Regional economic diversification through tourism development

The case of Kazakhstan

Abstract

This study examines the potential of tourism development as a strategy for economic diversification in Kazakhstan’s regions, which have traditionally been heavily reliant on single industries like mineral extraction. The objective is to assess how domestic and international tourism contribute to economic growth in different regional economies. Using correlation analysis and an econometric approach, the study analyzes three different groups of regions, based on their level of economic growth: high, moderate and low over the period from 2003 to 2019. The findings indicate that while tourism’s impact on economic growth varies, domestic tourism in regions with moderate economic growth shows a positive contribution beyond traditional economic indicators. This suggests that tourism can play a significant role in diversifying regional economies, particularly in areas with existing moderate growth. We then develop a strategy for diversifying the region’s economy through the development of the tourism industry.