Sustainable tourism management policies should aim at maximising economic benefits from tourist arrivals while minimising associated adverse impacts on the environment. This study assesses the short-run and long-run relationships between tourist arrivals, per capita economic output, emissions, energy consumption and capital formation, citing Nepal as a specific case study. We developed four hypotheses and tested them using time-series econometrics based on the autoregressive distributed lag model and Granger causality tests. The results provide strong evidence of an economy driven tourism sector where expansion in economic output leads to expansion in tourist arrivals. More tourist arrivals, in turn, generate positive impacts on gross capital formation. Energy consumption negatively affects tourist arrivals, calling for increased attention towards improving energy efficiency and energy diversity. We conclude that national policies to increase tourist arrivals should be integrated with national energy and environmental policies in order to facilitate the transition towards a sustainable tourism sector.

Item Type:	Refereed Article
Keywords:	sustainable tourism, autoregressive distributed lag (ARDL), granger causality, energy consumption, climate change
Research Division:	Economics
Research Group:	Applied economics
Research Field:	Tourism economics
Objective Division:	Commercial Services and Tourism
Objective Group:	Tourism services
Objective Field:	Economic issues in tourism
UTAS Author:	Nepal, R (Dr Rabindra Nepal)
ID Code:	129955
Year Published:	2019
Web of Science® Times Cited:	115
Deposited By:	TSBE
Deposited On:	2019-01-02
Last Modified:	2020-08-05
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