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Environmental Implications of the Tourism Industry

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  • Davies, Terry
  • Cahill, Sarah

Abstract

This report analyzes the environmental impacts of the tourism industry, which is the third largest retail industry in the United States, behind only automotive dealers and food stores. In 1998, travel and tourism contributed $91 billion to the U.S. economy, supporting 16.2 million jobs directly and indirectly. While extensive research has documented the significant economic impact of such service industries as tourism, little has been written about their effect on environmental quality. This study uses a framework developed from the industrial ecology literature to assess the impacts of the tourism industry on the environment. Three categories of impact are discussed: direct impacts, including impacts from the travel to a destination, the tourist activities in and of themselves at that destination, such as hiking or boating, and from the creation, operation, and maintenance of facilities that cater to the tourist; "upstream" impacts, resulting from travel service providers' ability to influence suppliers; and "downstream" impacts, where service providers can influence the behavior or consumption patterns of customers. We have identified impacts from tourist-related transportation, including aircraft, automobiles, and recreational land and marine vehicles; tourist-related development, tourist activities, and direct impacts of the lodging and cruise industries. Although the direct impacts of the lodging and cruise industries and impacts of tourist-related transportation were not very significant, we found on the other hand that tourist activities can have significant impacts, depending on the type and location of activity. Tourist-related development can also have significant cumulative impacts on water quality and the aesthetics of host communities. Opportunity for upstream and downstream leverage within the tourism industry is considerable. Hotels can exert upstream influence on their suppliers to provide environmentally sound products, such as recyclable toiletries. Similarly, the cruise industry can use its leverage to convince suppliers to improve the environmental quality of shipboard products. Opportunity for downstream influence exists as well. Travel agents can influence where and how a tourist travels, and tour operators can educate tourists about ways to minimize their impact on the environment. The fragmented nature of the tourism industry is not conducive to regulation that encompasses all aspects of the industry. Therefore, educational efforts aimed at supporting existing regulations and encouraging environmentally responsible behavior where no regulations exist seem most promising as a management scheme. These educational efforts should be framed in accordance with the targeted audience (i.e., tourists and industry sectors). Tourists may be more receptive to educational initiatives that focus on the environmental benefits of altering their behavior, while industry sectors are more likely to be responsive to educational efforts that emphasize cost savings and an improved public image.

Suggested Citation

  • Davies, Terry & Cahill, Sarah, 2000. "Environmental Implications of the Tourism Industry," Discussion Papers 10824, Resources for the Future.
  • Handle: RePEc:ags:rffdps:10824
    DOI: 10.22004/ag.econ.10824
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    Citations

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    Cited by:

    1. José Manuel Ordóñez-de-Haro & Jordi Perdiguero & Juan-Luis Jiménez, 2020. "Fuel prices at petrol stations in touristic cities," Tourism Economics, , vol. 26(1), pages 45-69, February.
    2. Jaelani, Aan, 2017. "Event dan festival di Cirebon: Review bauran pemasaran syari’ah [Event and festival in Cirebon: Review of shariah marketing mix]," MPRA Paper 77862, University Library of Munich, Germany, revised 17 Mar 2017.
    3. Fabio Cerina, 2007. "Tourism Specialization and Environmental Sustainability in a Dynamic Economy," Tourism Economics, , vol. 13(4), pages 553-582, December.
    4. Aan JAELANI, 2016. "Cirebon as the Silk Road: A New Approach of Heritage Tourisme and Creative Economy," Journal of Economics and Political Economy, KSP Journals, vol. 3(2), pages 264-283, June.
    5. Xiaorong He & Jizhi Shi & Haichao Xu & Chaoyue Cai & Qiangsheng Hu, 2022. "Tourism Development, Carbon Emission Intensity and Urban Green Economic Efficiency from the Perspective of Spatial Effects," Energies, MDPI, vol. 15(20), pages 1-23, October.
    6. Jaelani, Aan, 2017. "Event and festival in Cirebon: Review of shariah marketing mix," MPRA Paper 78624, University Library of Munich, Germany, revised 11 Apr 2017.
    7. S. Giannoni & F. Cerina, 2008. "Pollution Adverse Tourists and Growth," Working Paper CRENoS 200822, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    8. Carlos Gómez & Javier Lozano & Javier Rey-Maquieira, 2008. "Environmental policy and long-term welfare in a tourism economy," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(1), pages 41-62, March.
    9. Luz-Aída Martínez Meléndez, 2010. "NAFTA, tourism, and environment in Mexico," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 10(2), pages 107-131, June.
    10. Michailidou, Alexandra V. & Vlachokostas, Christos & Moussiopoulos, Νicolas, 2016. "Interactions between climate change and the tourism sector: Multiple-criteria decision analysis to assess mitigation and adaptation options in tourism areas," Tourism Management, Elsevier, vol. 55(C), pages 1-12.
    11. Davies, Terry & Konisky, David M., 2000. "Environmental Implications of the Foodservice and Food Retail Industries," Discussion Papers 10761, Resources for the Future.
    12. Art Padilla, 2004. "The Three Cs of Caribbean Tourism: Contexts, Characteristics, and Consequences," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 14.
    13. Denis Claude & Georges Zaccour, 2009. "Investment in Tourism Market and Reputation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(5), pages 797-817, October.
    14. Blanco, Ester & Lozano, Javier & Rey-Maquieira, Javier, 2009. "A dynamic approach to voluntary environmental contributions in tourism," Ecological Economics, Elsevier, vol. 69(1), pages 104-114, November.
    15. Ghafele, Roya & Gibert, Benjamin, 2012. "A New Institutional Economics Perspective on Trademarks. Rebuilding Post Conflict Zones in Sierra Leone and Croatia," MPRA Paper 37859, University Library of Munich, Germany.

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    Keywords

    Environmental Economics and Policy;

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