The Economics of Tourism and Sustainable Development

The Economics of Tourism and Sustainable Development

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Alessandro Lanza, Anil Markandya and Francesco Pigliaru

Although economics has increasingly become a technical subject, this accessible book aims to present important economics results and relate them explicitly to the policy debate. Using a coherent analytical framework, this unique approach offers prescriptions for moving tourism, and economic development more generally, closer to a sustainable ideal. The authors begin by studying the macroeconomic effect of tourism in terms of growth performance and sources of growth. They also examine how the tourism–growth link is affected by the role of imports in the economy, and how tourism impacts upon land use. Further chapters investigate the important issue of forecasting visitor numbers and explore the need for a comprehensive accounting framework to take account of ecologically sustainable tourism. The authors also examine the microeconomic aspects of sustainable tourism and analyse the increasing popularity of environmentally friendly holidays.

Chapter 6: The effect of climate change and extreme weather events on tourism

Andrea Bigano, Alessandra Goria and Jacqueline Hamilton

Subjects: development studies, tourism, economics and finance, environmental economics, environment, environmental economics, tourism, geography, tourism


6. The effect of climate change and extreme weather events on tourism Andrea Bigano, Alessandra Goria, Jacqueline Hamilton and Richard S.J. Tol 1. INTRODUCTION Decisions about whether to take a holiday and where to spend that holiday are by no means secondary ones. Such decisions are relevant for our wellbeing, but, more importantly, are economically relevant because billions of people in the world make analogous decisions every year, many of them more than once per year.1 This makes tourism an industry of primary importance for the world economy: it generates about 7.3 per cent of total worldwide exports.2 For some countries, tourism is the first source of income and foreign currency, and many local economies heavily depend on it. Among the factors taken into account by tourists when they decide upon their holidays, the destinations’ climate characteristics rank very high (Hu and Ritchie, 1993; Lohmann and Kaim, 1999). Hence tourists are sensitive to climate and to climate change (Maddison, 2001; Lise and Tol, 2002; Hamilton, 2003). Climate change will affect the relative attractiveness of destinations and hence the motive for international tourists to leave their country of origin. Yet, until recently, the attention devoted by the tourism literature to climate change and by the climate change literature to tourism has been quite limited. The degree of interest is now slowly increasing, and various aspects of the relationship between climate change and tourism are being covered. We review this literature in section 2. Five branches of literature have started...

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