The Role of the Tourism Sector in National Economic Diversification: A Comparative Analytical Study Between Libya and Neighboring Countries (1998–2011)

Abstract

This study aims to analyze the role of the tourism sector in diversifying the Libyan national economy by comparing its performance with four neighboring countries (Tunisia, Egypt, Algeria, and Morocco) during the period (1998–2011). Libya faces the challenge of a mono-resource reliance on oil, which makes its economy vulnerable to fluctuations and hinders sustainable development. Despite Libya possessing rich and diverse tourism assets (natural, historical, and cultural), the performance of its tourism sector has remained marginal and weak, as evidenced by three main indicators: its negligible contribution to exports, a significant and growing tourism deficit, and an almost non-existent share of the international tourism market.
In contrast, neighboring countries (particularly Egypt, Morocco, and Tunisia) demonstrated strong and stable performance across the same indicators, succeeding in transforming tourism into a vital source of income and foreign currency and a cornerstone for economic diversification. The study indicates that the reasons for the weak tourism performance in Libya are attributed to: the mono-economic reliance on oil, the absence of specialized infrastructure and tourism services, security and political challenges, weak legislative and institutional frameworks, and the ineffectiveness of international marketing.
The study concludes by providing recommendations to activate the role of the tourism sector in Libya, including: adopting tourism as a strategic sector in development plans, developing infrastructure, improving the legislative environment, leveraging the unique location and heritage, enhancing regional and international marketing, and addressing the causes of the tourism deficit.