Estimating the Impact of Infrastructure Development on Tourism Development: A Study of Jammu and Kashmir State

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Muzffar Hussain Dar, Faizan Shabir, Parvaiz Ahmad Parray, Bharti Manhas


Tourism has passed food and vehicle products to become the world's third-largest export industry, after energy and chemicals. International tourism has exploded in popularity during the previous few years, accounting for 7% of global exports in 2016. Jammu and Kashmir state tourism generated Rupees 4362.68 lakhs in revenue for the state in 2010-11, according to the Jammu and Kashmir Economic Survey. For this purpose, the study examines the impact of infrastructure development on tourism development in Jammu and Kashmir State by using time series data from 2000 to 2019.It turns out that the results of a multivariate regression model show that the growth of tourism in the state is mostly driven by the construction of new infrastructure in the state. The economic benefits from state tourism. The graph between tourist inflows and employment shows that there is an increasing trend in employment in the state of Jammu and Kashmir. Further, the study supports that the tourism inflow shares a huge amount of revenue with the state, and tourism development also reduces regional inequalities due to the presence of strong spread effects. However, when the right infrastructure, policies, security, and awareness are provided for the state’s tourism, these economic benefits are possible, but only if these things happen.

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