Estimating International Tourism Indicators in Context of Macroeconomic Stability and Fiscal Sustainability in the Republic of Serbia

Abstract

The importance of the tourism sector is manifested in the fact that this sector is one of the fastest-growing sectors worldwide. This re- search aims to determine the impact of tourism indicators on the macro- economic and fiscal framework. The subject of the paper includes estimating the effect of international tourism arrivals and international tourism receipts on economic growth, unemployment and fiscal sustainability in the Republic of Serbia for the period 2002-2020. The obtained empirical results show that international tourism categories significantly improve macroeconomic stability and fiscal sustainability in the Republic of Serbia for the observed period. Based on the empirical findings, policymakers should focus on increasing international tourist arrivals as well as increasing international tourism receipts to provide positive implications for the economic development of our country.