Tourism Development, Natural Resource Abundance, and Environmental Sustainability: Another Look at the Ten Most Visited Destinations.

Abstract

Tourism contributes approximately one-fifth to total global employment. However, growth in tourism can promote an increase in transportation, energy consumption, natural resource exploration, and consequential ecological distortions. This study applies a battery of second-generation econometric techniques to investigate the influence of tourism development and natural resource on a comprehensive environmental indicator; the ecological footprint (EF), in the ten most visited destinations. The findings show that tourism receipts have an increasing effect on EF, while tourism arrivals have a reducing effect on EF. The country-wise results reveal that tourism receipts increase the EF in China, Italy, Spain, and the UK, while the reverse holds true for France, Germany, Thailand, Turkey, Mexico, and the US. The influence of natural resource on the EF is mixed. Natural resource increases the EF in China, France, Germany, Spain, and the UK. A feedback causality exists among EF, natural resource, and tourism development. Policy directions are discussed.