“…Tourism not only affects the national economy but also affects the local economy, the effects on the local economy can't be determined empirically because of the informal nature of the tourism sector. Tourism affects the economy in many ways, being a source of employment generation, social cohesion, cultural exchange, and it improves the global outlook of an economy thus attracting FDI, mutual cooperation among nations of different economic and social nature (Ghulam Muhmmad Qamri, Sheng, Khan, & Hanim, 2021). Furthermore, results depict variables affect each other in long run, meaning if investment in tourism sector is done today, its economic benefits will be observed because infrastructure development, hoteling industry take relatively longer time to develop, thus short-term elasticities are higher than long run elasticities.…”