Sustainable Tourism and Economic Growth: The Role of Renewable Energy, Digital Connectivity, and Environmental Conservation Across Global Regions
Abstract
This study examines the relationships between economic growth, environmental sustainability, technological advancement, and tourism across global regions, focusing on patterns that affect sustainable development. Analyzing data from 2000 to 2023 through correlation, ANOVA, and regression models using jamovi, the study explores variables like foreign direct investment (FDI), renewable energy consumption, employment in services, and mobile phone subscriptions. The findings highlight regional disparities, with wealthier regions such as the European Union excelling in GDP per capita, FDI, and tourism, while developing regions like Sub-Saharan Africa and the Caribbean struggle with economic diversification and infrastructure. Sub-Saharan Africa shows higher renewable energy consumption due to limited access to non-renewable resources, while wealthier regions lag behind in renewable energy adoption despite their economic advantages. The study challenges the assumption that natural resource endowments automatically lead to sustainable practices, urging the need for targeted policies to promote renewable energy. It identifies FDI as crucial for tourism and economic growth, emphasizing its role in developing infrastructure. Employment in services is highlighted as a key predictor of GDP per capita, indicating the importance of service-oriented economies. The study also shows a bidirectional relationship between tourism and economic growth, with both driving and benefiting from each other. Innovatively, the study offers region-specific recommendations, supporting frameworks like the structural change hypothesis and the environmental Kuznets curve. It suggests tailored policies for each region to foster inclusive growth, reduce environmental degradation, and bridge regional inequalities, promoting long-term economic resilience.
References
Ahmad, M., Muslija, A., & Satrovic, E. (2021). Does economic prosperity lead to environmental sustainability in developing economies? Environmental Kuznets curve theory. Environmental Science and Pollution Research, 28(18), 22588-22601.
Akcigit, U., & Ates, S. T. (2021). Ten facts on declining business dynamism and lessons from endogenous growth theory. American Economic Journal: Macroeconomics, 13(1), 257-298.
Alcalá-Ordóñez, A., & Segarra, V. (2025). Tourism and economic development: A literature review to highlight main empirical findings. Tourism Economics, 31(1), 76-103. https://doi.org/10.1177/13548166231219638
Anwar, M. A., Zhang, Q., Asmi, F., Hussain, N., Plantinga, A., Zafar, M. W., & Sinha, A. (2022). Global perspectives on environmental Kuznets curve: A bibliometric review. Gondwana Research, 103, 135-145. https://doi.org/10.1016/j.gr.2021.11.010
Aschenbrand, E., & Michler, T. (2022). Exploring connections between tourism and forest conservation. In Wald in der Vielfalt möglicher Perspektiven: Von der Pluralität lebensweltlicher Bezüge und wissenschaftlicher Thematisierungen (pp. 257-277). Wiesbaden: Springer Fachmedien Wiesbaden.
Bamati, N., & Raoofi, A. (2020). Development level and the impact of technological factor on renewable energy production. Renewable Energy, 151, 946-955. https://doi.org/10.1016/j.renene.2019.11.098
De Siano, R., & Canale, R. R. (2022). Controversial effects of tourism on economic growth: A spatial analysis on Italian provincial data. Land Use Policy, 117, 106081. https://doi.org/10.1016/j.landusepol.2022.106081
Ekeocha, D. O., Ogbuabor, J. E., Orji, A., & Kalu, U. I. (2021). International tourism and economic growth in Africa: A post-global financial crisis analysis. Tourism Management Perspectives, 40, 100896. https://doi.org/10.1016/j.tmp.2021.100896
El Menyari, Y. (2021). Effect of tourism FDI and international tourism to the economic growth in Morocco: Evidence from ARDL bound testing approach. Journal of Policy Research in Tourism, Leisure and Events, 13(2), 222-242. https://doi.org/10.1080/19407963.2020.1771567
Enilov, M., & Wang, Y. (2022). Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests. Tourism Economics, 28(5), 1216-1239. https://doi.org/10.1177/1354816621990155
Fauzel, S. (2021). FDI and tourism futures: a dynamic investigation for a panel of small island economies. Journal of Tourism Futures, 7(1), 98-110. https://doi.org/10.1108/JTF-05-2018-0026
Ghosh, T., & Parab, P. M. (2021). Assessing India’s productivity trends and endogenous growth: New evidence from technology, human capital and foreign direct investment. Economic Modelling, 97, 182-195. https://doi.org/10.1016/j.econmod.2021.02.003
Hajam, A. G., Perween, S., & Malik, M. A. (2023). Re-visiting the causal relationship between tourism and economic growth in India: specific to general modelling approach. Journal of Hospitality and Tourism Insights, 7(1), 95-120. https://doi.org/10.1108/JHTI-09-2022-0459
Kurowska, E. E., Czerniak, A., & Bańkowski, J. (2023). The rationale for restoration of abandoned quarries in forests of the Ślęża Massif (Poland) in the context of sustainable tourism and forest environment protection. Forests, 14(7), 1386. https://doi.org/10.3390/f14071386
Leal, P. H., & Marques, A. C. (2022). The evolution of the environmental Kuznets curve hypothesis assessment: A literature review under a critical analysis perspective. Heliyon, 8(11).
León-Gómez, A., Ruiz-Palomo, D., Fernández-Gámez, M. A., & García-Revilla, M. R. (2021). Sustainable tourism development and economic growth: Bibliometric review and analysis. Sustainability, 13(4), 2270. https://doi.org/10.3390/su13042270
Mahmood, H., Furqan, M., Hassan, M. S., & Rej, S. (2023). The environmental Kuznets Curve (EKC) hypothesis in China: A review. Sustainability, 15(7), 6110. https://doi.org/10.3390/su15076110
Mihardja, E. J., Alisjahbana, S., Agustini, P. M., Sari, D. A. P., & Pardede, T. S. (2023). Forest wellness tourism destination branding for supporting disaster mitigation: A case of Batur UNESCO Global Geopark, Bali. International Journal of Geoheritage and Parks, 11(1), 169-181. https://doi.org/10.1016/j.ijgeop.2023.01.003
Mohammed, S., Gill, A. R., Ghosal, K., Al-Dalahmeh, M., Alsafadi, K., Szabó, S., ... & Harsanyi, E. (2024). Assessment of the environmental kuznets curve within EU-27: Steps toward environmental sustainability (1990–2019). Environmental Science and Ecotechnology, 18, 100312. https://doi.org/10.1016/j.ese.2023.100312
Munanura, I. E., & Kline, J. D. (2023). Residents’ support for tourism: The role of tourism impact attitudes, forest value orientations, and quality of life in Oregon, United States. Tourism Planning & Development, 20(4), 566-582. https://doi.org/10.1080/21568316.2021.2012713
Naseem, S. (2021). The role of tourism in economic growth: Empirical evidence from Saudi Arabia. Economies, 9(3), 117. https://doi.org/10.3390/economies9030117
Osinubi, T. T., Ajide, F. M., & Osinubi, O. B. (2022). Governance, FDI and tourism in top 10 tourist destinations in Africa. Transnational Corporations Review, 14(2), 140-152. https://doi.org/10.1080/19186444.2022.2040345
Pata, U. K. (2021). Tourism and economic growth in g10 countries: Evidence from an asymmetric panel causality test. Tourism: An International Interdisciplinary Journal, 69(1), 112-126. https://doi.org/10.37741/t.69.1.8
Pulido-Fernández, J. I., & Cárdenas-García, P. J. (2021). Analyzing the bidirectional relationship between tourism growth and economic development. Journal of Travel Research, 60(3), 583-602. https://doi.org/10.1177/0047287520922316
Raifu, I. A. (2024). Is the tourism-led-growth hypothesis valid in the presence of structural breaks? Evidence from DKW’s panel structural break method. Tourism: An International Interdisciplinary Journal, 72(2), 270-274.
Raihan, A., Pavel, M. I., Muhtasim, D. A., Farhana, S., Faruk, O., & Paul, A. (2023). The role of renewable energy use, technological innovation, and forest cover toward green development: Evidence from Indonesia. Innovation and Green Development, 2(1), 100035. https://doi.org/10.1016/j.igd.2023.100035
Rasool, H., Maqbool, S., & Tarique, M. (2021). The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis. Future Business Journal, 7(1), 1.
Sætren, G. B., Hogenboom, S., & Laumann, K. (2016). A study of a technological development process: Human factors—the forgotten factors?. Cognition, Technology & Work, 18, 595-611.
Sheng Yin, X., & Hussain, J. (2021). The implication of technological innovation and tourism development on FDI-growth-environment nexus in Association of Southeast Asian countries: a simultaneity modeling analysis. Energy Sources, Part B: Economics, Planning, and Policy, 16(9), 878-902. https://doi.org/10.1080/15567249.2021.1971801
Sokhanvar, A. (2022). The role of tourism and FDI in the economic growth of EU11 countries. Tourism and hospitality management, 28(2), 343-359. https://doi.org/10.20867/thm.28.2.5
Sokhanvar, A., & Jenkins, G. P. (2022). FDI, tourism, and accelerating the rate of economic growth in Spain. The Journal of International Trade & Economic Development, 31(4), 493-510. https://doi.org/10.1080/09638199.2021.1988135
Sokhanvar, A., & Jenkins, G. P. (2022). Impact of foreign direct investment and international tourism on long-run economic growth of Estonia. Journal of Economic Studies, 49(2), 364-378. https://doi.org/10.1108/JES-11-2020-0543
Sou, J. P. U., & Vinnicombe, T. (2023). Does governance quality matter for FDI-led tourism development? A supply-side perspective. Tourism Economics, 29(2), 392-408. https://doi.org/10.1177/1354816621105281
Vazquez Vicente, G., Martín Barroso, V., & Blanco Jimenez, F. J. (2021). Sustainable tourism, economic growth and employment—The case of the wine routes of Spain. Sustainability, 13(13), 7164. https://doi.org/10.3390/su13137164
Yangailo, T. (2025). The Challenges of Tourism Growth in Eastern and Southern African Countries. Journal of Tourism and Heritage Research, 8(1), 45-58.
Yuan, F., & Zhang, P. (2024). Are natural resources, sustainable growth and entrepreneurship matter endogenous growth theory? The strategic role of technical progress. Resources Policy, 96, 105189. https://doi.org/10.1016/j.resourpol.2024.105189
Zhang, J. (2021). Environmental Kuznets curve hypothesis on CO2 emissions: evidence for China. Journal of Risk and Financial Management, 14(3), 93. https://doi.org/10.3390/jrfm14030093
Zhang, J., Lyu, Y., Li, Y., & Geng, Y. (2022). Digital economy: An innovation driving factor for low-carbon development. Environmental Impact Assessment Review, 96, 106821. https://doi.org/10.1016/j.eiar.2022.106821
Zhang, L., Wu, C., & Hao, Y. (2022). Effect of the development level of facilities for forest tourism on tourists’ willingness to visit urban forest parks. Forests, 13(7), 1005. https://doi.org/10.3390/f13071005
Zhuang, Y., Yang, S., Razzaq, A., & Khan, Z. (2022). Environmental impact of infrastructure-led Chinese outward FDI, tourism development and technology innovation: a regional country analysis. Journal of Environmental Planning and Management, 66(2), 367-399. https://doi.org/10.1080/09640568.2021.1989672
This work is licensed under a Creative Commons Attribution 4.0 International License.
1.The works published in this magazine are subject to the following terms: Tourism Research Association (the publisher) preserves the patrimonial rights (copyright) of the published works, and favors and allows the reuse of them under the license of use indicated in point 2.
© Investur, 2017
2.The works are published in the electronic edition of the magazine under a Creative Commons Attribution-NonCommercial-NoDerivative 3.0 Spain (legal text) license. They can be copied, used, disseminated, transmitted and publicly displayed, provided that: i) the authorship and the original source of their publication (journal, editorial and URL of the work) are cited; ii) are not used for commercial purposes; iii) the existence and specifications of this license are mentioned.
3. Self-file conditions. Authors are allowed and encouraged to disseminate electronically the pre-print versions (version before being evaluated) and / or post-print (version evaluated and accepted for publication) of their works before publication, since it favors their circulation and earlier dissemination and with it a possible increase in its citation and scope among the academic community.
