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

Abstract

Purpose

The gradual expansion of the tourism sector is raising concerns about whether tourism-based economies are conducive to supporting green growth. Hence, the current study aims to analyze the direct impact of tourism motives on green growth along with the indirect impact of tourism-based economic expansion while controlling for country risk and renewable energy.

Design/methodology/approach

An unbalanced panel data for a sample of 21 countries comprising OECD and non-OECD economies are employed for the analysis.

Findings

Regression results reveal that leisure tourism (LT) significantly and positively influences CO₂ intensity compared to business tourism (BT). Propensity score matching results show that the most traveled tourist destinations contribute more to CO₂ intensity than those less traveled. Mediation analysis by employing Baron and Kenny’s three-step regression, Sobel’s test and Monte Carlo test shows that tourism-based economic expansion significantly mediates between the nexus of LT and CO₂ intensity.

Practical implications

Results of the study provide useful practical implications for sustainable economy and green growth. It recommends to mitigate the challenges of LT, reducing the negative impact and to harness the potential of BT, enhancing the positive influence, through various policies and practices.

Originality/value

This study is the first to examine the impact of LT and BT on green growth, to explore the role of destination popularity and the mediating role of tourism-based economic expansion in this relationship.

Citation

Awan, A., Hussain, K., Zafar, M. and Bajwa, S.U. (2024), "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 of Hospitality and Tourism Insights, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JHTI-11-2023-0855