Impact of tourism on the economy of Ladakh region of the Jammu and Kashmir state of India

Abstract

This study provides an empirical analysis of the impact of tourism on the economy of Ladakh. Additionally, it analyses the different dimensions of tourism to find the main drivers of tourism impacting economic development in the region. The study is based on both primary and secondary data. The time series analysis covers a period of ten years from 2008-2009 to 2018-2019. The primary survey was conducted for descriptive study during the year 2019.Karl Pearson correlation analysis has been used to establish the relationship between the tourism indicators (TTA, ATE) and increasing business units and employment in these units. Similarly, to investigate the strength of relationship between tourism indicators and determinants of economic development of the region, linear multiple regression analysis was applied. It is found from the study that tourism has a positive impact on the economy and standard of living of local residents as it has increased business and employment opportunities in the region. The trend analyses have shown high growth rate in business and employment opportunities in hotels, restaurants, guesthouses, shops, commercial establishments and banking activities. The study found that average tourist expenditure has significant impact on all economic development variables. On the other hand, it has also been found that increase in number of tourists, itself does not contribute to the economy unless the tourists spend. newline