IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i15p7074-d1717454.html
   My bibliography  Save this article

The Impact of Technology, Economic Development, Environmental Quality, Safety, and Exchange Rate on the Tourism Performance in European Countries

Author

Listed:
  • Zeki Keşanlı

    (Department of Business, Girne American University, 99320 Kyrenia, North Cyprus, Turkey)

  • Feriha Dikmen Deliceırmak

    (Department of Business, Girne American University, 99320 Kyrenia, North Cyprus, Turkey)

  • Mehdi Seraj

    (Department of Economics, Near East University, 99138 Nicosia, North Cyprus, Turkey)

Abstract

The study investigates the contribution of technology (TECH), quantified by Internet penetration, in influencing tourism performance (TP) among the top ten touristic nations in Europe: France, Spain, Italy, Turkey, the United Kingdom, Germany, Greece, Austria, Portugal, and the Netherlands. Using panel data from 2000–2022, the study includes additional structural controls like environment quality, gross domestic production (GDP) per capita, exchange rate (ER), and safety index (SI). The Method of Moments Quantile Regression (MMQR) is employed to capture heterogeneous effects at different levels of TP, and Driscoll–Kraay standard error (DKSE) correction is employed to make the analysis robust against autocorrelation as well as cross-sectional dependence. Spectral–Granger causality tests are also conducted to check short- and long-run dynamics in the relationships. Empirical results are that TECH and SI are important in TP at all quantiles, but with stronger effects for lower-performing countries. Environmental quality (EQ) and GDP per capita (GDPPC) exert increasing impacts at upper quantiles, suggesting their importance in sustaining high-level tourism economies. ER effects are limited and primarily short-term. The findings highlight the need for integrated digital, environmental, and economic policies to achieve sustainable tourism development. The paper contributes to tourism research by providing a comprehensive, frequency-sensitive, and distributional analysis of macroeconomic determinants of tourism in highly developed European tourist destinations.

Suggested Citation

  • Zeki Keşanlı & Feriha Dikmen Deliceırmak & Mehdi Seraj, 2025. "The Impact of Technology, Economic Development, Environmental Quality, Safety, and Exchange Rate on the Tourism Performance in European Countries," Sustainability, MDPI, vol. 17(15), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:7074-:d:1717454
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/15/7074/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/15/7074/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joakim Westerlund, 2008. "Panel cointegration tests of the Fisher effect," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(2), pages 193-233.
    2. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    3. Craig Standing & Jean‐pierre Tang‐taye & Michel Boyer, 2014. "The Impact of the Internet in Travel and Tourism: A Research Review 2001–2010," Post-Print hal-01243414, HAL.
    4. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    5. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    6. Eric Neumayer, 2004. "The Impact of Political Violence on Tourism," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(2), pages 259-281, April.
    7. María Santana-Gallego & Francisco J. Ledesma-Rodríguez & Jorge V. Pérez-Rodríguez, 2007. "On the impact of exchange rate regimes on tourism," Working Papers 07-07, Asociación Española de Economía y Finanzas Internacionales.
    8. Nizar, Muhammad Afdi, 2012. "Pengaruh Jumlah Turis Dan Devisa Pariwisata Terhadap Nilai Tukar Rupiah [The Effect Of Tourism On Rupiah Exchange Rates]," MPRA Paper 65629, University Library of Munich, Germany.
    9. Breitung, Jorg & Candelon, Bertrand, 2006. "Testing for short- and long-run causality: A frequency-domain approach," Journal of Econometrics, Elsevier, vol. 132(2), pages 363-378, June.
    10. Ko Koens & Albert Postma & Bernadett Papp, 2018. "Is Overtourism Overused? Understanding the Impact of Tourism in a City Context," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    11. Youssef El Archi & Brahim Benbba & Zhulduz Nizamatdinova & Yerlan Issakov & Gálicz Ivett Vargáné & Lóránt Dénes Dávid, 2023. "Systematic Literature Review Analysing Smart Tourism Destinations in Context of Sustainable Development: Current Applications and Future Directions," Sustainability, MDPI, vol. 15(6), pages 1-14, March.
    12. Hüseyin Tastan, 2015. "Testing for spectral Granger causality," Stata Journal, StataCorp LLC, vol. 15(4), pages 1157-1166, December.
    13. Lee, Chien-Chiang & Chien, Mei-Se, 2008. "Structural breaks, tourism development, and economic growth: Evidence from Taiwan," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 77(4), pages 358-368.
    14. Mariani, Marcello M. & Di Felice, Marco & Mura, Matteo, 2016. "Facebook as a destination marketing tool: Evidence from Italian regional Destination Management Organizations," Tourism Management, Elsevier, vol. 54(C), pages 321-343.
    15. Suharyono Suharyono & Kumba Digdowiseiso, 2021. "The Effects of Environmental Quality on Indonesia s Inbound Tourism," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 9-14.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Linyue Li & Yikai Wang, 2025. "The Impact of Coordinated Two-Way FDI Development on Carbon Emissions in Belt and Road Countries: An Empirical Analysis Based on the STIRPAT Model and GMM Estimation," Sustainability, MDPI, vol. 17(19), pages 1-25, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sun, Chuanwang & Khan, Anwar & Liu, Yongzhe & Lei, Ni, 2022. "An analysis of the impact of fiscal and monetary policy fluctuations on the disaggregated level renewable energy generation in the G7 countries," Renewable Energy, Elsevier, vol. 189(C), pages 1154-1165.
    2. Diby Francois Kassi & Yao Li & Thierry Yobouet Gnangoin & Siele Jean Tuo & Franck Edouard Gnahe & Ruqia Shaikh & Dang Yongjie, 2024. "Green credits, green securities, renewable energy, and environmental quality: a comparative analysis of sustainable development across Chinese provinces," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 1-37, October.
    3. Wen Jun & Junaid Waheed & Hadi Hussain & Ihsan Jamil & Denisa Borbášová & Muhammad Khalid Anser, 2020. "Working women and per capita household consumption expenditures; an untouched reality," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 35-69.
    4. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    5. Bin Amin, Sakib & Taghizadeh-Hesary, Farhad & Khan, Farhan & Manal Rahman, Faria, 2024. "Does technology have a lead or lag role in economic growth? The case of selected resource-rich and resource-scarce countries," Resources Policy, Elsevier, vol. 89(C).
    6. Degirmenci, Tunahan & Yavuz, Hakan, 2024. "Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?," Energy, Elsevier, vol. 299(C).
    7. Erdogan, Sinan & Pata, Ugur Korkut & Kartal, Mustafa Tevfik, 2024. "The effectiveness of geopolitical risk, load capacity factor, and urbanization on natural resource rent: Evidence from top ten oil supplier countries," Resources Policy, Elsevier, vol. 96(C).
    8. Yunus Karaömer & Arif Eser Guzel, 2024. "Effect of Economic Policy Uncertainty on Stock Returns: Analysing the Moderating Role of Government Size," Politická ekonomie, Prague University of Economics and Business, vol. 2024(1), pages 50-72.
    9. Yilmaz Bayar & Marius Dan Gavriletea, 2018. "Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality," IJFS, MDPI, vol. 6(2), pages 1-13, May.
    10. Filiz ERATAŞ-SÖNMEZ & Yağmur SAĞLAM, 2019. "The Relationship between Financial Development and Economic Growth for Developing Countries: Panel Causality Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    11. Dong, Kangyin & Sun, Renjin & Hochman, Gal & Li, Hui, 2018. "Energy intensity and energy conservation potential in China: A regional comparison perspective," Energy, Elsevier, vol. 155(C), pages 782-795.
    12. Festus Victor Bekun & Gizem Uzuner & Muhammad Saeed Meo & Ashutosh Yadav, 2025. "Another look at energy consumption and environmental sustainability target through the lens of the load capacity factor: Accessing evidence from MINT economies," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2349-2366, August.
    13. Mamkhezri, Jamal, 2025. "Assessing price elasticity in US residential electricity consumption: A comparison of monthly and annual data with recession implications," Energy Policy, Elsevier, vol. 200(C).
    14. Rizwana Yasmeen & Ihtsham Ul Haq Padda & Xing Yao & Wasi Ul Hassan Shah & Muhammad Hafeez, 2022. "Agriculture, forestry, and environmental sustainability: the role of institutions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8722-8746, June.
    15. Shengmiao Han & Badrul Hisham Bin Kamaruddin & Xing Shi, 2025. "The Intertwined Threads of Blue Economy, Inclusive Growth, and Environmental Sustainability in Transition Economies," Sustainability, MDPI, vol. 17(3), pages 1-24, January.
    16. Feng Zhao & Yinyin Zhang & Majed Alharthi & Muhammad Wasif Zafar, 2022. "Environmental sustainability in developing countries: Understanding the criticality of financial inclusion and globalization," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1823-1837, December.
    17. Khurshid, Nabila & Jabeen, Asma & Shakoor, Usman & Munir, Fozia & Akram, Nabila, 2024. "Dynamic impact of shadow economy and corruption on environmental sustainability: What role renewable energy consumption play in case of South Asian Economies," Journal of Asian Economics, Elsevier, vol. 94(C).
    18. Godwin Olasehinde-Williams & Mehmet Balcilar, 2018. "The Long-run Effect of Geopolitical Risks on Insurance Premiums," Working Papers 15-44, Eastern Mediterranean University, Department of Economics.
    19. Viglioni, Marco Túlio Dinali & Calegario, Cristina Lelis Leal & Viglioni, Arthur Cesar Dinali & Bruhn, Nádia Campos Pereira, 2024. "Foreign direct investment and environmental degradation: Can intellectual property rights help G20 countries achieve carbon neutrality?," Technology in Society, Elsevier, vol. 77(C).
    20. Buhari DOĞAN & Osman DEĞER, 2018. "The role of economic growth and energy consumption on CO2 emissions in E7 countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(615), S), pages 231-246, Summer.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:7074-:d:1717454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.