The relationship between tourism and employment: evidence from the Alps-Adriatic country

Abstract

Overlooking the importance of non-stationarity and normally distributed models in previous studies, this paper aims to fill the gap in literature based on time series between 2000 and 2019 for an Alps Adriatic country on tourism-led employment. Before implementing the Granger Causality Test, the vector autoregressive model is applied. The results confirmed that tourist arrivals significantly impact the hospitality labour market in Slovenia as employment in the lodging industry was driven in bi-causal directions to overall tourist arrivals. The demonstrated validity of substantial tourism-led employment has implications for job creation and economic growth, focusing on domestic tourists.