The Economics of Tourism and Sustainable Development
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The Economics of Tourism 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.
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Chapter 7: Sustainable tourism and economic instruments: international experience and the case of Hvar, Croatia

Tim Taylor, Maja Fredotovic and Daria Povh


1 Tim Taylor, Maja Fredotovic, Daria Povh and Anil Markandya INTRODUCTION Tourism activities often have a significant environmental impact on a tourist destination, including congestion and pollution. These environmental concerns have led to moves towards the development of sustainable tourism in recent years, particularly as the numbers of tourists and the distances they are travelling has increased. Such developments have included the use of ecolabelling, for example, the use of ‘ecotourism’, and the taxing of tourists in order to raise the revenues to correct the environmental damage caused. This chapter examines the latter of these two measures, first from an international perspective and then from the local case of Hvar, Croatia. DEFINING SUSTAINABLE TOURISM There are a number of definitions of sustainable tourism. The distinctions arise due to differences in the definition of sustainability, and this obviously impacts on how certain sectors can be seen to be making progress towards sustainability. Sustainable tourism may be defined as ‘the optimal use of natural and cultural resources for national development on an equitable and self sustaining basis to provide a unique visitor experience and an improved quality of life through partnership among government, the private sector and communities’ (OECS website, undated). Others have considered sustaining tourist numbers to be the objective. Whatever the case, it is clear that tourism has important economic, social and environmental implications that should not be overlooked in evaluating the 197 198 The economics of tourism and sustainable development impacts of the tourist...

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