IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/123619.html
   My bibliography  Save this paper

Efficiency and sustainability of the tourism industry in Latin America

Author

Listed:
  • Cotte Poveda, Alexander
  • Pardo Martínez, Clara Inés

Abstract

The tourism industry is economically very important. According to the World Travel Tourism Council, in 2019, the tourism industry accounted for a quarter of all new jobs created worldwide, 10.3% of all jobs, and 9.6×1012 USD of the global gross domestic product. This study aimed to calculate the tourism efficiency index for different Latin American countries from 2010 to 2021 using data envelopment analysis, which analyzes the relationships between input variables (including the number of employees in the tourism industry and the number of hotel-type establishments) and output variables (including tourism expenditures in other countries and public social expenditures in recreation and culture per capita). Additionally, this study aimed to identify the countries with greater tourism development and the factors that may affect the development of the tourism industry through the stochastic frontier production function. The results of the tourism efficiency index for Central America (including Costa Rica, Dominica, El Salvador, Honduras, Mexico, and Panama) and South America (including Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay) exhibited different trends. However, after the global health crisis, the tourism industry recovered, showing new opportunities to promote sustainability. The results of the stochastic frontier production function demonstrated that countries with higher levels of inbound and outbound tourism, contribution of tourism to the economy, natural resources, and literacy rate exhibited more efficient tourism industry, whereas countries with higher pollution levels exhibited less efficient tourism industry. The findings of this study could allow us to formulate suitable public policies to promote tourism, maintain natural resources, and diversify these sectors with more inclusive programmes that can facilitate growth and benefit vulnerable communities.

Suggested Citation

  • Cotte Poveda, Alexander & Pardo Martínez, Clara Inés, 2024. "Efficiency and sustainability of the tourism industry in Latin America," MPRA Paper 123619, University Library of Munich, Germany, revised 02 Dec 2024.
    • Handle: RePEc:pra:mprapa:123619
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/123619/1/MPRA_paper_123619.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Khan, Anwar & Chenggang, Yang & Hussain, Jamal & Bano, Sadia & Nawaz, AAmir, 2020. "Natural resources, tourism development, and energy-growth-CO2 emission nexus: A simultaneity modeling analysis of BRI countries," Resources Policy, Elsevier, vol. 68(C).
    2. Clara Inés Pardo Martínez & Alexander Cotte Poveda, 2022. "The effects of environmental performance on competitiveness and innovation: a stochastic frontier approach for Colombia," Environment Systems and Decisions, Springer, vol. 42(1), pages 51-62, March.
    3. Sudeshna Ghosh, 2022. "Effects of tourism on carbon dioxide emissions, a panel causality analysis with new data sets," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3884-3906, March.
    4. Asif Khan & Sughra Bibi & Ardito Lorenzo & Jiaying Lyu & Zaheer Udden Babar, 2020. "Tourism and Development in Developing Economies: A Policy Implication Perspective," Sustainability, MDPI, vol. 12(4), pages 1-19, February.
    5. Castilho, Daniela & Fuinhas, José Alberto & Marques, António Cardoso, 2021. "The impacts of the tourism sector on the eco-efficiency of the Latin American and Caribbean countries," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    6. Wei Zhang & Ying Zhan & Ruiyang Yin & Xunbo Yuan, 2022. "The Tourism Eco-Efficiency Measurement and Its Influencing Factors in the Yellow River Basin," Sustainability, MDPI, vol. 14(23), pages 1-14, November.
    7. Fernandes, Vicente Aprigliano & Pacheco, Ricardo Rodrigues & Fernandes, Elton, 2022. "A dynamic analysis of air transport and tourism in Brazil," Journal of Air Transport Management, Elsevier, vol. 105(C).
    8. Dan Xue & Xianzong Li & Fayyaz Ahmad & Nabila Abid & Zulqarnain Mushtaq, 2022. "Exploring Tourism Efficiency and Its Drivers to Understand the Backwardness of the Tourism Industry in Gansu, China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    9. Lijuan Zhang & Azizan Marzuki & Zhenjie Liao, 2023. "The coordination pattern of tourism efficiency and development level in Guangdong Province under high-quality development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    10. Shengdong Zhu & Yuting Luo & Noshaba Aziz & Abdul Jamal & Qingyu Zhang, 2022. "Environmental impact of the tourism industry in China: analyses based on multiple environmental factors using novel Quantile Autoregressive Distributed Lag model," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 3663-3689, December.
    11. Shang, Yunfeng & Zhu, Lingrou & Qian, Fangbin & Xie, Yani, 2023. "Role of green finance in renewable energy development in the tourism sector," Renewable Energy, Elsevier, vol. 206(C), pages 890-896.
    12. Siyue Yang & Qiang Hao & Yichen Wang & Cheng Zhang, 2022. "Impact of the Participation of the Tourism Sector on Carbon Emission Reduction in the Tourism Industry," Sustainability, MDPI, vol. 14(23), pages 1-12, November.
    13. Manfred Lenzen & Ya-Yen Sun & Futu Faturay & Yuan-Peng Ting & Arne Geschke & Arunima Malik, 2018. "The carbon footprint of global tourism," Nature Climate Change, Nature, vol. 8(6), pages 522-528, June.
    14. Artti Juutinen & Anna-Kaisa Kosenius & Ville Ovaskainen & Anne Tolvanen & Liisa Tyrväinen, 2017. "Heterogeneous preferences for recreation-oriented management in commercial forests: the role of citizens’ socioeconomic characteristics and recreational profiles," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(3), pages 399-418, March.
    15. Hailiang, Zeng & Chau, Ka Yin & Waqas, Muhammad, 2023. "Does green finance and renewable energy promote tourism for sustainable development: Empirical evidence from China," Renewable Energy, Elsevier, vol. 207(C), pages 660-671.
    16. Daniel Badulescu & Ramona Simut & Ciprian Simut & Andrei-Vlad Badulescu, 2022. "Tourism at the Crossroads between Well-Being, Public Health and the Environment: Panel Data Evidence from the European Union," IJERPH, MDPI, vol. 19(19), pages 1-22, September.
    17. Haroon Rasool & Shafat Maqbool & Md. Tarique, 2021. "The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis," Future Business Journal, Springer, vol. 7(1), pages 1-11, December.
    18. Moayerian, Neda & McGehee, Nancy G. & Stephenson, Max O., 2022. "Community cultural development: Exploring the connections between collective art making, capacity building and sustainable community-based tourism," Annals of Tourism Research, Elsevier, vol. 93(C).
    19. Huang, Chin-wei, 2018. "Assessing the performance of tourism supply chains by using the hybrid network data envelopment analysis model," Tourism Management, Elsevier, vol. 65(C), pages 303-316.
    20. Yogeeswari Subramaniam & Tajul Ariffin Masron & Nanthakumar Loganathan, 2022. "Tourism and income inequality," Journal of Business and Socio-economic Development, Emerald Group Publishing Limited, vol. 2(2), pages 181-194, August.
    21. Sadyrbek Kozhokulov & Xi Chen & Degang Yang & Gulnura Issanova & Kanat Samarkhanov & Selvina Aliyeva, 2019. "Assessment of Tourism Impact on the Socio-Economic Spheres of the Issyk-Kul Region (Kyrgyzstan)," Sustainability, MDPI, vol. 11(14), pages 1-18, July.
    22. Song, Malin & Li, Hui, 2019. "Estimating the efficiency of a sustainable Chinese tourism industry using bootstrap technology rectification," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 45-54.
    23. Yufeng Cheng & Kai Zhu & Quan Zhou & Youssef El Archi & Moaaz Kabil & Bulcsú Remenyik & Lóránt Dénes Dávid, 2023. "Tourism Ecological Efficiency and Sustainable Development in the Hanjiang River Basin: A Super-Efficiency Slacks-Based Measure Model Study," Sustainability, MDPI, vol. 15(7), pages 1-17, April.
    Full references (including those not matched with items on IDEAS)

    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. Lingrou Zhu & Yunfeng Shang & Fangbin Qian, 2024. "RETRACTED ARTICLE: Green finance, renewable energy, and inbound tourism: a case study of 30 provinces in China," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-33, April.
    2. Maja Štimac & Mario Matković & Daria Karasalihović Sedlar, 2023. "Correlations between Hotel Size and Gas Consumption with a Feasibility Analysis of a Fuel Switch—A Coastal Case Study Croatia Adriatic," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    3. Md. Hasanur Rahman & Liton Chandra Voumik & Md. Jamsedul Islam & Md. Abdul Halim & Miguel Angel Esquivias, 2022. "Economic Growth, Energy Mix, and Tourism-Induced EKC Hypothesis: Evidence from Top Ten Tourist Destinations," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    4. Uktam Umurzakov & Shakhnoza Tosheva & Raufhon Salahodjaev, 2023. "Tourism and Sustainable Economic Development: Evidence from Belt and Road Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 503-516, March.
    5. Qi Wang & Qunli Tang & Yingting Guo, 2024. "Spatial Interaction Spillover Effect of Tourism Eco-Efficiency and Economic Development," Sustainability, MDPI, vol. 16(18), pages 1-19, September.
    6. Weimin Gong & Chengxin Wang & Dan Men & Ming Zhang & Aixia Xu, 2024. "The Synergistic Evolution Characteristics and Influencing Factors of Tourism Economy and Urban Green Development Efficiency in the Yellow River Basin," Sustainability, MDPI, vol. 16(19), pages 1-22, September.
    7. Chaogao An & Polat Muhtar & Zhenquan Xiao, 2022. "Spatiotemporal Evolution of Tourism Eco-Efficiency in Major Tourist Cities in China," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    8. Jing Zhang & Bing Xia, 2024. "Carbon Emissions and Its Efficiency of Tourist Hotels in China from the Supply Chain Based on the Input–Output Method and Super-SBM Model," Sustainability, MDPI, vol. 16(21), pages 1-27, October.
    9. Hrvoje Grofelnik & Nataša Kovačić, 2023. "Factors Influencing the Carbon Footprint of Major Road Infrastructure—A Case Study of the Učka Tunnel," Sustainability, MDPI, vol. 15(5), pages 1-14, March.
    10. Ali, Qamar & Yaseen, Muhammad Rizwan & Anwar, Sofia & Makhdum, Muhammad Sohail Amjad & Khan, Muhammad Tariq Iqbal, 2021. "The impact of tourism, renewable energy, and economic growth on ecological footprint and natural resources: A panel data analysis," Resources Policy, Elsevier, vol. 74(C).
    11. Li, Yinan & Huang, Yuxin, 2023. "Enhancing resources efficiency: Studying economic development in resource-rich regions for long-term sustainability of China," Resources Policy, Elsevier, vol. 86(PA).
    12. Azam Muhammad & Mahdiat Mahdiat & Hafeez Muhammad Haroon & Bakhtyar Baher, 2022. "Investigating the Role of Tourism in Economic Growth: Empirical Evidence from Pakistan," Polish Journal of Sport and Tourism, Sciendo, vol. 29(1), pages 39-47, March.
    13. Zhu, Ruikun & Xu, Qi & Xiqiang, Xia & Sibt-e-Ali, Muhammad & Waqas, Muhammad & Ullah, Irfan & Anwar, Ahsan, 2024. "Role of resources rent, research and development, and information and communication technologies on CO2 emissions in BRICS economies," Resources Policy, Elsevier, vol. 93(C).
    14. Geng, Yuqing & Zhang, Xiaorui & Gao, Juan & Yan, Yan & Chen, Lingyan, 2024. "Bibliometric analysis of sustainable tourism using CiteSpace," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    15. George Halkos & George Ekonomou, 2023. "Can Business and Leisure Tourism Spending Lead to Lower Environmental Degradation Levels? Research on the Eurozone Economic Space," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    16. Marie Kris Giango & Rodel Hintapan & Michael Suson & Ivy Batican & Looverville Quiño & Ludimie Capuyan & Jose Marie Anoos & Jannen Batoon & Joerabell Lourdes Aro & Fatima Maturan & Kafferine Yamagishi, 2022. "Local Support on Sports Tourism Development: An Integration of Emotional Solidarity and Social Exchange Theory," Sustainability, MDPI, vol. 14(19), pages 1-26, October.
    17. Yingying Hu, 2022. "Where Have Carbon Emissions Gone? Evidence of Inbound Tourism in China," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    18. Ahmad, Ejaz & Khan, Dilawar & Anser, Muhammad Khalid & Nassani, Abdelmohsen A. & Hassan, Syeda Anam & Zaman, Khalid, 2024. "The influence of grid connectivity, electricity pricing, policy-driven power incentives, and carbon emissions on renewable energy adoption: Exploring key factors," Renewable Energy, Elsevier, vol. 232(C).
    19. Qiao Wang & Meixian Wei & Nan Wang & Qiuhua Chen, 2024. "The Impact of Human Capital and Tourism Industry Agglomeration on China’s Tourism Eco-Efficiency: An Analysis Based on the Undesirable Super-SBM-ML Model," Sustainability, MDPI, vol. 16(16), pages 1-24, August.
    20. Asif Razzaq & Arshian Sharif & Paiman Ahmad & Kittisak Jermsittiparsert, 2021. "Asymmetric role of tourism development and technology innovation on carbon dioxide emission reduction in the Chinese economy: Fresh insights from QARDL approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 176-193, January.

    More about this item

    Keywords

    Tourism industry; Tourism efficiency; index Stochastic frontier; production function; Data envelopment analysis (DEA); Latin America.;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    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:pra:mprapa:123619. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.