EXPLORING THE RELATIONSHIP BETWEEN TRAVEL AND TOURISM COMPETITIVENESS INDEX AND UAE TOURISM DEVELOPMENT: AN ARDL CO-INTEGRATION APPROACH

Abstract

The study investigates the relationship between the Travel and Tourism Competitiveness Index (TTCI) and UAE tourism development. Using the autoregressive distributed lag (ARDL) co-integration technique, the researchers analyze how tourism revenues relative to GDP depend on factors such as government spending on tourism, air transport infrastructure, and port infrastructure. The findings reveal a long-run equilibrium relationship, with positive effects from government spending and air transport infrastructure, but a negative impact from port infrastructure on tourism development. The study recommends continued investment in tourism infrastructure, particularly air transport, and emphasizes the importance of balancing spending and development between air and port transport for optimal tourism growth.