The relationship between the tourism sector and Local Economic Development (LED): the case of the Vaal Triangle Region, South Africa

Abstract

The aim of the study was to determine the relationship between tourism and Local Economic Development (LED). Tourism encourages economic growth by generating income and employment through business opportunities in both developed and developing regions. Tourism is considered an economic sector in itself, which could assist in diversification and revitalization of local economic regions. The geographical focus area of the research is the Vaal Triangle region located in southern Gauteng, South Africa. The study was conducted using a panel regression analysis. Secondary data were used from the Global Insight data base. Data obtained were further interpreted and analyzed and findings indicated that a positive relationship exists between the regional Gross Domestic Product (RGDP) and tourism development. The tourism sector and LED experience different challenges; however, if they work in a coordinated manner, this could contribute significantly to economic growth and development in any region.