Investigating the Tourism Situation in Iran from the Good Governance Perspective

Document Type : Research Paper

Authors

1 Associate Professor, Department of Economics, Allameh Tabataba’i University, Tehran, Iran.

2 Instructor, Department of Accounting, Islamic Azad University, Kalibar branch, Tabriz, Iran.

Abstract

Context and Purpose: The tourism industry is considered a main driver of economic growth, and good governance is required to ensure the security of property rights, contract enforcement, and collective action. The tourism industry, especially in Iran, due to its historical, cultural, and natural attractions, should be given more attention than in the past, and appropriate policies should be taken into account. Therefore, this research investigates the demand for tourism in Iran by considering the indicators related to good governance separately.
Design/methodology/approach: This research uses data from 1996 to 2020 and the Dynamic Least Squares (DOLS) method, in addition to economic growth and exchange rate, to examine the effect of good governance dimensions on Iran's tourism industry in six separate models.
Findings The findings show that among the six indicators of good governance, only two dimensions of governance, i.e., rule of law and government effectiveness, have a statistically significant and positive effect on the demand for tourism in Iran. Also, the findings indicate that the type of party that controls the government does not have a statistically significant effect on the demand for tourism, while an increase in economic growth and a decrease in the value of the national currency always increase the arrival of tourists.
Conclusion: Therefore, to strengthen the development of sustainable tourism, policymakers must apply and adhere to high-quality governance practices, as well as effective government policies, a stable political and economic environment, and a positive and stable image of the country.
Originality/value: In examining the impact of governance on the tourism industry, with a few exceptions, most of the empirical studies are dedicated to developed or developing countries without considering Iran and the impact of one or two determinants of governance on the tourism sector, at the level of country case studies or as a cross-sectional comparative analysis In addition to filling this research gap, the present study investigated the importance of governance quality in the development and motivation of tourism in Iran by using the six governance indicators provided by the World Bank.

Keywords

Main Subjects

References

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Journal of Tourism Planning and Development
Volume 14, Issue 52
April 2025
Pages 95-115

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