The Place of Tourism Sector in the Turkish Republic of Northern Cyprus and its Impact on Economic Growth

Turkish Republic of Northern Cyprus (TRNC) is a non-recognized state, which is not other than mainland Turkey (TR). Therefore, it is not able to develop its economy and moving to a worse economic structure as time passes. On the other hand, South Greek Cypriot Administration (SGCA), which possesses the right of illegal "Republic of Cyprus" identity, still continues to carry on the embargoes and propaganda activities against Turkish Cypriots; even they use the aids provided by other countries or institutions under the name of "Republic of Cyprus", which all cause huge economic cliffs between two states. TRNC is not able to use the advantages of being a small island in the Mediterranean Sea in its tourism sector because of its political isolation, which makes the trend of tourism sector completely depended on TR as in the whole economy. The study tries to analyze the place and significance of tourism sector in TRNC through regression analyses. Both regression analyses and Granger's Causality Tests show that tourism sector loses power in the TRNC