Globalization and Tourism Openness as a Gateway to Economic Diversification in Algeria: An Analytical Applied Study for the Period 2005-2020

Abstract

Background: Globalization and tourism openness a promising field that can help Algeria diversify its economy beyond oil and gas. By showcasing its rich culture and beautiful landscapes, Algeria can attract more international visitors, boosting income and job creation. While there are challenges like security and infrastructure, focusing on eco-tourism and partnering with global tourism players offers great potential for economic growth and stability.

Objectives: The following study aims to underscore the imperative and significance of uplifting the tourism sector and its influence on the growth of tourism revenues in Algeria, particularly following the adoption of the Tourism Guidance Plan.

Methods: The study endeavors to gauge the impact of tourism openness on the upsurge in tourism revenues in Algeria by examining common integration for revealing long-term relationships and applying the Granger causality test to elucidate short-term relationships between the study variables.

Results: The study confirms the absence of both long-term and short-term relationships between the study variables, indicating the country's lag in keeping pace with global developments that could enhance opportunities to capitalize on the relative advantages of the tourism sector.

Conclusions: Despite Algeria's potential to achieve effective and sustainable tourism development and qualify it to open up to the world, the current challenges stand in the way of achieving this goal. Based on the collected data, the study has proven no relationship between tourism openness and economic diversification in Algeria.