On the nexus between globalization, tourism, economic growth, and biocapacity: evidence from top tourism destinations

Several studies have investigated the relationship between tourism, consumption of energy, globalization, and ecological footprint. However, the role of biocapacity alongside tourism development in environmental sustainability is yet to be documented in the extant literature. No doubt, the biocapacity of a country, its level of tourist’s arrival, as well as globalization all contribute immensely to ecological footprint. Consequently, this study looks at long-run and causality connections with a special focus on bio-capacity. The study uses the pooled mean group-autoregressive distributed lag model (PMG-ARDL) methodology to test the causality relationship during 2016 international tourists’ receipt from world tourism organization data files for 10 tourism destinations. Empirical result based on the panel PMG-ARDL confirms the environmental Kuznets curve (EKC) hypothesis for the 10 tourism destinations countries investigated. Furthermore, the panel ARDL estimator was used to estimate the short-run and long-run relationships simultaneously between biocapacity, tourist arrivals, GDP per capita, globalization, and ecological footprints. While the Dumitrescu and Hurlin panel causality test was used to establish causality relationships among the highlighted variables. The trade-off between economic growth and environmental quality suggests that tourist arrival dampens environmental quality. In addition, the study finds that growing biocapacity affects ecological footprints negatively. Furthermore, an increase in tourism-related activities, globalization, and economic production has the potential to damage the quality of the environment. To this end, given the study results, there is a need to pursue green tourism which can reduce environmental degradation and destruction of land caused by multiple tourism-related transportation and construction of tourist facilities respectively in the top ten tourist destination countries.