Unpacking the Economic Impact of Tourism: a Multidimensional Approach To Sustainable Development

Abstract

While the literature has extensively explored the advantages and drawbacks of tourism, as well as attempts to establish connections between growth/development and tourism, comprehensive studies addressing the sustainable development impact of tourism remain scarce. Addressing this gap, our investigation focuses on understanding the association between tourism and the achievement of sustainable development goals. Using a panel dataset encompassing 160 economies from 1995 to 2019, we explore the link between two distinct measures of tourism (tourist arrivals as a fraction of total population and tourism revenue as a percentage of total exports) and various indicators of sustainable development, encompassing health, economy, education, social progress, and the environment. Our findings reveal a significant interaction between tourism and sustainable development, with the relationship notably differing between developed and developing economies, particularly in light of GDP per capita. Our research addresses a critical gap in existing literature by focusing on the sustainable development implications of tourism, an area where comprehensive studies remain scarce. By analyzing the complex relationship between tourism and sustainable development across diverse economies, our study provides valuable insights for policymakers and stakeholders seeking to navigate the challenges of balancing economic growth with environmental and social sustainability.