CONTRIBUTION OF TOURISM ON GDP IN NORTH MACEDONIA

Abstract

Tourism is very important for the success of many economies around the world. There are several benefits of tourism on host destinations.  Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens. The most important economic feature of activities related to the tourism sector is that they contribute to three high-priority goals of developing countries: the generation of income, employment, and foreign-exchange earnings. In this respect, the tourism sector can play an important role as a driving force of economic development. The impact this industry can have in the different stages of economic development depends on the specific characteristics of each country. Given the complexity of tourism consumption, its economic impact is felt widely in other production sectors, contributing in each case toward achieving the aims of accelerated development. Tourism is one of the sectors most affected by the Covid-19 pandemic, impacting economies, livelihoods, public services and opportunities on all continents. All parts of its vast value-chain have been affected. Export revenues from tourism could fall by $910 billion to $1.2 trillion in 2020. This will have a wider impact and could reduce global GDP by 1.5% to 2.8%. The purpose of this paper is to analyze the contribution of tourism to Republic of North Macedonia's GDP, comparing the period before the pandemic and during the Covid-19 pandemic. In 2019, contribution of travel and tourism to GDP (% of GDP) for North Macedonia was 7.4 %. Though North Macedonia contribution of travel and tourism to GDP (% of GDP) fluctuated substantially in recent years, it tended to increase through 2000 - 2019 period ending at 7.4 % in 2019.  But in 2020 the contribution of travel and tourism to GDP was 3.3%, a significant decrease comparing compared to 2019.