Abstract

In this study, the validity of the tourism-led growth hypothesis and economy based tourism growth models have been tried to be tested by taking into consideration the countries with the highest international tourism receipts and regions of the world. In order to reduce the problem of variable neglected during this process, relations of tourism and economic growth with financial development are also included. The study covers annual data for the period 1995-2016. The study places the countries and regions, USA, Australia, United Kingdom, China, Euro Zone, Japan, Thailand and Turkey. Panel data analysis with random effects was used in this study. As a result of the study, it is determined that international tourism revenues and economic growth are in mutual relation. The results show that the countries' international tourism receipts and their economic elders are in reciprocal relations, and this relationship supports the hypothesis of the economy-based tourism growth.