۱٫ Introduction

۲٫ Theoretical framework

۳٫ Method

۴٫ Results and discussion

۵٫ Conclusion

Acknowledgements

References

Tourism is one of the largest industries in the world. Besides, it is also considered by many international organizations as having the broad impact in the group of the least developed countries. The article aims to analyze the economic effects of tourism on the group of the least developed countries and discuss the potential positive and negative effects of tourism. For our purpose of creating the groups of the similar least developed countries, we use the cluster analysis and analyze the countries according to the Economic Impact Research. As a result, we group the countries into a number of clusters based on the specific components.

Introduction

Tourism is often stated to be one of the most important socio-economic sectors of our time, considered as having the broad impact among the least developed countries and as a tool for the poverty alleviation. Indeed, tourism is considered as an effective vehicle of development and has long been recognized as a growth industry. However, the connection between tourism and development is still an important area of the research (Sharpley, Telfer, 2015). Internationally, Tourism creates one in eleven jobs directly or indirectly, accounts for as much as 10 % of the world’s gross domestic product and 6 % of the global exports are generated by international tourism (WTTC, 2015). The issue of the least developed countries (LDC) and their further development opportunities has long been a discussed topic at the international level. It is related to tourism, as it has been one of the sources of their potential economic growth and development. Tourism is already the first or second source of exports earnings for almost the half of the world’s forty-eight least developed countries and one half of all the those countries already consider tourism as one of the main drivers of their development (UNWTO, 2010) . The article aims to analyze the economic effects of tourism on the group of the least developed countries, introduce an overview of the pro-poor (PPT) tourism approaches by the international organizations and discuss the potential positive and negative effects of tourism. For our purpose of creating the groups of the similar least developed countries, we use multivariate statistical technique – cluster analysis. Based on the evaluation of the different methods in the different situations, we use Ward method in conjunction with the square of the Euclidean distance measure. In case of the non-identical measurement units we use standardization of variables. We analyze the countries according to the Economic Impact Research by the World Travel and Tourism Council and the Oxford Economics, based on the input-output model.