The Role of ICT in Tourism Industry on Economic Growth: Case study Iran

Abstract

This paper investigated the ICT effect on tourism industry in Iran economic growth over 1350-1390 period using co-integration and error correction methodology. As economic growth and ICT implication on society variables used in empirical analysis was integrated of one, employed Granger causality test. This study examines how the ICT and Internet gradually change the tourism industry structure in Iran; how important such changes are, and to where such changes will lead Iran’s tourism industry. So far, little research has been done to explore the ICT and Internet adoption status in the other country tourism industry and the impact of ICT on the structure of the industry. Iranian tourism makes an important and increasing contribution to economic growth and it represents one of the best opportunities to create income and employment for our country. In his paper, we illustrates how such trends apply to the tourism industry and describes the way ICT can support or enable such strategies. Then we analyses the role of ICT in tourism industry on Iran economic growth by introducing a framework to classify and analyze related organisations around three dimensions, distinguishing what happens (1) at the boundary of the firms, (2) in their relations with their customers and suppliers and (3) on the markets they reach. The results show that in the short-run, the Granger causality runs from e-tourism to economic growth In Iran. However, in the long run there is bi-directional Granger causality relationship for this country. In other words, if unidirectional causality runs from tourism to income, increasing in investment in e-tourism industry could lead to an increase in economic growth.

Keywords: E-Tourism, Economic Growth, Iran, Cointegration.