Abstract:
The impact of visit Rwanda program has been researched because it is the program that expected by the government of Rwanda to take apart in development by increasing the revenues from tourism and showcasing the country’s beauty worldwide. This research investigates the impact of visit Rwanda program on GDP of Rwanda using time series data between 2018 and 2023.
The GDP model is designed and tested using Eviews10, the macroeconomic data were collected from Rwanda Development Board (RDB), National Institute of Statistics of Rwanda (NISR), and National Bank of Rwanda (BNR) analyzed using ARDL and ECM model to estimate long run and short run relationship. The results indicates that tourism revenues and tourism arrivals are a good predictor of GDP.
The coefficient of tourism revenues in relation to GDP is positive (+0.473892) which is statistically significant at 5% level in long run. This means that 1% increase in overall tourism revenue leads to 0.47% increase in GDP. The coefficient of tourism arrivals in relation to GDP is negative (-0.478772) which is statistically significant at 5% level. This means that 1% increase in overall tourism arrivals leads to 0.47% decrease in GDP in long run. The coefficient of FDI in relation to GDP is negative (-0.005517) which is not statistically significant at 5% level. This means that 1% increase in FDI leads to 0.005% decrease in GDP in long run.
In short run, the tourism arrivals and FDI will have a substantial impact on GDP than any other variable because they have a short-term positive relationship. The study suggests that the government of Rwanda within concerned boards like RDB should Continue and enhance the global marketing of Rwanda as a top tourism destination by leveraging existing brand partnerships (e.g., with Arsenal Football Club).
