Digital Infrastructure for Tourism and Hospitality Competitiveness in Africa

Abstract

Tourism and hospitality are among the growing sectors in Africa, contributing significantly to economies. However, the continent’s competitiveness in the global tourism market increasingly depends on its capacity to adopt and leverage digital infrastructure. This study examines the nexus between digital infrastructure and tourism competitiveness in 25 African countries for the period 2000-2023, using advanced panel econometric techniques. The tests confirmed a long-run equilibrium relationship between digital infrastructure and tourism performance. The Long-run parameters estimated through Fully Modified Ordinary Least Squares and Dynamic Ordinary Least Squares reveal a statistically significant positive effect of digital infrastructure on tourism competitiveness. Dynamic adjustments captured through a Pooled Mean Group estimator in a panel ARDL framework show that the speed of adjustment towards equilibrium is relatively fast, indicating that shocks to digital infrastructure have quick impacts on tourism outcomes. These findings underscore the strategic importance of digital transformation for Africa’s productive transformation agenda and provide evidence-based guidance for policymakers seeking to accelerate digital adoption in the tourism sector.