Determinants of tourism contribution to national economy

The aim of the paper is two-folded: firstly, theoretically to examine the determinants of tourism contribution, and then secondly, empirically to test the most profound factors that have influence on tourism development in Macedonia. Moreover, the study attempts to discover the relationship and the level of significance of several variables representing tourism contribution. For that purpose, the regression makes estimations by the OLS method, with a data set covering 1993-2012. The research findings reveal that some determinants exerted economically important influence on Macedonian economy, by showing elasticity. Particularly, the results show that foreign tourist arrivals is an influencing element, crucial for further tourism development, thus supporting the national economy.