We analyse whether tourism (measured by real tourism receipts) causes
growth in an asymmetric fashion in a panel of G-7 countries over the period of
1995–2014. Our results reveal that the tourism-led growth hypothesis holds for
France, Germany, and the US, with negative tourism shocks being more important
for Germany, Italy, Japan, while positive shocks are more important in UK and the
US. Our results imply that, policy makers in Germany, Italy and Japan should be
more concerned when tourism receipts decline.