American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 17, | October, 2023 P a g e | 70 www.americanjournal.org THE REALITY OF THE RELATIONSHIP BETWEEN TOURISM SPENDING AND THE AVERAGE PER CAPITA IN IRAQ FOR THE DURATION (2004-2020) (ANALYTICAL STUDY) Prof. Dr. Younes Boujelbene Tunisian Republic University of Sfax /Faculty of Economic Sciences and Management Department of Economics younes.boujelbene@gmail.com Esraa Saad Fahad The Republic of 1raq / Researcher Esraasaadfahad@gmail.com A B S T R A C T K E Y W O R D S The aims of study to introduce the importance of incoming tourism spending and its impact on the economies of the country concerned with receiving tourists and its impact on macroeconomic indicators, especially the average Iraqi per capita GDP, which developed according to the years of study 2004 to 2020 likely for the reasons of security and political instability, economic reasons and even health reasons such as the Corona pandemic, which harmed the world and Iraq, and the researchers adopted a descriptive analytical approach to study the reality of the relationship between tourism spending and the average Iraqi per capita GDP, which Reach the fluctuation of the results of the relationship due to the factors determining it. Tourism spending, average GDP per capita index, the relationship of tourism spending with the development of Iraqi per capita income. INTRODUCTION: The importance of the research comes from the importance of the relationship between tourism spending and the average per capita and according to the estimates of the country concerned, if it is receiving tourists, these are their spending as tourism revenues for this country and is recorded in the balance of payments as credit deals and vice versa tourism spending will be as payments borne by the country concerned and recorded in the balance of payments as debtor deals. The aim of study to pay attention to the index of average per capita GDP in Iraq, which is one of the important indicators of the driving force of economic growth and indication of the level reached by society of well-being and analysis of the relationship with international coastal spending, which is a critical expression of international tourism demand and with a statement of the most important factors determining this relationship American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 71 www.americanjournal.org Methodological: First: the problem of study It is determined that the average Iraqi per capita GDP is affected by incoming tourism spending, but fluctuating throughout the study period due to the instability of the political, economic and even health conditions that determine spending for international tourist demand. Second: Objective 1- Introducing tourism spending and its elements and importance to the countries receiving tourists. 2- Introducing the importance of the average GDP per capita index and its impact on the standard of living of citizens and the growth of the national economy. 3- Analyzing the reality of the relationship between tourism spending and the average Iraqi per capita for the years (2004-2020) and the most important determinants of the relationship. Third: the hypothesis The assumes of study that the average Iraqi per capita GDP was not directly positively affected by the change in the tourism market in Iraq, which determines the relationship between tourism spending and the development of the average Iraqi per capita in a swing manner. Fourth: The methodology followed: The researchers adopted the descriptive analytical approach in studying the research variables and achieving its objectives Fifth: the Structure The study included three basic sections: The first topic: tourism spending (concept, elements, effects and methods of measurement) The second topic: the average per capita and GDP in Iraq (concept and importance of development) The third topic: analysis of the reality of the relationship between tourism spending in the average Iraqi per capita. Sixth:Temporal and spatial boundaries of research: The time limits of the research during the period 2004-2020, as for the place of study, the State of Iraq The first topic Tourism spending (concept and importance - elements and methods of measurement) First: Concept: Tourism spending is defined as every expenditure made within the host country, i.e. (receiving tourists) by tourists themselves on various goods and services and means in exchange for the consumption of tourism services, whether it is spending from the citizens of the country or spending from foreign visitors, i.e. international tourists, meaning the greater the tourism consumption as a result of the increase in tourists, the number of nights and the economic level, the greater the tourist spending, or it is the spending made by tourists on various tourist and non-tourist goods and services during their stay in the host country, Every spend made within the host country is considered a tourist. It is a consumer tourism spending, and the spending carried out by investors in the tourism industry through the establishment and marketing of various tourism projects and products to achieve profits is American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 72 www.americanjournal.org investment tourism spending, which from this aspect represents an income obtained by different groups in society .It also clarifies its concept as the amount paid for the purchase of consumer goods and .1 services, as well as valuables (oil paintings, works of art, jewelry, ... etc) for personal use or gifting, or for the purposes of the tourist trip and during it, including spending by the tourists themselves as well as expenditures paid by others..2 Tourism expenditure includes, in particular, the following: A- Cash expenditure on consumer goods and services paid directly by the employer to workers when traveling for commercial purposes. B- Cash expenditure of tourists paid by a third party, whether they are business owners (businesses, governments and non-profit institutions serving households), other households or the social security program. C- Cash payments made by tourists for individual services supported by the government and non- profit institutions serving households in the fields of education, health, museums, performing arts and other services. D- Payments for services provided to workers and their families on tourist trips financed mainly by employers, such as subsidies for transportation, accommodation, stay in holiday housing for workers or other services. E- Supplementary amounts paid by tourists to attend sports or other cultural activities at the invitation of producers and paid mainly by producers (businesses, government, non-profit institutions serving households).3 Tourism spending does not include other types of payments that may be incurred by tourists and is not offset by the acquisition of goods and services, such as the payment of taxes, bank interest and purchases of financial and non-financial assets, and from Dawaya's point of view, tourism spending in any host tourist country is the total spending of foreign tourists during their stay in it..4 The positive development in the tourism movement will be offset by an increase in tourism spending on tourism goods and services, and this in turn will stimulate services related to tourism activity in one way or another, such as transportation, communications and communications. They are recorded on the side of the revenues of the host country and are considered credit deals, as for the country sending tourists, it is a payment borne by the country concerned and debit deals are recorded on the payment side in the balance of payments, as tourism spending is seen from the point of view of the state concerned with this expenditure If it is a reception for tourists, these people consider their spending as tourism revenues for this country and are recorded in the balance of payments as credit deals, and vice versa, tourism spending will be as payments borne by the country concerned and recorded in the balance of payments as debtor deals 5. Tourism spending has several direct and indirect effects that can be summarized as follows, as the promising effects are embodied in: 1 Hamid Abdul Nabi Al-Taie: An Introduction to Tourism, Travel and Aviation, Al-Warraq Publishing and Distribution Foundation, 2022, p. 129. 2- Douglas C. Frechtling ,The Tourism Satellite Account, A Primer Annals of Tourism Research, Vol.37, No. 1, p: 144. -3 Department of Economic and Social Affairs, International Recommendations on Tourism Statistics 2008, pp. 31-32. 4 Galila Hussein Hassanein Tourism and Hotel Economics, Faculty of Tourism and Hotels, Alexandria University, Arab Republic of Egypt 2006 5 Manal Mina Hanna Salman: Tourism spending and its impact on the most prominent macroeconomic variables - a case study in Jordan, Master’s thesis in Business Economics - Jordanian College of Graduate Studies, Amman, Jordan 2015, p. 28 American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 73 www.americanjournal.org • The impact of tourism spending on national income: The direct income is measured by the size of the revenues derived from the direct tourist spending of tourists in the visiting area or the visited country, and as such, what the tourist spends from the moment of arrival to the country that he aims to visit is calculated as direct inputs to that country. The tourism sector, like any other sector, is an integral part of the national economy, has its actual role in the formation of the national product and this role varies according to the size and importance of the tourism sector in the national economy and does not stop the role of tourism in the formation of national income only, but it sends a series in the national economy, which results in achieving more production and use, and thus achieves more income..6 • The impact of tourism spending on employment for tourism: The tourism spending ability and superior ability to generate jobs over the rest of the other economic activities and there are several reasons that explain this superior ability, which is the belonging of tourism to the third sector service sector if we consider that the first sector is the agricultural sector and the second sector industrial sector and that this has a significant impact embodied in the limited possibility of absorbing machines and equipment in place of the work element as tourism activity remains a service activity depends mainly on the element of work7. • The indirect impact of tourism spending is achieved through the multiplier effect The complex nature of tourism demand, and the extensions of this direct and indirect demand to most sectors of the national economy, have made the tourism sector a sector with dense background links with the rest of the economic sectors equipped for it, as investment and current tourism spending knocks on the doors of many agricultural and service industrial sectors such as the iron industry, cement, glass, furniture, furnishings, etc.; The sectors associated with tourism from behind, and that any development in the tourism sector will move its effects to the rest of the other economic sectors, negatively or positively, as the income resulting from tourism activity does not stop its effects at the borders of the tourism sector, but extends to the rest of the other economic sectors equipped for it, it has been scientifically proven that the tourism revenues achieved are spent several times and on various economic sectors, Each time, it gives a new increase to income until it leaks as a result of expenditures on imports, foreign investment, savings, and transfers that move money outside the scope of the national economic circle. The continuous chain of money transfers resulting from tourism activity constitutes what is known as the multiplier effect..8 Tourism spending is of great importance as it contributes to strengthening the economy and sustainable development of the receiving countries by promoting economic growth, creating jobs, promoting exports, improving the balance of payments, promoting local development and improving infrastructure. As well as diversifying the economy and reducing dependence on other sectors. Second: Elements of international tourism spending:9 The elements of tourist spending are that tourists in general have common aspects of spending, which are the expenses of accommodation, subsistence, transportation, food and petty cash, and tourists differ in each element of spending in terms of nationality, customs, traditions, spending behavior, price level and the goal of the trip, as the factors affecting the elements of tourist spending are different behavioral 6 Soria Masani and Amal Hafnawi: The impact of tourism spending on tourism revenues in a sample of North African countries: (Algeria, Tunisia, Morocco and Egypt) for the period 2005-2020) research published in the Arab Journal of Tourism, Hospitality and Archeology Sciences, Arab Foundation for Education, Science and Arts, Volume 3, Issue 5 p. 48 7 Al-Houri and Al-Dabbagh: The Economics of Travel and Tourism 2013, Al-Warraq Publishing and Distribution Foundation, pp. 140-142. 8 Al-Qaid and Saeed Al-Rawi: Principles of Tourism: Dar Ithraa for Publishing and Distribution, 1st edition, 2011, Amman, Jordan, p. 147. 9 Ghada Saleh Hassan: The Economics of Tourism: Dar Al-Wafa for the World of Printing and Publishing, 1st edition, 2008, pp. 148-149. American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 74 www.americanjournal.org patterns and different elements of tourist attractions and the different cost of international transport between countries and the financial ability of tourists and the different landmarks, ingredients and temptations Tourist International tourist spending in any host country includes all that foreign tourists spend in this country during one year, so the elements of tourism spending include accommodation expenses, food and drink, transportation, domestic trips, entertainment and entertainment, Purchases in addition to any other items of expenditure and do not include expenses for international travel to and from outside the country. While there is no dispute about the elements of tourism expenditure, there are different estimates of the relative importance of each of these elements and in a number of tourism studies estimates have been presented of the percentages occupied by each element of the tunnels among foreign tourists. These estimates vary from one host country to another, according to the purposes of the tourist trip to the country and from one category of foreign tourists within the same country to another and even from one tourist area to another within the same country for the same category of tourists. The purpose of the tourist trip is entertainment, culture or enjoyment of watching the environment... etc. undoubtedly affects the structure of the tunnels for foreign tourists, as those coming from abroad for the purpose of entertainment and entertainment will spend much more on this item than those who came for the purpose of culture or watching the environment. Those who are mainly environmentally motivated will spend more on domestic travels. As for those who come for conference tourism or scientific tourism, their percentage of spending on entertainment, entertainment, and internal transportation will decrease significantly, while their percentage of spending will increase compared to others on accommodation. As for foreign tourists who come to make purchases, their spending on this item will basically inflate...etc. As for the impact of the structure of tourism spending on categories of foreign tourists, there is no doubt... The spending pattern of a tourist, like any other person, is determined by his level of income and taste, which is originally determined by many psychological and social factors in his country. Naturally, a person, while on tourism to a foreign country, may change his spending pattern and spend more on some items and less on other items. Indeed, tourism in itself may mean departing from the usual or completely familiar, but nevertheless some of the original determinants of the people’s consumption pattern that they acquired in the country remain. Their homelands have an impact in general, so they cannot be abandoned, and this issue may not apply to a single tourist, but rather to the total number of foreign tourists coming from each foreign country. There is no doubt that American tourists have a spending pattern that differs from tourists coming from Europe, Australia, Japan, or other countries. Arab countries, and even for tourists coming from European countries, we find a huge discrepancy in the distribution of spending between Western Europe and Eastern Europe. The same goes for Arab tourists coming from oil and non-oil countries. Therefore, identifying the elements or structure of spending for each homogeneous group of tourist nationalities is an important matter and is also noted. The spending elements of a homogeneous group of tourists may differ from one tourist area to another within the country as long as there is diversity in tourism services or products. When a tourist goes to a tourist area for entertainment or amusement, the structure of his spending will differ from if he went to a tourist area full of antiquities or a natural tourist area. To view and enjoy the environment. Also, the structure of spending will differ according to gender and age within the homogeneous tourist category in one tourist area within any of the host countries due to many psychological considerations. Thus, the structure of tourism spending will not be uniform for all tourist groups within any country or for For all tourist areas in the country, it may also be subject to variation from one tourist season to American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 75 www.americanjournal.org another during the year. The structure of tourism spending will also differ between the different host countries, as the distribution of tourist spending is not uniform for all tourist countries due to the introduction of many different elements and variables that prevent uniformity. . Among these elements are the difference in tourist attractions and variables, means of entertainment and amusement, the difference in the type of tourism services at their different levels, and finally the difference in the cost of international transportation to tourist countries depending on the difference in distances and the diversity of means of transportation..10 Third: Methods of measuring international tourism spending: International tourism spending within a host country is a critical expression of its international tourism demand. International tourist demand within a country can be measured by the number of foreign tourists, the number of tourist nights spent in the country or the amount spent by these tourists during their stay. The methods of estimating tourism spending vary from one country to another depending on its own circumstances, and the most important of these methods is the banking method, which is intended to rely on the banking system to reach the estimate of tourism spending, and the second method is the statistical method, where tourism spending is estimated by this means directly through statistics and data issued by the tourism apparatus, and the third method is indirectly, as an approximate estimate of international tourism spending is reached, which can be reviewed as follows:.11 The first method: Limiting bank transfers to foreign tourists: This method is one of the most common ways to estimate international tourism spending within the host country. It is based on the registration of foreign exchange sales and purchases carried out by foreign tourists during the year through commercial banks or any other institutions authorized to do so. The second method: direct inquiries from foreign tourists. This method of estimating international tourism expenditures is called the direct method and depends on direct inquiries from foreign tourists about their spending on various items such as accommodation, food, drink, transportation, internal trips, amusement, and entertainment. Etc. during their stay in the host country and for many reasons it is not practical to collect data from all foreign tourists on the size and elements of their spending in addition to the places where the spending took place. The third method: Estimating indirectly. This method depends on first knowing the total number of tourist nights spent by foreigners in the host country, then estimating the average daily spending during a specific period of time (a year, for example). By multiplying the two together, an approximate estimate of international tourist spending during this period is reached. Period. The number of tourist nights can be replaced by the number of tourists multiplied by the average stay per tourist. Thus, international tourist spending is estimated according to the equation: Tourist spending, total tourists (x) average stay, average daily spending, tourist spending, number of tourist nights, average daily spending. The second topic: Average per capita GDP in Iraq (Concept, importance and development) The components and sources of a real economic renaissance are available in Iraq, due to its deep historical accumulation, enormous natural resources (either apparent or latent), and human and material resources, all of which are ingredients for building a diversified economic base. However, what Iraq has been exposed to during the past four decades of wars, economic sanctions, occupation, etc. It was 10 Ghada Saleh Hassan: The economics of tourism: a previously mentioned source, p. 149 11 Jalila Hussein Hassanein, Economics of Tourism and Hospitality, previously mentioned source American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 76 www.americanjournal.org followed by the destruction of all aspects of the economy. All of this deprived of a historical opportunity to advance and build a balanced economy, which resulted in a rentier economy in which oil is the main sector. The overall growth process is a function of this sector’s hard currency revenues, as this sector is characterized by capital intensity compared to a weak contribution. Other sectors result from the failure of most productive industrial projects due to poor planning and management, as well as the decline in local agricultural production of productive and consumer goods due to the lack of flexibility of the production system, in addition to the economic policies that during the past decades were the reason for not achieving economic growth because they were characterized by centralization, which lost efficiency. Competitiveness in production capabilities, while the public sector was the main engine of economic growth, while the private sector played a marginal role and did not have the opportunity to implement large investments, which was reflected in the backwardness of the production sectors and the failure to achieve the required growth..12 First: Iraq's GDP (concept, importance and development) The GDP is a mirror of economic activity in the country, and it is one of the most important and comprehensive measures to measure the level of economic performance of the country and determine the state of the economy if it is witnessing a state (contraction, expansion, recession or inflation), it is the most comprehensive indicator of total activity and includes all sectors of the economy, so it expresses the set of values of the final goods and services produced within the local economy by the elements of production located within the geographical periphery during a certain period of time, usually a year 13. It now expresses the extent of the state’s ability to exploit the material and human resources and energies in society and the high efficiency in using the available productive resources, as this indicator is one of the most important indicators expressing the level of the state’s economic performance. It is one of the indicators indicating the growth or weakness of the economy, as the development of the gross domestic product It affects the development of national income, and therefore the development of income leads to improving the level of social well-being of individuals14. Gross Domestic Product (GDP) is defined as “the sum of the gross added values achieved in the economic sectors within the geographical borders of the country with the contribution of national and non-national factors of production. That is, it represents the sum of the values of total production of goods and services after subtracting from it the value of intermediate consumption or production requirements. It is considered Gross domestic product is one of the most important indicators of economic development that is used in economic analysis, as it measures the efficiency of economic performance. Gross domestic product is one of the most used tools in depicting the nature of the economic performance of any economy and the development of the level of income, which expresses the level of economic well-being. The growth of economic activity was represented by the value and growth rate of the gross domestic product, which is one of the most important economic indicators that express the state of the country's economic activity, and it represents a measure of the performance of the economy. Table (15) shows 12 Ahmed Omar Al-Rawi, Studies in the Iraqi Economy after 2003, published by Dar Al-Doctor for Science, Ministry of Education and Scientific Research, Al-Mustansiriya Center for Arab and International Studies, 2009, p. 283. 13Muhannad bin Abdul Malik Salman, Ahmed bin Bakr Al-Bakr, a descriptive study (the concept of gross domestic product), Saudi Arabian Monetary Agency, Riyadh, 2016, p. 23. (14)Ministry of Planning, Department of Economic and Financial Policies, (Iraqi Economic Report for 2010), 2011, p. 4. American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 77 www.americanjournal.org the developments of the gross domestic product in terms of the monetary value and the growth rate for the period (2004- 2020). We note from the table that the growth rates of the GDP at current prices are volatile due to the economic, political and security conditions that Iraq is going through during the research period (2004- 2020), as the growth rate of the GDP increased from (38.12%) in (2005) to (40.88). %) in 2008, and the reason for this increase is due to Iraq’s exit from international economic sanctions, the increase in the value of oil production, the increase in oil prices to $88.8 per barrel in 2008, and the exploration of new oil fields that helped increase the gross domestic product. After that, the growth rate of the gross domestic product at current prices decreased (-16.80%) in the year (2009). The reason for the decline is due to the repercussions of the global financial crisis, which caused a decline in oil prices and thus its revenues declined. After this decline in growth, the gross domestic product continued to rise at growth rates. Increasingly, it reached 34.09% in 2011. This was a result of the rise in global oil prices as well as the improvement of the security situation, which had a positive impact on achieving a kind of recovery for the Iraqi economic sectors. After that, the gross domestic product continued to rise with low growth rates that decreased. The growth rate reached (-2.61%) in (2014) and (-26.92%) in (2015), and this is due to the entry of ISIS into Iraq and control of part of the governorates of Iraq in mid-2014, as well as the decline in global oil prices as a result of the surplus supply. of global oil, which was reflected in the deterioration of oil revenues. The previous government policies of not developing infrastructure and investing to increase production capacities with economic openness led to economic exposure, in addition to consumer spending policies and increased rates of oil imports. Local demand greatly harmed the economic and productive structure of Iraq, making it a consumer market abroad and weakening local employment capabilities, which led to exacerbation. The phenomenon of unemployment in Iraq. All of this contributed to the lack of development in economic growth rates and its remaining dependent on oil production to control the development of the gross domestic product, whether positive or negative. After the year (2015), the output at current prices witnessed a development until the growth rate reached about (1.15%) in the year (2016), due to the return of oil prices to rise relatively and gradually and the state’s adoption of an austerity policy, reducing spending and trying to activate other economic sectors in the Iraqi economy. This increase continued until 2018, when the highest value of the gross domestic product was achieved, reaching (268,918,874.0) and a growth rate of (21.31%). As for the slight decline that occurred in (2019), it was accompanied by a decline in oil prices at the end of the year (2019) and the occurrence of unrest. Popular and political issues disrupted part of the economic life in Iraq, and thus economic growth declined by (-2.23%) in 2019. This decline increased in 2020, which also witnessed a decline in the gross domestic product to reach (198,774,325.4) million dinars, with a negative growth rate of (-24.39%) (see Table 15). This is due to the decline in crude oil activity by (- 70.7%) as a result of the decline in prices. Crude oil by (63.8%), as well as due to the health crisis resulting from the outbreak of the Corona virus, which led to the economic crisis. It is noted that the main reason for the changes and growth in output is related to the oil sector, its value and prices, as is clear from the developments in the gross domestic product affected by the value of the oil sector. American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 78 www.americanjournal.org Table (1) Development of GDP at current prices for the period (2004-2020) GDP, current prices, million dinars 1 Growth rate of 2% year GDP, current prices, million dinars 3 Growth rate of 4% year 53235358.7 - 2004 273587529.2 7.61 2013 73533598.6 38.12 2005 266420384.5 -2.61 2014 95587954.8 29.99 2006 194680971.8 -26.92 2015 111455813 16.60 2007 196924141.7 1.15 2016 157026061.6 40.88 2008 221665709.5 12.56 2017 130642187.0 -16.80 2009 268918874.0 21.31 2018 162064565.5 24.05 2010 262917150.0 -2.23 2019 217327107.4 34.09 2011 198774325.4 -24.39 2020 254225490.7 16.97 2012 Source: Columns 1 and 3 are based on data from the Ministry of Planning, Central Bureau of Statistics and Information Technology, Directorate of National Accounts. Columns 2 and 4 are the work of the researcher. Figure (1) Evolution of the GDP growth rate at current prices Source: From the researcher’s work based on the data in Table (1) Second: Average per capita income in Iraq (concept, importance and development) This indicator is one of the important indicators to indicate the level of economic well-being of society. It represents the per capita share of the country’s annual output, that is, the amount of goods and services that the individual obtains during that year. It is a measure of sustainable development. However, it does not measure it completely, but it represents an important element of Elements of quality of life, meaning that achieving A continuous increase in the per capita share of GDP is a necessary, albeit insufficient, condition in enhancing the level of sustainable development. The average per capita share of GDP is one of the important indicators of the driving force of economic growth, and it is also one of the most prominent indicators. On the level of well-being reached by society, especially since it reflects the extent of GDP growth rate at constant prices % ــــــــــــ years data American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 79 www.americanjournal.org development of average per capita income and expresses the extent of development of per capita income. The goal of sustainable development is to provide a decent standard of living by raising income levels, since a low level of income has negative effects on employment and, as a final result, leads to an increase in unemployment rates. To track the development of the per capita index in Iraq, it is clear from Table (2) that the average per capita share of GDP increased in (2005) to (2629.6) million dinars compared to what it was in (2004) (1961.5) million dinars, with an annual growth rate of (34.05%). Hence, the average per capita share of GDP developed continuously during the period (2006-2013), as it rose from (3317.8) million dinars in the year (2006) to (7795.4) million dinars in the year (2013), and from that we see that the share The per capita output is high despite the circumstances the country has gone through. This is due to the achievement of economic growth rates, but it may not reflect a corresponding improvement in the individual’s standard of living in light of the deterioration of infrastructure and social services. In 2014, the average per capita share of output decreased. Gross Domestic Product: The average per capita share of GDP reached (7399.5) million dinars, with a negative growth rate of (-5.07%), due to the political crisis and the decrease in prices and quantities of exported oil. It is noted from the data in Table (16) that increases in the average per capita share of the GDP was fluctuating as a result of the instability of global oil prices, followed by an increase in the per capita share of the GDP to reach (5968.3) million dinars in the year (2017), achieving positive growth of (9.62%) compared to the year (2016) (5444.5), The period from (2019-2020) witnessed a decline in the average per capita share of GDP, reaching (4937.8) million dinars and a negative growth rate of (-26.51%) in (2020) compared to the year (2019) when it reached (6719.4) with a negative growth rate. About (-4.74%), and due to this decrease in the average per capita output is the decline in oil prices, which constitute the largest percentage in the composition of the gross domestic product, in addition to the state of economic contraction as a result of the impact of the Corona pandemic. The reasons for the fluctuation in the average per capita GDP at current prices during the study period are due to the decline in oil revenues and the deterioration of the country’s economic conditions as a result of the deteriorating security conditions represented by terrorist groups’ control over large areas of the country and the impact of this on the per capita economic and productive sectors of the domestic product. Table (2) Development of the average per capita GDP at current prices for the period (2004-2020) year Population in thousands (1 ) GDP, current prices, million dinars (2 ) Average per capita GDP at current prices, thousand dinars (3 ) growth rate % (4 ) Gross Domestic Product (million US dollars at current prices.) (5 ) Average per capita GDP (thousand US dollars at current prices) (6) ) Annual rate of change %(7) 2004 27139 53235358.7 1961.5 - 36627.90 1.31 / 2005 27963 73533598.6 2629.6 34.05 49954.89 1.74 32.39 2006 28810 95587954.8 3317.8 26.17 65140.15 2.25 29.46 2007 29682 111455813 3754.9 13.17 88837.06 3.10 37.54 2008 31895 157026061.6 4923.2 31.11 131614.43 4.50 45.33 2009 31664 130642187.0 4125.8 -16.19 111657.58 3.69 -18.16 2010 32490 162064565.5 4988.13 20.89 138516.72 4.43 20.18 2011 33338 217327107.4 6518.9 30.68 185749.66 5.74 29.49 2012 34208 254225490.7 7431.7 14.00 218002.48 6.44 12.21 2013 35096 273587529.2 7795.4 4.89 234637.68 6.61 2.72 2014 36005 266420384.5 7399.5 -5.07 228415.66 6.22 -6.00 2015 35213 194680971.8 5528.6 -25.28 166774.10 4.42 -28.94 2016 36169 196924141.7 5444.5 -1.52 166602.49 4.31 -2.53 2017 37140 221665709.5 5968.3 9.62 187217.66 4.73 9.76 2018 38124 268918874.0 7053.7 18.18 227367.47 5.60 18.54 2019 39128 262917150.0 6719.4 -4.74 233636.10 5.62 0.35 2020 40255 198774325.4 4937.8 -26.51 180924.09 4.25 -24.37 American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 80 www.americanjournal.org Source: - Column (1) Ministry of Planning, Central Bureau of Statistics and Information Technology, Annual Statistical Collection, Index Numbers, 2020. - Column (2) Ministry of Planning, Central Bureau of Statistics and Information Technology, National Accounts. - Column (3, 4, 6) is the work of the researcher. Based on the table data and based on the following formula using the Excel program. Annual rate of change = (comparison year - base year / base year) *100 - Average GDP per capita = GDP at current prices / population - Column 5 and 6, International Bank for Reconstruction and Development (https://data.albankaldawli.org/). Figure (2) Evolution of the average per capita growth rate Source: From the researcher’s work based on the data in table (16) The general average per capita GDP in Iraq during the aforementioned period is 9.87 thousand US dollars (at current prices). This average can be used to understand the general level of per capita income in Iraq during this period. It also shows the annual rate of change in the per capita GDP in Iraq. This indicator expresses the percentage change in the level of per capita income over the years. From 2004 to 2008, GDP per capita saw a strong increase, rising at an annual rate of between 29.46% and 45.33%. This is partly due to the overall increase in GDP in this period. In 2009, there was a sharp decline in GDP per capita by -18.16%. This may be a result of the economic challenges and turmoil that Iraq faced in that period. From 2010 to 2015, GDP per capita declined at an annual rate between -2.53% and - 28.94%. This can be partly explained by the economic and political challenges Iraq has experienced, including the impact of low oil prices. From 2016 to 2020, GDP per capita continued to decline at an annual rate between -24.37% and 9.76%. This decline shows the continuing economic challenges facing the country during that period. The table shows a relative rise in per capita GDP during the period from 2004 to 2013, increasing at an average annual rate of 9.87%. However, it is noted that declines were recorded from 2014 to 2020, with the annual rate decreasing by (-24.37%) Analysis of this table gives a general idea of the changes in the per capita GDP in Iraq during the specified period. However, there are other factors such as inflation, unemployment, and unequal distribution of income that may affect the general economic situation of the individual in Iraq. Years Average growth rate per capita ــ % ــــــــــ data American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 81 www.americanjournal.org The third topic: Analysis of the reality of the relationship between tourism spending and the average per capita income in Iraq (2004-2020) In order to analyze the reality of the relationship between tourism spending and the average per capita income in Iraq (2004-2020) We will rely on what is stated in Table (3) as follows: Table (3): Tourism spending and average per capita tourism spending (2004 - 2020) Source: (1) International Bank for Reconstruction and Development (https://data.albankaldawli.org/). (2) Worked by the researcher based on the table data and relying on the following formula using the Excel program. Annual rate of change = (comparison year - base year / base year) *100 (3) The average Iraqi per capita tourism expenditure was calculated by dividing the total tourism expenditure by inbound tour ism/the population in Iraq. It shows a decline in tourism spending in the period from 2004 to 2006, despite the fact that there was a significant increase in 2005 by (49.64%) in tourism spending, but it was followed by a decline in 2006 by (16.11%). These changes can be attributed to security conditions. The instability in Iraq after the American invasion in 2003 and the political and security unrest that affected most of the activities of the Iraqi economy, including tourism. From 2007 to 2013, tourism spending witnessed a continuous increase with an annual rate of change ranging between (12.18% and 104.61%). This is due to the improvement of the security conditions and relative stability in Iraq, and the government’s efforts to encourage investment in the tourism sector, the increase in tourism investments and the availability of more tourist facilities, as factors that contributed to this increase. Then there was slow growth and years Tourism spending (million US dollars at current prices) (1) Annual rate of change % (2) Average per capita tourism spending (US dollars) and current prices) (3) ) Annual rate of change % (4) 2004 419 / 15.04 / 2005 627 49.64 21.85 45.26 2006 526 -16.11 18.20 -16.71 2007 705 34.03 24.60 35.17 2008 813 15.32 27.82 13.12 2009 1221 50.18 40.31 44.88 2010 1675 37.18 53.57 32.90 2011 1879 12.18 58.03 8.32 2012 2363 25.76 69.78 20.24 2013 4835 104.61 136.27 95.29 2014 6115 26.47 166.41 22.12 2015 7934 29.75 210.13 26.27 2016 7647 -3.62 197.61 -5.96 2017 8093 5.83 204.26 3.37 2018 7855 -2.94 193.52 -5.26 2019 10925 39.08 262.85 35.83 2020 4172 -61.81 98.03 -62.70 Average / 21.60 105.78 18.26 American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 82 www.americanjournal.org fluctuations in the period from 2014 to 2018. In 2014, tourism spending witnessed an increase of (26.47%), but it slowed in the following years until 2018. The fluctuation in tourism spending in that period could be due to the security conditions that It is characterized by total instability, the presence of some scattered security challenges in some areas, and the impact of regional conflicts surrounding Iraq. Then in 2019 there was a significant increase (39.08%) in tourism spending, representing a recovery after the previous period of slowdown. This increase could be due to improved security conditions and progress in political stability in Iraq, in addition to the government’s efforts to enhance tourism investments and improve the business environment, recording a significant decline in tourism spending in 2020 by -61.81 percent due to the sudden economic turmoil caused by the Corona (Covid) pandemic. -19) This was explained in the previous paragraph. Both Figure (3) and Figure (4) show tourism spending in Iraq with rates of change for the period 2004-2020. My agencies: Source: From the work of the researcher based on data in Table (3) using the (Excel) program. Source: From the work of the researcher based on data in Table (3) using the (Excel) program. As shown in the table regarding the average per capita share of tourism spending (US dollars and current prices), it shows the average financial expenditure spent by each individual in Iraq on tourism spending in that year. There was a noticeable increase in the period from 2004 to 2013. In 2004, the average per capita tourism spending reached $15.04. Then this average increased at a positive annual rate of change to reach (136.27) dollars in 2013. One million dollars in 2013. The increase in the average per capita share is a positive factor that indicates an increase in tourism revenues earned by one person in Iraq, and then the value decreased significantly in the following years. To decrease in 2020 to (98.03) dollars, by 62.70%. Due to the impact of the Covid-19 pandemic on the tourism sector, these rates indicate that the average per capita share of tourism spending in Iraq has been greatly affected by changes in the tourism market and economic and political factors. As shown in Figure No. (5) and Figure No. (6) 419 627 526 705 813 1221 1675 1879 2363 4835 6115 7934 7647 8093 7855 10925 4172 0 2000 4000 6000 8000 10000 12000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020O n e m ill io n U S d o lla rs yaers Figure (3): Tourism spending in Iraq for the period (2004 - 2020) Tourism spendingــــــــــــــ 49.64 -16.11 34.03 15.32 50.18 37.18 12.18 25.76 104.61 26.47 29.75 -3.62 5.83 -2.94 39.08 -61.81 -100.00 -50.00 0.00 50.00 100.00 150.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % years Figure (4): Annual rate of change in tourism spending in Iraq for the period (2004 - 2020) Annual rate of change in tourism spendingـــــــ American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 83 www.americanjournal.org Source: Figures 5 and 6 of the researcher’s work based on the data in Table (3) using the Excel program. Conclusion : After studying the two research variables (tourist spending and the average per capita GDP in Iraq), we reached the importance of the relationship between the two variables because of their economic impact, first represented by the financial returns that are gained from incoming international tourism demand, and the increase or decrease in tourism spending within the country has a direct and indirect impact on The average Iraqi per capita share of GDP and its development, but the determinants of the relationship were primarily political, security, economic, health, and even environmental reasons that reflected their unpositive impact on the reality of the relationship. The relationship rates indicate that the average per capita share of tourism spending in Iraq has been affected in some way by changes in the tourism market, but the market is determined by a number of economic and political factors, which reduces the importance of the relationship. The researchers recommend the importance of paying attention to stimulating international tourism demand coming to Iraq, which has a significant financial impact in bringing foreign currency to Iraq and benefiting from it to finance tourism development projects, create job opportunities for citizens, and improve their standard of living by increasing their share of national income and gross domestic product in the future. 15.0421.85 18.2 24.6 27.8240.3153.5758.0369.78 136.27 166.41 210.13 197.61204.26 193.52 262.85 98.03 0 50 100 150 200 250 300 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 A m er ic an d o ll ar years Figure (5): Average per capita tourism spending in Iraq for the period (2004 - 2020) Average per capita tourism spending ـــــــــــ -80 -60 -40 -20 0 20 40 60 80 100 120 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % years Figure (6): The annual rate of change of the average per capita share of tourism spending and the annual rate of change of tourism spending in Iraq for the period (2004 - 2020) Annual rate of change in tourism spending Annual rate of change of average per capita tourism spendingــــــــــــ American Journal of Business Management, Economics and Banking Volume 17 Oct., 2023 P a g e | 84 www.americanjournal.org References 1. Hamid Abdul Nabi Al-Ta’i: An Introduction to Tourism, Travel and Aviation, Al-Warraq Publishing and Distribution Foundation, 1st edition, 2022, 2. Douglas C. Frechtling, The Tourism Satellite Account, A Primer Annals of Tourism Research, Vol.37, No. 1, p: 144. 3. Department of Economic and Social Affairs, International Recommendations Concerning Tourism Statistics 2008 4. Jalila Hussein Hassanein, Tourism and Hotel Economics, Faculty of Tourism and Hotels, Alexandria University, Egypt, 2006 5. Manal Mina Hanna Salman: Tourism spending and its impact on the most prominent macroeconomic variables - a case study in Jordan, Master’s thesis in Business Economics - Jordanian College of Graduate Studies, Amman, Jordan 2015 6. 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