The influence of good governance on the tourism sector: The case of South Africa

Abstract

Over the last decades, the tourism sector has contributed to the national and regional economies in South Africa, while governance levels have regressed over time. The study’s objective was to investigate the impact of good governance on the success and growth of the tourism sector in South Africa, a proxy for developing countries. The hypothesis is that good and effective governance could positively impact tourism growth. A quantitative research methodology was used with econometric methods such as an Autoregressive Distributed Lag Error Correction (ARDL-ECM) process. The estimation indicated a long-run relationship between the variables. The tourism sector contributes significantly to the South African economy, and the government should note the importance of good governance, as indicated through this study, in the success and development of the sector. Given tourism's potential to achieve some of the Sustainable Development Goals and positively influence economic growth and development, relevant parties are urged to pursue good governance in the sector.