Subject We consider total revenue from tourism in Jordan in recent years. The article addresses significant factors for management reaction. It examines the impact of the consumer price index and the number of tourists on total revenue from tourism activities in Jordan. Objectives We investigate factors affecting revenue from tourism in Jordan, for further managerial actions and forecasting the volume of revenue from tourism in this country. Methods The study employs statistical data of the World Bank and the International Monetary Fund. We use the autoregression model with distributed lags (ARDL), and perform necessary diagnostic tests in Eviews 9.? Results Study shows that high internal inflation rates reduce external demand for tourism services in Jordan, and thus significantly reduce revenues from tourism. We reveal negative impact of the consumer price index on revenues from tourism in Jordan, and expected positive impact of the number of tourists in the long term. Conclusions It is recommended to pay special attention to the development of measures to maintain moderate inflation, reduce the real exchange rate of the Jordanian dinar against the US dollar.
Keywords: tourism, revenue, time series, autoregressive distributed lag model
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