Abstract

This note explores the association existing between the relevance of tourism in an economy and the level of economic development attained. Using the Human Development Index (HDI) as a development measure and data on tourism's contribution to GDP and employment in Spanish regions in 2021, we analyze this relationship to determine its functional form. Our analysis suggests a Ushaped relationship, implying minimum thresholds to deviate from in order to foster a balanced and diversified economic activity mix in the region. It's important to note that the obtained results do not imply causation but rather underscore the observed association between the variables under scrutiny.