Local development, environment and tourism

地方發展水平, 环境状况與旅游業

Student thesis: Master's Thesis

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  • Sheng ZHAO

Related Research Unit(s)


Awarding Institution
  • Siu Hung Eden YU (Supervisor)
Award date4 Oct 2010


Development of the tourism industry shows an inverted U-shape pattern in that as regional growth continues, the tourism receipt to GDP ratio (TGR) first increases and then decreases. This phenomenon is explained by cross-sectional and time series data. Comparing this pattern with the N-shaped environmental Kuznets curve (EKC) shows an inverse relationship between TGR and EKC for developing and developed countries in recent decades. This thesis is the first to uncover this inverse relationship and provides a theoretical explanation: development level determines pollution source in the host economy; because changes in TGR alters the industry structure, pollution emission increases or decreases depending on whether the tourism sector is polluting or nonpolluting. Furthermore, by incorporating government manipulation into TGR, we carry out a welfare analysis using different scenarios in terms of pollution regulation, and offer strategies for tourism development under each scenario. Optimal TGR exists under certain conditions and interestingly has an opposite response to the improvement of the environmental awareness of residents in developing and developed countries. Keywords: TGR, EKC, Tourism, Development, Environment, Public Strategy

    Research areas

  • Tourism, Environmental economics, Community development