Is tourism conducive to green growth? An investigation of the role of tourism-based economic expansion in the nexus of leisure tourism and business tourism

Journal: Journal of Hospitality and Tourism Insights

Paper Link: https://doi.org/10.1108/JHTI-11-2023-0855

In an era where sustainability is a growing global concern, the question arises—can tourism truly support green growth? This thought-provoking research paper titled “Is Tourism Conducive to Green Growth? An Investigation of the Role of Tourism-Based Economic Expansion in the Nexus of Leisure Tourism and Business Tourism” by Amara Awan, Kashif Hussain, Dr. Mahwish Zafar, and Sami Ullah Bajwa delves deep into this issue. The study explores how different tourism motives—leisure tourism (LT) and business tourism (BT)—affect green growth, with a particular focus on tourism’s contribution to CO₂ intensity and sustainable economic expansion.

The rapid expansion of the global tourism sector has raised concerns about its environmental impact. The authors aim to investigate whether tourism-driven economies can promote green growth while addressing environmental challenges. Specifically, the study evaluates the direct and indirect effects of leisure and business tourism on green growth. It also introduces tourism-based economic expansion as a mediator and considers country risk and renewable energy as control variables. The authors employ an unbalanced panel dataset of 21 countries, comprising both OECD and non-OECD economies. This diverse sample allows the research to offer a comprehensive perspective on how tourism affects CO₂ intensity globally. Using multiple analytical tools, including regression analysis, propensity score matching (PSM), and mediation analysis (Baron and Kenny’s three-step regression, Sobel’s test, and Monte Carlo test), the study provides robust insights into the relationship between tourism and green growth.

The study’s findings reveal a nuanced relationship between different types of tourism and their environmental impact: Leisure tourism (LT) significantly increases CO₂ intensity, highlighting its negative impact on green growth. Popular tourist destinations tend to have a higher carbon footprint due to increased travel, consumption, and other tourism-related activities. In contrast, business tourism (BT) shows a more moderate environmental impact, presenting an opportunity to leverage this form of tourism for sustainable economic growth.

The propensity score matching (PSM) analysis confirms that countries with higher tourist traffic contribute more to CO₂ emissions than less-visited destinations. Importantly, the mediation analysis demonstrates that tourism-based economic expansion plays a critical role in amplifying the link between leisure tourism and CO₂ intensity. This research offers valuable insights for policymakers and stakeholders in the tourism industry. The results emphasize the need to mitigate the negative environmental impact of leisure tourism by adopting greener practices and promoting sustainable travel options. At the same time, business tourism can be harnessed as a potential driver for green growth through well-crafted strategies and investments in sustainable infrastructure.

This study stands out as the first to explore the distinct impacts of leisure and business tourism on green growth. It also introduces the concept of destination popularity and highlights the mediating role of tourism-based economic expansion in this relationship. The findings provide a fresh perspective on how tourism policies can be tailored to balance economic growth with environmental sustainability. As tourism continues to expand, addressing its environmental impact is crucial for ensuring long-term sustainable growth. This study offers a roadmap for balancing tourism development with green growth objectives. By focusing on sustainable policies and practices, governments and tourism stakeholders can turn these insights into action, creating a more sustainable future for the tourism industry.

Authors Detail:

1) Amara Awan,  Department of Management Sciences, Virtual University of Pakistan, Lahore, Pakistan

2) Kashif Hussain,  Asia Pacific University of Technology & Innovation, Kuala Lumpur, Malaysia

3) Mahwish Zafar, 4) Sami Ullah Bajwa, Faculty of Business and Management Sciences, The Superior University, Lahore, Pakistan