structured interviews with managers, experts, business owners, and local stakeholders.Multiple regression analysis was used to examine the factors associated with local economic outcomes.Findings: Despite substantial tourist arrivals, much of the tourism-generated revenue leaves the provincial economy, resulting in a low local income multiplier.Tourism employment is predominantly seasonal and unstable, while tourism growth is associated with increases in land prices, rents, and essential goods, placing pressure on low-income households.Local value-chain strength and economic leakage emerged as stronger predictors of economic outcomes than tourist numbers.Weak linkages with local producers were identified as a major source of leakage.Women and young people were particularly active in home-based tourism businesses.Practical implications: Tourism policy should prioritize strengthening local supply chains, supporting local producers and small businesses, improving access to tourism-related employment, and promoting community-based development.These measures could help retain and circulate tourism revenue within the province.Originality/value: The study addresses the limited evidence on the local economic effects of transit and religious tourism in Iraq.It highlights the gap between tourist volume and locally retained economic benefits and provides a context-specific basis for more inclusive and locally embedded tourism development.