infrastructure and superstructure tourism

If you build it, they will come: Why infrastructure is crucial to tourism growth and competitiveness

Tourism is expanding globally, but can infrastructure keep up?

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Managing the development of tourism infrastructure

• Toolkit About the Sustainable Tourism Toolkit How to use this guide? Our Objective Resource Library
• Guides Strategic foundations Guide 1: Understanding Guide 2: Strategy Guide 3: Governance Guide 4: Engagement Core Delivery Guide 5: Communication Guide 6: Infrastructure Guide 7: Value Guide 8: Behaviour Guide 9: Investment Guide 10: Monitoring
• Case Studies Guide 1: Historic Town of Vigan Guide 2: Angkor Guide 2: Ichkeul National Park Guide 3: Melaka and George Town Guide 4: Avebury Guide 4: Old and New Towns of Edinburgh Guide 4: Great Barrier Reef Guide 4: Røros mining town and the circumference Guide 5: Røros Mining Town and the Circumference Guide 6: Cornwall and West Devon Mining Landscape (United Kingdom) Guide 7: Røros Mining Town and the Circumference Guide 8: Wadi Al-Hitan Guide 9: Land of Frankincense

What this guide 1 will tell you

This guide 6 will tell you why infrastructure is vital to sustainable tourism and how to begin the process of developing appropriate infrastructure.

Steps to success

Why this matters.

According to the World Tourism Council, infrastructure is the single most important key to tourism growth and performance. Tourists use a tiny fraction of their overall visitor spending at the actual heritage site in most destinations; main tourism spending goes towards transport and travel , accommodation, food and drink, and retail and leisure. Understanding the tourism market is not normally the job of heritage managers , but to gain the most economic benefit from visitors they need to develop products , services, or partnerships that return more financial value. This extra revenue would, in turn, support site management and sustainability.

You should undertake destination development with an awareness of the commercial realities of your destination: how can you sustainably encourage increased spending from tourists to benefit your site and/or local community? You also need to be aware that tourism often results in massive increases in the population of some communities, especially during the peak seasons, and this raises many issues about the sustainability of the destination as a whole.

Begin a master-planning process to ensure the infrastructure is fit-for-purpose for future tourism development and does not negatively affect the OUV

Any infrastructure developments in a World Heritage property would require the completion of an independent Heritage and/or Environmental Impact Assessment to be completed before any such projects are undertaken. You can find more information on Heritage Impact Assessments from ICOMOS here and Environmental Impact Assessments from IUCN here .

Identify the key stakeholders who can influence the physical development of the destination in the future. Stages 1 and 2 should have established whether tourism growth is appropriate, manageable at your destination, and how best this might happen. This will often require a long-term approach to managing the development of infrastructure.

With some sites experiencing growth of visitor numbers at 20-40% per annum, some destinations will have to make big decisions about curtailing growth or developing the infrastructure to deal with it. You might need to involve people with expertise in water, waste, transport, and tourism trends and markets analysis, so the different elements of the destination are effectively interlinked.

Start by identifying what is needed to make the current tourism sector more sustainable, and what might also be needed for any projected or desired growth in visitor numbers. There is no point having unachievable goals , but if the current or future demand exceeds the capability of the current infrastructure, then something has to give. It may mean some form of control to manage numbers, or the need for new infrastructure.

If people cannot get to your site or have no place to stay – no matter what you do to encourage them – they simply cannot visit . Many destinations have high room occupancy in peak season and cannot (without new hotels, etc.) accommodate more visitors. If there is no spare capacity , or it is not sustainable to increase capacity, then your destination is left with two options:

• Use your World Heritage and your site’s story to attract visitors in the non-peak months, which would sustain tourism jobs for local people year-round.
• Simply do not try to increase visitor numbers. Instead, develop and implement a strategy for changing the visitor profile to higher spending, more sympathetic and more sustainable visitors, using WH Status as a driver.

Some sites with little or no hotel infrastructure have developed a system of 'home stays ', which enable visitors to stay with local people. This also means that the host community secures a greater share of visitor spending.

Making tourism more sustainable requires careful thought about the transport infrastructure in order to minimize CO2 emissions and congestion. It also demands that accommodation minim izes its ecological footprint through good management practices and strategic thinking about water, renewable technologies, and food and waste management. Provide tourism businesses with clear guidelines about the need for appropriate systems to treat, re-use, or safely release waste water or solid wastes, as well as other forms of pollution (such as light and noise pollution). You can also encourage businesses to publicize their energy reductions and sustainability commitments. If analysis of your infrastructure does not look at tourism in its widest sense, then it will be flawed and poorly developed.

Develop a spatial masterplan for the destination

Invest in a master-planning process that takes account of the constraints and responsibilities of a World Heritage site. Many destinations will experience development that has a capital cost of many hundreds of millions of dollars. Given this scale of investment, it makes good sense from both a commercial and a conservation perspective to have a masterplan that sets the parameters of growth. This often requires specialist support or at least a combined effort of specialist heritage staff and planners who can work together to develop a plan that makes it clear to everyone:

• Where things can and cannot happen
• What the requirements would be of any development
• Why these decisions have been made

It is essential that stakeholders believe the future of the destination can be shaped , influenced, and ultimately designed to be fit-for-purpose – this is how great destinations secure the outcomes they desire. It is about developing a progressive vision for tourism that protects, conserves, and respects important heritage and delivers outcomes that are desired by the host communities. The alternative is a laissez-faire approach in which conservationists will always be fighting a reactive battle against the negative effects of tourism growth.

Publish the masterplan so that tourism businesses, the community, and conservationists all know what kinds of development are appropriate in any given area of the destination. No tourism business enjoys being told its growth is potentially constrained by its location, but it is worse to invest large amounts of money in plans and ideas that are not likely to be approved because they may have a negative effect on the OUV of the site. There are times a great deal of money allows projects to go ahead. However, by damaging the heritage, you ultimately waste that money by destroying the OUV, which is the attraction of that destination to tourists.

Plan ahead for the infrastructure you need to achieve the strategic goals you desire

Location matters. The location of tourism infrastructure – airports, railways stations, bus depots, hotels, B&Bs, restaurants, bars, cafes, museums, retail outlets, etc. – usually defines where visitors will spend their money, who will benefit from it, who will not, and where the ecological footprint of the visitor is experienced. Changing the location of infrastructure can have profound positive or negative impacts on the heritage, the host community, and their culture and quality of life. If the strategic goal is to offer improved economic opportunities for local people, then it is imperative some of the tourism infrastructure where money is spent is in locations that local people can own , manage, or work. For heritage management reasons, it may be necessary to relocate infrastructure away from the heritage, or to develop new infrastructure at some distance to ensure that resources, such as water and waste can be managed effectively. Keep in mind where this happens, there is a risk of the host community being excluded from significant economic benefits.

Some sites are already serviced by infrastructure located some distance away from the site, and this has both benefits and costs – the cost being that much of the economic impact is lost as visitors stay, eat, drink, shop, and relax elsewhere. In these situations, there can be a mismatch between those who suffer the costs and constraints of the site, and those who benefit and profit. In these instances, some mechanisms to return revenue to the host community are often needed ( see Guide 9 on Fundraising and Investment). If your tourism infrastructure is in the wrong location, you need to consider either :

• Developing economic infrastructure in a more appropriate location
• Working within your infrastructure constraints
• Or creating a ‘payback’ mechanism to link the distant tourism infrastructure to the costs of the site.

Scale matters. Larger businesses are less likely to be locally owned, but they are often more efficient, productive, and return higher wages to the local community. Because of their scale, l arger businesses can deliver service to a larger numbers of visitors at lower prices, but economic sustainability suffers as profits from the business are often not retained locally, regionally, or even nationally. On the other hand, local sustainable tourism initiatives are small and lack the scale and capacity to cater to the majority of visitors to a destination. Critically, small businesses may not be able to offer the year-round, skilled employment, salary, or career progression opportunities larger businesses can.

The challenge for your site is to find the balance between the benefits of large scale businesses that can provide high quality employment and tourist services, and the smaller sustainable businesses, which are much more likely to be locally owned and managed. Support host communities to develop their businesses to have the necessary scale to maximize benefit. One solution is to explore different ownership models for hotels and other areas of infrastructure so the host community or groups of residents can develop a share in the destination.

Quality matters. Cultural and World Heritage tourists are more economically valuable , but they also have higher expectations about quality. The ability to secure the maximum benefit from tourism in a destination is inextricably tied to the quality of product , particularly the accommodation your destination offers. If your site lacks enough quality accommodation, it could significantly affect the economic profile and impact of the tourists visiting your site – the more visitors to your destination that stay in good quality accommodation, the greater their spending . You need to understand if the quality of your accommodation stock is limiting the economic potential from particular types of visitor, and then work with businesses to improve quality . Some destinations have developed quality improvement programmes with support and incentives for businesses willing to invest their own money in raising standards. Accreditation can be a powerful way to reward investors for doing the right kind of development – with incentives for those who go the extra mile, such as promoting the most sustainable businesses prominently on the World Heritage website.

Capacity matters . Your work on understanding tourism ( Guide 1 Understanding Tourism) should have revealed what the capacity curve for your destination looks like. In most cases, there is a peak period, when the existing accommodation is close to capacity, and ‘shoulder’ or off-peak seasons, when it is running well below capacity. One of the most sensible ways to improve the economic performance of a destination, and ensure local people have all-year-round employment, is to promote off-peak season visits . This requires little or no new infrastructure, and it can make a big difference to the efficiency of the destination. Simply building more peak season capacity can often be misguided and unsustainable.

Ownership matters . In many destinations the opportunities for local people are limited to low skilled and lower paid roles, so when developing plans for the future of your destination, explore whether or not some of the desired infrastructure can be developed in ways that will benefit the host community. There are a range of ownership models that enable communities to own elements of the tourism infrastructure or be shareholders in it. Some destinations have strong cooperatives of individuals or businesses that offer products, services, or experiences, and they have invested in such models to empower local people . Ownership gives local people more control and a share of the profits. However, it should also be pointed out that ownership is not always critical. Most turnover for a hotel is in wages, with the profit being only a small margin of that turnover.

Transport and routing matters. Being able to influence transport is crucial to creating a sustainable system at many World Heritage sites. It is important that destinations develop itineraries with transport providers that encourage more sustainable transport, but also influence where people stop to spend their money and where they have their environmental impact. Simple things like having a rest room break before entering a site can reduce the water usage and waste disposal issues within a site.

All growth needs to be in the context of respecting and conserving the OUV of the World Heritage site and its environs

Above all, it is the responsibility of the destination to protect the heritage from irresponsible development through planning or 'development control'. The World Heritage site, itself, and the designation are key assets for any destination – all plans for developing infrastructure need to be based on a deep respect for, and understanding of, the World Heritage site. It is crucially important that the sense of place and distinctiveness are protected. These guides are based on the assumption that sites value their World Heritage status and have planning control systems that can protect the heritage from development that is not appropriate. Work hard to retain the sense of place, distinctiveness, and authenticity of the destination. When you do have to build new infrastructure, work closely with planning control officers so they understand the need to balance heritage conservation and the demand for development.

Secure and encourage investment to make your plans a reality

Encourage the private sector to develop the infrastructure . The role of destination management is to define the parameters of growth – setting out what is appropriate (and where) in a tourism destination. This will often mean that the development that does take place will be commercial.

Develop a Community Fund to help local people and communities secure the capital needed to offer goods, services, and products to visitors. Relatively small amounts of seed capital can give local people a foothold in the marketplace ( See Guide 9 Fundraising and Investment).

Identify any public realm or free-to-access infrastructure needed and find a way to deliver it. In this case, it is critical that an effective case is researched, well-crafted, and specific to the investment sought ( See Guide 9 Fundraising and Investment).

Guide 6 PDF version

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Why infrastructure is crucial to our tourism growth vision

The World Economic Forum recently published its Travel and Tourism Competitiveness Report 2019, which provides an insight into global trends and the state of the travel and tourism industry across the world. With international tourist arrivals reaching 1.4 billion in 2018—two years earlier than previously anticipated—this is clearly an industry that is expediting global connectedness and mobility. Currently, contributing to 10 percent of the world's GDP, the travel and tourism industry is, by some estimates, poised to take this number to 50 percent within the next decade.   

But first things first: Bangladesh ranked 120 amongst the 140 countries that were considered for this report. We are at the foot of the table if ranked in the context of South Asia, where India (34), Sri Lanka (77) and Nepal (102) are—not surprisingly—ahead of us, and we only have Pakistan behind us, ranked 121. There is usually a general feeling of apprehension amongst industry stakeholders whenever a global ranking gets published. People's responses vacillate between polemics against the ranking system and a sense of general despair. Neither approach is completely desirable if we want to learn from these rankings, which is one of the major reasons for publishing these indexes. We should look at these indexes from a more analytical perspective and assess where we are within the world. This should guide us towards an honest reflection and some much-needed soul searching to understand why are we lying at the bottom of the list, despite having two of the most unique natural attractions of the world, in Cox's Bazar and the Sundarbans.

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To understand the underlying causes behind the poor performance, let's take a look at the framework which was followed when building out the index. The index looked at four broad areas: enabling environment, travel and tourism policy and enabling conditions, infrastructure, and natural and cultural resources. These broad areas are further divided into 14 pillars, which themselves are subdivided into 90 indicators. The pillars encompass a variety of sectors including business environment, price competitiveness, tourist service infrastructure and natural resources, to name a few. Among the pillars, which really are building blocks of this competitiveness index, Bangladesh is shown to have been severely wanting when it comes to infrastructure. According to the report, the tourist service infrastructure is one of the poorest in the world where Bangladesh has made no significant improvement in the last couple of years, with our ranking in this specific category remaining unchanged at 133. 

Then if we look at the rest of the world, we can identify one of the biggest findings of this year's report: growth in tourism-friendly infrastructure—roads, ports, airports and hotel accommodation, for example—has languished at only 1.4 percent. So, on one side of the continuum, we are seeing an increase in international tourist arrivals, and on the other side, there is a dearth of investment going behind developing infrastructure to support the tourists. This is easily a recipe for disaster in terms of sustaining the natural ecosystem and socio-cultural characteristics of a destination. It is quite evident that this is a problem not just for Bangladesh; the whole world is also struggling in that respect. 

An example of investment in infrastructure done right can be Spain, a country which, not coincidentally, has topped the ranking for three years in a row. Spain had spent millions of euros in the past decade on updating its roads, railways and airports, the benefits of which are being reaped right now. Infrastructure—including air, ground, port, and tourism services like hotel rooms and car rental services—plays a vital role in travel and tourism competitiveness, serving as the arteries of the industry.

But there is another side to this infrastructure investment story, that of overtourism, a phenomenon defined by tourists pouring into a destination and going beyond its capacity. Nowhere in the world is it truer than in Barcelona where the annual influx of visitors—32 million versus the city's 1.6 million residents—has caused a groundswell of anti-tourist sentiment among locals. Competition for accommodation has driven up real-estate prices and tourists have overwhelmed the city's coastal areas, in some cases accelerating shore erosion. A parallel can easily be drawn with Cox's Bazar in Bangladesh, especially during holiday seasons.

It is also worth remembering that competitiveness relies on more than just infrastructure. Emerging economies like Bangladesh also have more work to do when it comes to improving business environments, addressing safety and security concerns and reducing travel barriers. Natural assets, which attract a significant number of visitors internationally, also need to be better protected. For example, South America and Southeast Asia outscore the global average for natural resources by about 27 percent and 11 percent, respectively, but these regions scored below average for environmental sustainability. Consequently, many countries following this trajectory may be at risk of damaging the very assets that make great travel destinations.

The problems that we are facing in the 21st century are very different from what we faced in the last century. The very nature of technology, people and society is changing rapidly in the midst of what many people are calling a Fourth Industrial Revolution. Any tourism policy in today's world has to take into account the nuances of how the tourist experience changes in response to this global phenomenon. Investment in better infrastructure in a thoughtful manner is the beginning, but certainly not the only tool in the horizon of opportunities that the tourism sector brings with itself. Bangladesh's position will improve if we make an effort to develop our tourism policies considering the future, not based on what has worked in the past.

Sabrina Rahman is an assistant professor at the American International University-Bangladesh (AIUB).

নির্বাচন পর্যন্ত ৩ দিনের দামে ৭ দিনের ডেটা প্যাকেজ দেওয়ার নির্দেশ

এক মোবাইল অপারেটরের নাম প্রকাশে অনিচ্ছুক এক শীর্ষ কর্মকর্তা দ্য ডেইলি স্টারকে বলেন, ‘একটি প্রতিষ্ঠান ১০ গ্রাম প্যাকের দামে ২৫ গ্রাম শ্যাম্পু প্যাক বিক্রি করবে না।’

আগুন নিয়ে নেমেছে, সতর্ক পাহারায় থাকবেন: নেতাকর্মীদের কাদের

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• Published: 07 January 2022

Tourism infrastructure and the environment: how does environmental regulation affect welfare, tourism industry, and domestic wage inequality?

• Takanori Shimizu   ORCID: orcid.org/0000-0001-7107-1357 1 &
• Hisayuki Okamoto 2  

The Japanese Economic Review ( 2022 ) Cite this article

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This study presents a general equilibrium model of a small open developing economy with pollution generated by the tourism industry. The national government issues emission permits and constructs tourism infrastructure for the tourism sector. We examine the effects of a stricter environmental regulation on welfare, production, and income distribution. If the elasticity of substitution in the tourism sector is sufficiently low, a stricter environmental regulation paradoxically expands the tourism sector and narrows domestic wage inequality, even under constant tourism terms of trade. In this model, in addition to the two traditional channels, there is a new channel through which a stricter environmental regulation affects the tourism terms of trade and domestic welfare. The new channel, which arises from the difference between the marginal value product of tourism infrastructure and its price, improves the tourism terms of trade and domestic welfare if (1) the marginal value product of tourism infrastructure is greater than its price, (2) the output of tourism infrastructure is increased by a stricter environmental regulation, and (3) the excess supply of a tourism service decreases with a stricter environmental regulation.

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1 introduction.

The tourism industry has become an important sector for both developed and developing countries as it creates employment opportunities and attracts foreign currency. The tourism sector requires a large amount of investment, for example, water supply, sewerage systems, ports, airports, parks, highways, and tourism promotion by authorities (e.g., Visit Japan, Incredible India, and Malaysia Truly Asia), which is rather difficult to be financed only by the private sector. Therefore, a national government needs to construct public infrastructure for the tourism industry, hereafter referred to as tourism infrastructure. At the same time, the tourism sector causes environmental damage. For example, the concentration of people degrades the water quality in the local community, and traffic congestion pollutes the air by the emission of fumes. Footnote 1 , Footnote 2 To mitigate these negative effects, the government introduces an environmental regulation by issuing emission permits to control the amount of pollution. The government can use the revenue from selling pollution permits to construct tourism infrastructure. In general, by reducing the number of emission permits, a stricter environmental regulation tends to discourage the tourism sector, while the formation of tourism infrastructure encourages the sector. A stricter environmental regulation directly improves welfare by reducing the disutility of pollution; at the same time, the price of a tourism service affects consumption patterns and income levels. Thus, it is important to consider the welfare effects of a stricter environmental regulation.

According to ILO ( 2018 , pp. 16–17), the extent of wage inequality—measured by the Gini coefficient—is higher in low- and middle-income countries than in high-income countries. Therefore, rising wage inequality is a serious problem for many developing countries. Footnote 3 This gives rise to the need for developing countries to find a policy that mitigates domestic wage inequality. As pointed out by Aynalem et al. ( 2016 , p. 3), “generally speaking, the tourism and hospitality sector is recognized as having low hourly rates of pay, overtime work without extra money, long working hours of 50 h per week, little or no adequate breaks during peak season periods.” Footnote 4 It follows that, in addition to the welfare level, the wage gap between the tourism sector and other sectors is one of the most important concerns for policymakers.

In general, an environmental regulation affects the outputs of industries, including the tourism sector, which in turn causes a change in the factor reward employed in each industry and domestic income inequality. However, there are relatively few theoretical analyses of the effect of environmental policy on domestic wage inequality in the presence of tourism. Exceptions include Chao et al. ( 2012 ) and Nakai et al. ( 2018 ). The present study aims to fill this gap in the literature.

There are many theoretical studies on the analysis of international tourism. In this regard, Copeland ( 1991 ) has made a seminal contribution to the literature. Although he analyzed the effect of a tourism boom (an increase in the demand for tourism services by foreign tourists) on the tourism terms of trade (the price of tourism services exported through international tourism) and welfare, the environmental pollution problem was not considered. In recent years, there have been many studies on tourism and the environment, including Beladi et al. ( 2009 ), Chao et al. ( 2008 , 2012 ), Gupta and Dutta ( 2018 ), Nakai et al. ( 2018 ), Yabuuchi ( 2013 , 2015 , 2018 ), and Yanase ( 2017 ). Beladi et al. ( 2009 ) constructed a two-good (one traded good and one tourism service) model in which pollution is emitted as a by-product of the tourism service and derived the optimal pollution tax rate that maximizes social welfare. They found that the optimal pollution tax rate does not coincide with the Pigouvian level, that is, the marginal environmental damage to domestic residents. Footnote 5 Chao et al. ( 2008 ) considered a three-good (two traded goods and one tourism service) model in which pollution is generated by a manufacturing industry and derived a combination of optimal pollution tax and import tariff. They found that the optimal import tariff rate is positive. By constructing a three-good model in which the tourism sector requires pollution emissions as an input, Yanase ( 2017 ) showed that if the excess supply of tourism services rises with a pollution tax, the optimal pollution tax level is lower than the Pigouvian level. By constructing a two-good model where the manufacturing industry is under perfect competition while the tourism sector is under oligopoly, and both tourism and manufacturing industries require pollution permits as an input, Chao et al. ( 2012 ) found that if the factor cost share of emission permits in the tourism industry is lower than in the manufacturing sector, a stricter environmental regulation narrows wage inequality. They also showed that if the stricter environmental regulation greatly improves the tourism terms of trade, domestic welfare also improves. In a two-good model where both tourism and manufacturing industries are under perfect competition, Nakai et al. ( 2018 ) showed that an improvement in tourism terms of trade narrows domestic wage inequality.

In a three-good Harris–Todaro model where agriculture and tourism industries are located in the rural area and the manufacturing sector is located in the urban area, Yabuuchi ( 2013 ) found that a tourism boom (pollution tax) reduces (increases) the urban unemployment rate, which positively (negatively) affects domestic welfare. By considering the negative production externality of the tourism industry to agriculture, Yabuuchi ( 2015 ) showed that a tourism boom (pollution tax) increases (decreases) the urban unemployment rate. Further, Yabuuchi ( 2018 ) introduced a subsidy to agriculture financed by pollution tax, and showed that a tourism boom can reduce the urban unemployment rate if the subsidy rate is sufficiently high relative to the negative externality of the tourism sector.

In a dynamic model of tourism and the environment, Gupta and Dutta ( 2018 ) showed that a tourism boom expands the tourism sector in the short run but contracts it in the long run. Meanwhile, Yanase ( 2015 ) analyzed the role of infrastructure in the tourism industry in a dynamic setting. He showed that if the economy specializes in the production of tourism services, a tourism boom improves the tourism terms of trade and makes the economy better off. However, he did not consider environmental problems.

The above-mentioned studies on tourism and the environment consider only production-generated pollution. In many studies on trade and the environment, pollution is generated during the production process. For example, Copeland and Taylor ( 2003 ) dealt only with production-generated pollution. However, the pollution emitted during consumption should not be neglected. For the analysis of trade and consumption-generated pollution, see Beghin and Roland-Holst ( 1997 ) and Copeland ( 2011 , Sect. 6.2). On the one hand, Beghin and Roland-Holst ( 1997 ) considered both production-generated and consumption-generated pollution and analyzed the effects of pollution tax (imposed on producers and consumers), trade tax (import tariff), and emission tax on welfare. On the other hand, Copeland ( 2011 , Sect. 6.2) analyzed the welfare effects of emission tax on consumption (differentiated by domestic goods and foreign goods) and trade tax. However, in the above two studies, only traded goods are considered; thus, the good prices are constant under the assumption of a small open economy. In contrast, the price of tourism services (i.e., the tourism terms of trade) is endogenously determined in the domestic market.

In summary, no study has examined the effects of environmental policy on domestic welfare and the wage gap in the presence of tourism infrastructure. The research question in this paper, therefore, is as follows: Does a stricter environmental regulation improve domestic welfare or narrow domestic wage inequality in an economy with tourism infrastructure?

To answer the above question, we present a polluted small open developing economy model with infrastructure in the tourism sector and examine the effects of an environmental regulation on output, income distribution, and welfare. In this study, pollution is an input into tourism service. Footnote 6 The government issues emission permits to the tourism industry and constructs tourism infrastructure. Unskilled labor is a specific input into the tourism service industry. If the elasticity of substitution in the tourism sector is sufficiently low and the tourism terms of trade are constant, a stricter environmental regulation paradoxically expands the tourism industry. In that case, domestic wage inequality narrows as a result of the stricter environmental regulation. The intuitive reason is as follows. If emission permits are hardly substituted by unskilled labor, a stricter environmental regulation—by decreasing the number of emission permits—greatly raises the price of emission permits, leading to an increase in revenue from selling emission permits. Hence, the government can obtain more resources to construct tourism infrastructure, which increases the output of the tourism service and the wage of unskilled labor.

In this study, we provide a two-final-good model with tourism infrastructure that improves the productivity of the tourism sector. To finance the cost of infrastructure, the Lindahl pricing rule (the price of public intermediate goods is equal to its marginal value product) has been traditionally adopted (Okamoto, 1985 ). However, this study does not assume the Lindahl pricing rule. Thus, the tangency property with respect to the production possibility curve, the envelope theorem with respect to the revenue function, and the reciprocity relations (the Stolper–Samuelson effect is equal to the Rybczynski effect) do not necessarily hold. Footnote 7 Resultantly, we obtain an interesting result that a stricter environmental regulation may expand the tourism industry. This result does not appear in the existing literature on tourism and the environment.

This study also examines welfare implications. Regarding the tourism terms of trade and the welfare effects of a stricter environmental regulation, two traditional channels have been pointed out by Beladi et al. ( 2009 ) and Yanase ( 2017 ). Our study includes an additional channel arising from the difference between the marginal value product of tourism infrastructure and its price. It will be shown that the new channel improves the tourism terms of trade and domestic welfare under certain conditions.

The remainder of this paper is organized as follows. In Sect.  2 , we describe the setup of the model. Section  3 conducts a comparative statics analysis of the supply side of the economy. In Sect.  4 , we examine the effects of a stricter environmental regulation by considering both the supply and demand sides of the economy. Section  5 presents the concluding remarks.

2 The model

Consider a small open developing economy that produces a manufacturing good X and a service T. The manufacturing good is traded while the service is non-traded in the absence of foreign tourists. The service is exported through international tourism, and the manufacturing good is imported. We call service T a tourism service, and its price as the tourism terms of trade. Suppose that the production of the manufacturing good requires capital K and skilled labor S, while the production of the tourism service requires unskilled labor L and pollution emission Z. In other words, skilled labor (unskilled labor) is a specific input into the traded good (tourism service) industry. This specification, which is also adopted in Chao et al. ( 2010 , 2012 ), is consistent with the observations of Marjit and Acharyya ( 2003 ) and Chao et al. ( 2010 ). Marjit and Acharyya ( 2003 , p. 117) pointed out that “most of the non-traded production in the LDCs uses unskilled labour intensively”, while Chao et al. ( 2010 , p. 455) stated that “for developing economies, the exportable sector tends to be relatively intensive in unskilled labor”. The domestic government collects revenue from selling emission permits and uses this revenue to construct tourism infrastructure. For simplicity, suppose that the tourism infrastructure requires only capital input, Footnote 8 and further assume that the formation of tourism infrastructure only enhances the productivity of the tourism industry. Footnote 9 Therefore, the cost of tourism infrastructure is financed by the user pay principle. In other words, firms in the tourism sector—the beneficiaries of tourism infrastructure—bear the cost through the payment for pollution permits.

The production function of manufacturing good (or traded good) X is given by

where \({K}_{j}\) denotes the capital input into good \(j\) and \(S\) is the endowment of skilled labor. Function \(X\) is assumed to be the neoclassical type of production function that exhibits homogeneity of degree one, and to be strictly quasi-concave.

The production function of the tourism service is given by

Function \(N\) has the same properties as function \(X\) , that is, the neoclassical properties. Moreover, function \(g\) represents the positive externality of the infrastructure, \(M\) is the amount of tourism infrastructure devoted only to the tourism industry, \(L\) is the endowment of unskilled labor, and \(Z\) is the amount of pollution. Keeping \(M\) unchanged and doubling \(L\) and \(Z\) , the output of tourism service \(T\) doubles. This implies that the tourism infrastructure has no congestion effect. This means that the tourism infrastructure in this study is the creation of the atmosphere type in Meade’s ( 1952 ) terminology. For example, \(M\) is considered a tourism promotion campaign by tourism authorities, which reduces advertisement costs. Given the amount of production input, an increase in \(M\) results in an increase in the output of the tourism service. Therefore, \(g\) is an increasing function of \(M\) . For the positive externality of intermediate goods or infrastructure, see Okamoto ( 1985 ) and Yanase ( 2015 ).

We assume \(g\) is twice continuously differentiable and has the following properties:

The first condition implies that if there is no tourism infrastructure, the productivity of the tourism sector does not change. The second and third conditions mean that tourism infrastructure has a positive and diminishing effect on the productivity of the tourism sector. Finally, the last two conditions are known as the Inada conditions. Yanase ( 2015 ) made a similar assumption.

The production function of tourism infrastructure is

where \({a}_{ij}\) is the amount of factor \(i(=L,S,K,Z)\) to produce one unit of good \(j(=X,T,M)\) . We assume a linear production function for tourism infrastructure and, thus, \({a}_{KM}\) is constant.

We now examine the equilibrium conditions for the supply side of the economy. We assume that perfect competition prevails in the manufacturing and tourism industries. The zero-profit condition (the price of the good is equal to its unit cost) for the traded good industry is

where \({p}_{X}\) is the price of traded goods, \({w}_{S}\) is the wage of skilled labor, and \(q\) is the rental rate of capital. Note that \({p}_{X}\) is constant under the assumption of a small open economy. Applying Shephard’s lemma, we obtain the unit requirement of factor \(i\) in the production of good \(j\) ( \({a}_{ij}\) ) by differentiating the unit cost function with respect to the associated factor price.

The zero-profit condition for the tourism service industry is

where \({p}_{T}\) is the price of the tourism service, \({w}_{L}\) the wage of unskilled labor, and \(r\) the price of emission permits.

The zero-profit condition for tourism infrastructure sector is Footnote 10

where \({p}_{M}\) is the shadow price of tourism infrastructure.

Next, we consider the factor market equilibrium conditions. Factor endowments are provided exogenously. The full employment condition of capital is

The demand–supply equality of skilled labor requires

The market equilibrium condition of unskilled labor requires

The amount of pollution is given by

Finally, the budget constraint of the government is

where the left-hand side (LHS) denotes the revenue from selling emission permits, and the right-hand side (RHS) denotes the cost of constructing tourism infrastructure. Equations ( 1 )–( 8 ) include eight unknowns: \(X\) , \(T\) , \({w}_{L}\) , \({w}_{S}\) , \(q\) , \(r\) , \({p}_{M}\) , and \(M\) . Given \({p}_{T}\) , the above eight equations determine eight unknowns. Footnote 11 Note that the price of tourism infrastructure \({p}_{M}\) is determined to satisfy the government’s budget constraint (8). It follows that the traditional Lindahl pricing rule does not necessarily hold; thus, we obtain different properties from the standard trade theory.

To facilitate the following analysis, we introduce the elasticity of factor substitution. The elasticity of substitution in each sector \({\sigma }_{j}\) is defined as

A hat over a variable implies the rate of change: for example, \({\widehat{w}}_{S}\equiv d{w}_{S}/{w}_{S}\) .

The cost minimization in each sector requires Footnote 12

where \({\theta }_{ij}\) represents the cost share of factor \(i\) in sector \(j\) .

Solving Eqs. ( 9 ) and ( 11 ), we obtain

Similarly, solving Eqs. ( 10 ) and ( 12 ), we have

Differentiating Eq. ( 1 ) totally and taking into account Eq. ( 11 ), we obtain

Differentiating Eq. ( 2 ) totally and considering Eq. ( 12 ), we obtain

where \(\xi \equiv \frac{g^{\prime}M}{g} > 0\) denotes the elasticity of \(g\) with respect to \(M\) , or the productivity improvement rate of the tourism industry by additional tourism infrastructure. By definition, \(\widehat{g}=\xi \widehat{M}\) holds.

Since \({a}_{KM}\) is constant, Eq. ( 3 ) implies

Differentiating Eq. ( 4 ) and substituting Eq. ( 14 ), we obtain

where \({\lambda }_{ij}\) is the share of factor \(i\) in the production of good \(j\) .

Differentiating Eq. ( 5 ) and substituting Eq. ( 13 ), we obtain

Differentiating Eq. ( 6 ) and using Eq. ( 15 ), we have

Differentiating Eq. ( 7 ) and substituting Eq. ( 16 ), we obtain

Differentiating Eq. ( 8 ) and considering Eq. ( 19 ), we obtain

Equations ( 17 ), ( 18 ), and ( 20 )–( 24 ) are expressed in matrix form as follows:

This is the system of the equations describing the supply side of the economy.

3 Comparative statics: supply side analysis

The supply side of the economy (Eqs. ( 1 )–( 8 )) determines the outputs and factor prices (and, therefore, factor demands). In this section, utilizing Eq. ( 25 ), we examine the effects of a stricter environmental regulation and an improvement in the tourism terms of trade on outputs and factor prices.

3.1 Environmental regulation

In this subsection, we consider the effects of a stricter environmental regulation. A stricter environmental regulation means a reduction in emission permits in this regard ( \(dZ<0\) ).

From Eq. ( 17 ), we have

Since \({p}_{X}\) is unchanged, an increase in the skilled wage is balanced by a decrease in the rental rate of capital. Equation ( 26 ) implies \({\widehat{w}}_{S}-\widehat{q}={\widehat{w}}_{S}/{\theta }_{KX}\) . From Eq. ( 21 ), we have

This means that an increase in the output of traded good \(X\) raises the wage of skilled labor, which is a specific input to that sector.

Substituting Eqs. ( 26 ) and ( 27 ) into Eq. ( 20 ), we obtain

which states that an increase in the output of traded good reduces the output of tourism infrastructure by extracting capital input from that industry. Equations ( 26 )–( 28 ) show that \(\widehat{q}\) , \(\widehat{X}\) , and \(\widehat{M}\) are proportional to \({\widehat{w}}_{S}\) .

From Eqs. ( 22 ) and ( 23 ), we have

which implies that if the number of pollution permits is unchanged, \({\widehat{w}}_{L}=\widehat{r}\) holds.

Solving Eq. ( 25 ), we obtain (see Appendix A )

where \(\Delta \equiv {\sigma }_{T}[{\lambda }_{KX}{\sigma }_{X}(1-\xi )+{\lambda }_{KM}{\theta }_{SX}]>0\) . Footnote 13

The qualitative effects of a reduction in emissions are ambiguous and depend on the elasticity of substitution in the tourism sector \({\sigma }_{T}\) . From Eq. ( 30 ), a reduction in emissions decreases the production of the tourism service if and only if

We can immediately show that \(A<{\theta }_{LT}\) .

From Eq. ( 32 ), the necessary and sufficient condition for a reduction in emissions to decrease the wage of unskilled labor is

Using Eq. ( 33 ), a reduction in emission decreases the price of emission permits if and only if

Since \(\xi <1\) , \(C>{\theta }_{LT}\) holds.

It is straightforward to show that \(A>B\) since

where \(m\equiv \frac{{\lambda }_{KM}{\theta }_{SX}{\theta }_{ZT}}{{\lambda }_{KX}{\sigma }_{X}}>0\) .

Therefore, we have the following relationships in magnitude:

The above results are summarized in Table 1 , which shows how the comparative static results with respect to \(Z\) depend on \({\sigma }_{T}\) , with threshold values such as \(B\) , \(A\) , \({\theta }_{LT}\) , and \(C\) .

The intuition for the above results is as follows. When the elasticity of substitution in the tourism sector \({\sigma }_{T}\) is sufficiently low, a decrease in emission permits \(Z\) raises its price \(r\) significantly since pollution is hardly substituted by unskilled labor. Therefore, the revenue from selling emission permits \(rZ\) and the output of tourism infrastructure \(M\) increases (see Eq. ( 8 )). Footnote 14 If an increase in \(M\) is significant, the output of tourism industry \(T\) rises despite the reduction in emission permits \(Z\) . Consequently, the wage of unskilled labor, which is a specific factor into the tourism sector, increases. At the same time, capital flows from the manufacturing sector, leading to a decrease in the output of manufacturing good \(X\) . The decrease in the output of the manufacturing good reduces the wage of skilled labor, which is a specific factor into that industry. Since the price of the manufacturing good is constant, the decrease in the wage of skilled labor is balanced by the increase in the rental rate of capital (see Eq. ( 17 )).

When \({\sigma }_{T}\) is sufficiently high, the stricter environmental regulation decreases permit price \(r\) since the demand for emission permits is largely substituted by unskilled labor. Thus, the revenue from emission permits and the output of tourism infrastructure decrease. It follows that the output of the tourism service falls due to a decrease in both emission permits and positive externality of tourism infrastructure. Additionally, the wage of unskilled labor decreases despite the initial increase in demand. Meanwhile, capital flows from the tourism infrastructure sector to the manufacturing sector, leading to an increase in the output of the manufacturing sector. The increased output of the manufacturing good raises the wage of skilled labor due to an increase in demand.

Thus, we have the following proposition.

Proposition 1

Suppose that the tourism terms of trade \({p}_{T}\) are constant. When the elasticity of substitution in the tourism sector is sufficiently low, a stricter environmental regulation expands the tourism and tourism infrastructure sectors and contracts the manufacturing sector. This narrows the wage inequality between skilled and unskilled labor. The rental rate of capital and the price of emission permits rise. As the elasticity of substitution in the tourism sector increases, all the above results are reversed.

The effects on the output of the tourism service and the unskilled wage rate also depend on the positive externality of tourism infrastructure \(\xi\) . When \({\sigma }_{T}<{\theta }_{LT}\) , a stricter environmental regulation raises the output of tourism infrastructure \(M\) . If \(\xi\) is sufficiently high, the output of the tourism service significantly increases, and the wage of unskilled labor rises. In other words, the higher \(\xi\) is, the higher the possibility of an increase in the output of the tourism service and the unskilled wage rate. When \({\sigma }_{T}>{\theta }_{LT}\) , both the output of the tourism service and the unskilled wage rate unambiguously decrease since \({B<A<\theta }_{LT}<{\sigma }_{T}\) . In this case, the output of the tourism service falls due to a decrease in both pollution permits and positive externality of tourism infrastructure.

Similarly, the effect on the price of emission permits depends on \(\xi\) . When \({\sigma }_{T}>{\theta }_{LT}\) , the output of tourism infrastructure is decreased by the stricter environmental regulation. If \(\xi\) is sufficiently high, the drop in the output of the tourism service increases. Subsequently, the price of emission permits decreases since a decline in demand for emission permits outweighs the decrease in supply. When \({\sigma }_{T}<{\theta }_{LT}\) , the output of tourism infrastructure increases and the price of emission permits unambiguously rises because \({\sigma }_{T}<{\theta }_{LT}<C\) . This means that the decrease in the supply of emission permits increases the price of emission permits even when the output of the tourism service falls.

In particular, the case of \(\widehat{T}/\widehat{Z}<0\) (the stricter environmental regulation increases the output of the tourism service) is paradoxical in the usual sense because pollution emission is a specific input into the tourism industry, and we try to explain this result graphically. For this purpose, we introduce the production possibility curve or the transformation curve. The properties of the production possibility curve in our model are proved in Appendix B and summarized in the following proposition.

Proposition 2

The production possibility curve in our model is flatter (steeper) than the price line if and only if the marginal value product of tourism infrastructure is greater (lesser) than its price. The curve is strictly concave to the origin.

In the absence of the Lindahl pricing rule, the tangency property with respect to the production possibility curve does not necessarily hold. From Eq. ( 8 ), we obtain \({p}_{T}\frac{\partial T}{\partial M}-{p}_{M}={p}_{M}\left(\frac{\xi }{{\theta }_{ZT}}-1\right)\) . It follows that the Lindahl pricing requires \(\xi ={\theta }_{ZT}\) ; otherwise, the marginal value product of tourism infrastructure is greater (lesser) than its price if and only if \(\xi >(<){\theta }_{ZT}\) . In what follows, we focus on the case of \(\xi >{\theta }_{ZT}\) since the national government otherwise has no incentive to construct tourism infrastructure. The initial production possibility curve is depicted by curve ABC. See Figs. 1 and 2 . When \(Z\) is decreased, the curve shifts inward to AB’C’. At the same time, the price line shifts upward if the elasticity of substitution in the tourism sector is sufficiently low; otherwise, it shifts downward. Footnote 15 Accordingly, the production point moves from point B to B’, leading to a decrease in \(X\) and an increase in \(T\) . Figure 1 (Fig. 2 ) corresponds to the case where the stricter environmental regulation decreases (increases) total revenue.

The case of a stricter environmental regulation decreasing the total revenue

The case of a stricter environmental regulation increasing the total revenue

3.2 Improvement in the tourism terms of trade

In this subsection, we investigate the effects of an improvement in the tourism terms of trade \({p}_{T}\) . Note that Eqs. ( 26 ), ( 27 ), and ( 28 ) still hold. Substituting Eqs. ( 26 ) and ( 28 ) into Eq. ( 24 ), we obtain

Equation ( 29 ) implies \({\widehat{w}}_{L}/{\widehat{p}}_{T}=\widehat{r}/{\widehat{p}}_{T}\) .

Substituting Eq. ( 28 ) into Eq. ( 22 ) and considering \({\widehat{w}}_{L}/{\widehat{p}}_{T}-\widehat{r}/{\widehat{p}}_{T}=0\) from Eq. ( 29 ), we have

The effects of improvement in the tourism terms of trade on the price of emission permits and the wage of unskilled labor have magnification effects ( \(\widehat{r}/{\widehat{p}}_{T}={\widehat{w}}_{L}/{\widehat{p}}_{T}>1\) ). This result is different from that of Nakai et al. ( 2018 ), where pollution is a general input to both manufacturing and tourism industries, while unskilled labor is a specific input into the tourism sector. In Nakai et al. ( 2018 ), the effects of improvement in the tourism terms of trade have a magnification effect on the wages of unskilled labor ( \({\widehat{w}}_{L}/{\widehat{p}}_{T}>1\) ), and not on the price of emission permits ( \(\widehat{r}/{\widehat{p}}_{T}<1\) ).

Since we do not assume the Lindahl pricing rule, the traditional reciprocity relationship (i.e., \(\partial T/\partial Z=\partial r/\partial {p}_{T}\) ) does not necessarily hold. Footnote 16 Therefore, we have obtained an interesting result that the stricter environmental regulation may expand the tourism sector.

The effects of an increase in \({p}_{T}\) are summarized in Table 2 and proposition 3.

Proposition 3

An improvement in the tourism terms of trade expands the tourism and tourism infrastructure sectors, while it contracts the manufacturing sector. This narrows the wage inequality between skilled and unskilled labor. The rental rate of capital and the price of emission permits rise.

The intuition is straightforward. The improvement in the tourism terms of trade expands the tourism sector and, thus, the wage of unskilled labor and the price of emission permits rise. The revenue from selling pollution permits \(rZ\) and the output of tourism infrastructure increase at the expense of the manufacturing sector; this leads to a decrease in the wage of skilled labor. Since the price of the manufacturing good is unchanged, the rental rate of capital rises.

4 Total effect of the environmental regulation

4.1 the effects on the tourism terms of trade and welfare.

The previous sections treated the tourism terms of trade \({p}_{T}\) as a constant. However, \({p}_{T}\) is eventually determined by the market equilibrium condition of the domestic tourism service, that is, the supply of and demand for it. In this subsection, we consider the effects of the stricter environmental regulation, considering that \({p}_{T}\) is not a constant.

To determine the price of the tourism service, we need to introduce the demand side of the economy. Suppose that both domestic residents and foreign tourists consume the manufacturing good and the domestic tourism service. The demand side of the economy is represented by the expenditure function of domestic residents and the demand function of foreign tourists. The expenditure function is defined as Footnote 17

where \({C}_{X}\) is the consumption of the manufacturing good by domestic residents, \({C}_{T}\) the consumption of the domestic tourism service by domestic residents, and \(u\) the level of utility. \(a<0\) is a parameter. The utility function has the property that the marginal utility from the tourism service decreases with the amount of pollution. For the marginal utility of pollution to be negative ( \(\frac{\partial u}{\partial Z}<0\) ), we assume \({C}_{T}>1\) . The expenditure function is derived as follows:

Applying the envelope theorem, we obtain the compensated demand for the tourism service: \({E}_{T}\equiv \frac{\partial E}{\partial {p}_{T}}={C}_{T}={\left(\frac{{e}^{u}{Z}^{a}{p}_{X}}{{p}_{T}}\right)}^{\frac{1}{{1+Z}^{a}}}\) . The downward sloping demand function implies \({E}_{TT}\equiv {\partial }^{2}E/\partial {p}_{T}^{2}<0\) . \({E}_{Z}\equiv \frac{\partial E}{\partial Z}=-\frac{a{Z}^{a-1}E}{{(1+{Z}^{a})}^{2}}\text{ln}\left(\frac{{e}^{u}{Z}^{a}{p}_{X}}{{p}_{T}}\right)>0\) denotes the marginal damage to domestic residents caused by pollution. \({E}_{u}\equiv \frac{\partial E}{\partial u}>0\) represents the inverse of the marginal utility of income. The effect of the stricter environmental regulation on the compensated demand for the tourism service is given by

The first term indicates the effect that a decrease in pollution reduces the amount of compensated demand required to offset the disutility from pollution, while the second term indicates that the decrease in pollution raises the attractiveness of the tourism service. If the latter effect outweighs the former, the stricter environmental regulation increases the compensated demand for the tourism service. Footnote 18

Foreign tourists also consume the manufacturing good and the domestic tourism service. Their utility function is given by \({u}^{*}=\text{ln}{D}_{X}+{Z}^{\alpha }\text{ln}{D}_{T}\) , where \({D}_{X}\) is the consumption of the manufacturing good by foreign tourists, and \({D}_{T}\) is the consumption of the domestic tourism service by foreign tourists. \({\alpha }<0\) is a parameter. For the marginal utility of pollution to be negative, we assume \({D}_{T}>1\) . Foreign tourists’ demand for the domestic tourism service is derived as \({D}_{T}=\frac{{Z}^{\alpha }}{1+{Z}^{\alpha }}\frac{{Y}^{*}}{{p}_{T}}\) , where \({Y}^{*}\) is the budget of foreign tourists and is exogenously given. Note that \(\frac{{\partial D}_{T}}{\partial Z}<0\) because a decrease in pollution increases the attractiveness of the tourism service. Footnote 19

The supply side of the economy is characterized by the revenue function:

The usual envelope theorem does not necessarily hold as the Lindahl pricing rule is not assumed. The properties of the revenue function with a positive externality of the tourism infrastructure are given in Appendix C .

Now, we can derive the equilibrium conditions for both the demand and supply sides of the economy. First, the budget constraint of the economy is given by

which states that the total expenditure equals the total revenue.

Second, the market equilibrium condition of the tourism service is

Here, the LHS denotes the demand for the domestic tourism service, while the RHS is its supply.

The above two equations simultaneously determine the tourism terms of trade \({p}_{T}\) and domestic welfare \(u\) . We analyze the effects of the stricter environmental regulation on \({p}_{T}\) and \(u\) . Totally differentiating Eqs. ( 37 ) and ( 38 ), we obtain

where \(\Gamma \equiv {p}_{T}\frac{\partial T}{\partial M}-{p}_{M}\) is the difference between the marginal value product of tourism infrastructure and its shadow price, \({S}_{T}\equiv \partial T/\partial {p}_{T}-{E}_{TT}-\partial {D}_{T}/\partial {p}_{T}>0\) represents the slope of the excess supply function of the tourism service, and subscripts with respect to the expenditure function denote partial derivatives, for example, \({E}_{Tu}\equiv {\partial }^{2}E/\partial u\partial {p}_{T}\) . Note that \({E}_{Tu}>0\) is the income effect on the tourism service. Note also that \(\partial T/\partial {p}_{T}>0\) and \(\partial M/\partial {p}_{T}>0\) from the analysis in Sect.  3.2 . Let \({\Delta }^{*}\) be the determinant of the 2 \(\times\) 2 matrix on the LHS of Eq. ( 39 ). The stability condition then requires \({\Delta }^{*}>0\) . Footnote 20 Solving Eq. ( 39 ), we obtain

Emission reduction affects the tourism terms of trade and domestic welfare through the two conventional channels, as stated by Beladi et al. ( 2009 ) and Yanase ( 2017 ). On the one hand, if a pollution reduction decreases the domestic excess supply of the tourism service \((\frac{\partial }{\partial Z}\left(T-{D}_{T}-{E}_{T}\right)=\frac{\partial T}{\partial Z}-\frac{\partial {D}_{T}}{\partial Z}-{E}_{TZ}>0)\) , the price of the tourism service rises. These positive terms of trade effect improve domestic welfare. On the other hand, if the marginal damage of pollution to domestic residents is greater than the marginal cost of pollution emission ( \({E}_{Z}>r\) ), the pollution reduction increases the real income of domestic residents. This positive income effect improves the tourism terms of trade. In Eq. ( 40 ), an additional effect \((-{E}_{Tu}\Gamma \frac{\partial M}{\partial Z})\) exists. In the explanation below, we assume the following conditions: (1) \(\Gamma >0\) (the marginal value product of tourism infrastructure is greater than its price), (2) \(\partial M/\partial Z<0\) (the output of tourism infrastructure is increased by the stricter environmental regulation), and (3) \(\frac{\partial T}{\partial Z}-{E}_{TZ}-\frac{\partial {D}_{T}}{\partial Z}>0\) (the excess supply of the tourism service decreases with the stricter environmental regulation). The effect of the additional term can be explained as follows: a decrease in pollution raises tourism infrastructure, which in turn increases the total revenue and, thus, demand for the tourism service. Footnote 21

Next, we consider the effect on welfare. In addition to the two aforementioned conventional channels, there are two other effects. First, a decrease in the excess supply of tourism service raises the tourism terms of trade, which in turn increases tourism infrastructure ( \(\partial M/\partial {p}_{T}>0\) ). Thus, the total revenue and welfare of domestic residents increase. This effect is captured by the term \(\Gamma \frac{\partial M}{\partial {P}_{T}}(\frac{\partial T}{\partial Z}-{E}_{TZ}-\frac{\partial {D}_{T}}{\partial Z})\) . Second, an increase in tourism infrastructure directly raises total revenue and welfare. This effect is represented by the term ( \(-{S}_{T}\Gamma \frac{\partial M}{\partial Z}\) ). If conditions (1)–(3) are satisfied, both these effects increase domestic welfare. Note also that both the effects arise from the difference between the marginal value product of tourism infrastructure and its price (i.e., the term \(\Gamma\) ). We call the effects arising from \(\Gamma\) the \(\Gamma\) -channel. If conditions (1)–(3) are satisfied, the \(\Gamma\) -channel improves the tourism terms of trade and domestic welfare.

Thus, we can establish the following proposition.

Proposition 4

In addition to the two traditional channels, there is an additional channel arising from the difference between the marginal value product of tourism infrastructure and its price. The additional channel improves the tourism terms of trade and domestic welfare if the following three conditions are satisfied: (1) the marginal value product of tourism infrastructure is greater than its price, (2) the output of tourism infrastructure is increased by a stricter environmental regulation, and (3) the excess supply of a tourism service decreases with a stricter environmental regulation.

The first condition is likely to hold when the marginal value product of the tourism infrastructure is sufficiently high. The second condition is satisfied if and only if the elasticity of substitution in the tourism industry is sufficiently low to increase revenue from selling pollution permits. The third condition tends to hold when the output of the tourism service is decreased by the stricter environmental regulation, which occurs if the elasticity of substitution in that sector is not very low. Therefore, for both conditions (2) and (3) to hold simultaneously, the elasticity of substitution in the tourism sector must be a moderately small value. By numerical simulations in Appendix D , we show that there exist parameter values that satisfy the conditions from (1) to (3).

4.2 Effects on outputs and factor prices

In this subsection, we examine the effects of the stricter environmental regulation on outputs and factor prices, considering that the tourism terms of trade are endogenous. The total effect (including the change in tourism terms of trade) of the environmental regulation on each endogenous variable is

where \(\Theta =\text{X},T,M,{w}_{S},{w}_{L},q,r\) . The first term on the RHS represents the direct effect of the environmental regulation, while the second term represents the indirect effect that arises from the change in the tourism terms of trade. Since the sign of the direct effect is ambiguous, we consider the necessary and sufficient conditions for the indirect effect to be dominant. The indirect effect is proportional to the change in the tourism terms of trade and, thus, the indirect effect dominates the direct effect if the tourism terms of trade effect \(\left|\frac{Z}{{p}_{T}}\frac{d{p}_{T}}{dZ}\right|\) is sufficiently high.

Substituting Eqs. ( 31 ) and ( 36 ) into Eq. ( 42 ) for \(\Theta ={w}_{S}\) , the stricter environmental regulation decreases the wage of skilled labor if and only if

From Eqs. ( 26 ), ( 27 ), ( 28 ), and ( 42 ) the total effects on \(q\) , \(X\) , and \(M\) are proportional to those on \({w}_{S}\) .

Similarly, substituting Eqs. ( 30 ), ( 35 ), and ( 36 ) into Eq. ( 42 ) for \(\Theta =T\) , a decrease in pollution reduces the production of tourism service \(T\) if and only if

Substituting Eqs. ( 29 ), ( 32 ), ( 34 ), and ( 36 ) into Eq. ( 42 ) for \(\Theta ={w}_{L}\) , the necessary and sufficient condition for a decrease in pollution to reduce the wage of unskilled labor \({w}_{L}\) is

Finally, substituting Eqs. ( 33 ), ( 34 ), and ( 36 ) into Eq. ( 42 ) for \(\Theta =r\) , the amount of pollution and the price of emission permits \(r\) move in the same direction if and only if

By the straightforward calculation, we have \(H-D=\frac{1-\xi +m/{\theta }_{ZT}}{1+m/{\theta }_{ZT}}>0\) and \(H-G=\frac{1-\xi +m/{\theta }_{ZT}}{{\sigma }_{T}(1+m/{\theta }_{ZT})}>0\) . From this, it is easy to show that \(F<D<H\) . It follows that there are three cases to be considered: (1) when \({\sigma }_{T}<\frac{\xi }{{\theta }_{ZT}+m+\xi }\) , \(G<F<D<H\) ; (2) when \(\frac{\xi }{{\theta }_{ZT}+m+\xi }<{\sigma }_{T}<1\) , \(F<G<D<H\) ; and (3) when \({\sigma }_{T}>1\) , \(F<D<G<H\) . The results are summarized in Tables 3 , 4 and 5 . Footnote 22

The above results are summarized by the following proposition.

Proposition 5

When \(\frac{Z}{{p}_{T}}\frac{d{p}_{T}}{dZ}<min (F,G)\) , a stricter environmental regulation expands the tourism and tourism infrastructure sectors while it contracts the manufacturing sector. It narrows the wage inequality between skilled and unskilled labor. The rental rate of capital and the price of emission permits rise. If \(\frac{Z}{{p}_{T}}\frac{d{p}_{T}}{dZ}>H\) , all the above results are reversed.

Focusing on the total effect on domestic wage inequality, we have the following proposition.

Proposition 6

When \(\frac{Z}{{p}_{T}}\frac{d{p}_{T}}{dZ}\le min (D,G)\) , a stricter environmental regulation unambiguously narrows domestic wage inequality. However, if \(\frac{Z}{{p}_{T}}\frac{d{p}_{T}}{dZ}\ge max (D,G)\) , there is a trade-off between reducing pollution and narrowing wage inequality.

If the tourism terms of trade improve significantly, a stricter environmental regulation can provide a further benefit in improving domestic welfare. Footnote 23 This result is consistent with those of Chao et al. ( 2012 ) and Nakai et al. ( 2018 ).

When the production function of the tourism sector is Cobb–Douglas (i.e., \({\sigma }_{T}=1\) ), the above analysis becomes quite simple (see Appendix E ). In this case, at constant tourism terms of trade, the effect of the stricter environmental regulation on the price of pollution permits is ambiguous. However, the revenue from pollution permits \(rZ\) unambiguously declines, leading to a decrease in the output of tourism infrastructure. This results in a decline in the output of the tourism service and the wage of unskilled labor. At the same time, capital flows from the tourism infrastructure sector to the traded good sector. It follows that the output of the traded good and the wage of skilled labor rise.

5 Conclusions

This study sets up a small open developing tourism economy with tourism infrastructure and examines the welfare, production, and income distribution effects of a stricter environmental policy. The tourism sector generates pollution in the sense that it requires pollution as an input. Since the Lindahl pricing rule is not assumed, the usual envelope theorem and reciprocity relationship do not necessarily hold. Thus, we can obtain interesting comparative static results. If the elasticity of substitution in the tourism sector is sufficiently low, a stricter environmental regulation paradoxically expands the tourism sector even under the constant tourism terms of trade. At the same time, the wage inequality between skilled and unskilled labor narrows.

This study provides new insights regarding welfare concerns. In addition to the two conventional channels pointed out by Beladi et al. ( 2009 ) and Yanase ( 2017 ), this study contains an additional channel through which a stricter environmental regulation affects the tourism terms of trade and domestic welfare. Furthermore, the new channel, which arises from the difference between the marginal value product of tourism infrastructure and its price, increases the tourism terms of trade and domestic welfare if (1) the marginal value product of tourism infrastructure is greater than its price, (2) the output of tourism infrastructure is increased by a stricter environmental regulation, and (3) the excess supply of a tourism service decreases with a stricter environmental regulation.

Before closing this paper, we will state some topics for future research. In this study, we have considered that tourism infrastructure only enhances the productivity of the tourism industry and includes no congestion effect. However, some tourism infrastructures such as airports and highways contribute to several industries and include the congestion effect, where an increase in users lowers efficiency. Thus, it is important to consider this type of infrastructure. If the infrastructure contributes to almost all industries in the economy, the national government can finance the cost of infrastructure by taxing the income of residents in the economy.

We assume that the tourism industry is under perfect competition. It will be interesting to consider another market structure, for example, duopoly or monopolistic competition cases. Footnote 24 , Footnote 25

We have considered only environmental regulation as the national government’s policy instrument. It may be possible to consider an optimal policy mix of environmental regulation and import tariff, as in Chao et al. ( 2008 ) and Yanase ( 2017 ).

In this study, pollution is emitted from the production of the tourism service. However, if pollution is generated from consumption, the corresponding environmental policy may be a consumption tax or license fee to enter a tourist spot. The analysis of consumption tax or license fee would yield new results. All these issues are left for future research.

Code availability

Numerical Simulations utilize MATLAB R2021a.

Availability of data and material

The data that support the findings of this study are available on the website of the Japan Fair Trade Commission. See Japan Fair Trade Commission ( 2016 ).

In Japan, especially in Kyoto, an excessive tourism boom has caused over-tourism, bringing serious damages to the local community. However, this congestion phenomenon was suddenly terminated with the outbreak of the COVID-19 pandemic. Since July 2020, the Japanese government started "Go to travel campaign," subsidizing the tourism-related industries. This is expected to increase the number of domestic tourists. In addition, we hope that we will be able to overcome those negative effects of the COVID-19 pandemic after a period of time as in the case of the other pandemics in the past such as Spanish flu and Soviet flu. We also believe that there will be rapid growth in inbound tourism as a repercussion of immigration control. Thus, negative aspects of the tourism boom are still worth considering.

For an analysis of the environmental problem in developing countries where international capital flows from developed countries increase domestic pollution, see Beladi et al. ( 2000 ).

We treat low- and middle-income countries as developing countries.

According to Aynalem et al. ( 2016 , p. 3) and UNWTO ( 2014 , p. 28), the tourism employment is characterized by the following factors: (1) seasonality, (2) part-time and/or excessive hours of work, (3) low-paid (or unpaid) family labor, and (4) informal or sometimes illegal labor where measurement is notably more difficult.

Since the pollution tax provides a double dividend in reducing the amount of pollution and improving the tourism terms of trade, the optimal pollution tax rate exceeds the Pigouvian level in the case of exogenous tourism where the spending of foreign tourists is treated as a constant.

For an approach treating emission as an input into production, see Beladi et al. ( 2013 ), Copeland and Taylor ( 2003 ), Ishikawa and Kiyono ( 2006 ), and Oladi and Beladi ( 2015 ).

Okamoto ( 1985 ) assumed the Lindahl pricing in a general equilibrium model with public intermediate good. In his model, the tangency property holds.

Even if the tourism sector industry requires both capital and skilled labor, the main results do not change as long as the manufacturing sector is skilled labor intensive relative to the tourism infrastructure sector.

Yanase ( 2015 ) made the same assumption.

Since cost minimization is required in tourism infrastructure sector, cost equals revenue.

The price of tourism service p T is to be determined by the demand and supply of domestic tourism service in Sect.  4 . This approach is adopted by Chao et al. ( 2010 ).

Note that \({w}_{L}d{a}_{LN}+rd{a}_{ZN}=0\) holds by the cost minimization in the tourism sector since each firm in that sector does not take into account the positive externality of tourism infrastructure, where \({a}_{LN}\equiv g\cdot {a}_{LT}\) and \({a}_{ZN}\equiv g\cdot {a}_{ZT}\) are input coefficients of the tourism industry in the absence of tourism infrastructure.

From the assumptions \(g^{\prime\prime} <0\) and \(g(0)=1\) , we have \(\xi <1\) .

From Eq. ( 33 ), we have \(\widehat{r}+\widehat{Z}=\frac{({\sigma }_{T}-{\theta }_{LT})({\lambda }_{KM}{\theta }_{SX}+{\lambda }_{KX}{\sigma }_{X})}{\Delta }\widehat{Z}\) . Therefore, if \({\sigma }_{T}\) is less than \({\theta }_{LT}\) , a reduction in emission raises the revenue from selling emission permits \(rZ\) .

The total revenue \(R\) is given by \(R={p}_{X}X+{p}_{T}T\) , which is depicted by the price line in the ( \(T,X\) ) plane. The slope of the price line is equal to \({-p}_{T}/{p}_{X}\) . An increase (A decrease) in \(R\) shifts upward (downward) the price line. See Figs. 1 and 2 . The change in total revenue due to the stricter environmental regulation is \(\frac{\partial R}{\partial Z}\equiv {R}_{Z}=r+{p}_{M}\left(\frac{\xi }{{\theta }_{ZT}}-1\right)\frac{\partial M}{\partial Z}\) (See Eq. ( C.3 ) of Appendix C ). The first term is positive while the second is negative (recall that \({p}_{M}\left(\frac{\xi }{{\theta }_{ZT}}-1\right)>0\) and \(\frac{\partial M}{\partial Z}<0\) ). Note that the lesser the elasticity of substitution in the tourism sector \({\sigma }_{T}\) , the greater the absolute value of \(\frac{\partial M}{\partial Z}\) .

In the presence of the Lindahl pricing rule ( \({p}_{T}\frac{\partial T}{\partial M}={p}_{M}\) ), the usual tangency property ( \(\frac{\partial R}{\partial {p}_{T}}=T\) and \(\frac{\partial R}{\partial Z}=r\) ) always holds (see Appendix C ), where \(R\) —the total revenue—is also the revenue function (to be defined in Sect.  4.1 ). By applying the Young’s theorem to the revenue function, we obtain the reciprocity relationship: \(\frac{\partial T}{\partial Z}=\frac{{\partial }^{2}R}{\partial Z\partial {p}_{T}}=\frac{{\partial }^{2}R}{\partial {p}_{T}\partial Z}=\frac{\partial r}{\partial {p}_{T}}\) . However, if \({p}_{T}\frac{\partial T}{\partial M}\ne {p}_{M}\) , the reciprocity relationship does not hold except in the special case of \({\sigma }_{T}=1\) (see Appendix E ).

This specification of the utility function is suggested by Noritsugu Nakanishi.

Beladi et al. ( 2009 ) and Chao et al. ( 2008 ) assume a multiplicative utility function \(U({C}_{X},{C}_{T},Z)=v({C}_{X},{C}_{T})/h(Z)\) while Chao et al. ( 2012 ) and Chao and Sgro ( 2013 ) adopt an additively separable utility function \(U\left({C}_{X},{C}_{T},Z\right)=v\left({C}_{X},{C}_{T}\right)-h(Z)\) , where \({h}^{^{\prime}}\left(Z\right)>0\) . If \(v\left({C}_{X},{C}_{T}\right)\) is a Cobb–Douglas function, the compensated demand for the tourism service unambiguously increases with the amount of pollution, that is, \({E}_{TZ}>0\) . See Yanase ( 2017 , note 15).

If the foreign tourists' utility function is a multiplicative form \({U}^{*}({D}_{X},{D}_{T},Z)={v}^{*}({D}_{X},{D}_{T})/{h}^{*}(Z)\) or an additively separable form \({U}^{*}\left({D}_{X},{D}_{T},Z\right)={v}^{*}\left({D}_{X},{D}_{T}\right)-{h}^{*}(Z)\) , where \({v}^{*}({D}_{X},{D}_{T})\) is an increasing and strictly quasi-concave function and \(h^{*\prime } \left( Z \right) > 0\) , the ordinary demand function does not depend on the amount of pollution. This is because the marginal rate of substitution in consumption does not depend on the amount of pollution.

Let \(\Omega \equiv {E}_{T}+{D}_{T}-T\) be the domestic excess demand for tourism service. From Eqs. ( 37 ) and ( 38 ), we have \(d{p}_{T}/d\Omega =-{E}_{u}/{\Delta }^{*}\) . Hence, the stability of tourism service market requires \({\Delta }^{*}>0\) .

Note that the change in total revenue is given by \(dR=Xd{p}_{X}+Td{p}_{T}+{w}_{S}dS+{w}_{L}dL+rdZ+qdK+\Gamma dM\) . See Appendix C .

Straight calculation shows that \(G-F>0\leftrightarrow {\sigma }_{T}>\frac{\xi }{{\theta }_{ZT}+m+\xi }(>A)\) and \(D-G>0\leftrightarrow {\sigma }_{T}<1\) .

Differentiating Eq. ( 37 ) and substituting Eq. ( 38 ), we obtain \({E}_{u}du=\left({D}_{T}+\Gamma \frac{\partial M}{\partial {P}_{T}}\right)\text{d}{p}_{T}-({E}_{Z}-r-\Gamma \frac{\partial M}{\partial Z})\text{d}Z\) . It follows that, ceteris paribus , an improvement in tourism terms of trade raises domestic welfare.

Chao et al. ( 2012 ) assumed that tourism industry is under oligopoly.

Some tourism industries (e.g., hotel and travel agency business) consist of many agents (see Japan Fair Trade Commission ( 2016 )). Therefore, it is reasonable to consider tourism industry to be under perfect competition or monopolistic competition.

We have used Eqs. ( 3 ) and ( 4 ).

We have used Eqs. ( 16 ), ( 17 ), ( 20 ), ( 21 ) and ( 24 ). Also note that \({\widehat{w}}_{L}=\widehat{r}\) from Eq. ( 29 ). Substituting \({\widehat{w}}_{L}=\widehat{r}\) into Eq. ( 22 ) yields \(\widehat{M}=\widehat{T}/\xi\) .

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Acknowledgements

This is a substantially revised and updated version of the paper previously entitled “Tourism infrastructure, the environment, and international trade”. We are grateful to Muneyuki Saito; Shigemi Yabuuchi; and participants at the Kansai branch meeting of the Japan Society of International Economics (JSIE), Kobe International Economic Studies (KIES), and the 78th annual meeting of the JSIE for their helpful comments and suggestions. We also would like to thank Editage (www.editage.com) for English language editing. All remaining errors are ours.

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Appendix A. Derivation of Eqs. ( 30 )–( 33 ), and ( 36 )

Let \(\Delta\) be the determinant of the 7 × 7 matrix on the LHS of Eq. ( 25 ):

Add the fourth column to the sixth column and then the fifth column to the seventh column to obtain

Subtract the fifth row from the sixth row to obtain

Expand by the second column to obtain

Expand by the fifth row to obtain

Add the second row to the fifth row to obtain

Expand by the fifth column to obtain

Multiply the third row by \({\lambda }_{KX}\) and then subtract from the second row to obtain

Expand by the first column to obtain

By the Cramer’s rule, the numerator of \(\widehat{T}/\widehat{Z}\) is

Similarly, the numerator of \({\widehat{w}}_{S}/\widehat{Z}\) is

The numerator of \({\widehat{w}}_{L}/\widehat{Z}\) is

The numerator of \(\widehat{r}/\widehat{Z}\) is

The numerator of \({\widehat{w}}_{S}/{\widehat{p}}_{T}\) is

Appendix B. Shape of the production possibility curve

The first-order conditions for profit maximization in manufacturing sector are

Similarly, the first-order conditions for profit maximization in the tourism sector are

Therefore, we have Footnote 26

where \(\Gamma \equiv {p}_{T}\frac{\partial T}{\partial M}-{p}_{M}\) is the difference between the marginal value product of tourism infrastructure and its price. Using the budget constraint of the government (8), we can rewrite \(\Gamma ={p}_{M}\left(\frac{\xi }{{\theta }_{ZT}}-1\right)\) . Keeping the factor endowments unchanged, the slope of the production possibility curve is given by

where we have used Eq. ( 8 ) and \(\frac{dM}{dT}=\frac{\widehat{M}}{\widehat{T}}\frac{M}{T}=\frac{M}{T\xi }\) from Eqs. ( 22 ) and ( 29 ). Equation ( B.6 ) implies that the production possibility curve is flatter than the price line if and only if \(\Gamma >0\) (i.e., \(\xi >{\theta }_{ZT}\) ).

The absolute value of the slope of the production possibility curve is rewritten as

where the rate of change of the RHS is given by Footnote 27

Therefore, we can conclude that \({\text{d}}^{2}X/\text{d}{T}^{2}<0\) . It follows that the production possibility curve is strictly concave to the origin.

Appendix C. Properties of the revenue function

The total revenue is defined as

Considering Eq. ( B.5 ), the change in the total revenue is given by

The last term in Eq. ( C.1 ) implies that an increase in tourism infrastructure raises the total revenue \(R\) if and only if the marginal value product of tourism infrastructure is larger than its price (i.e., \({p}_{T}\frac{\partial T}{\partial M}>{p}_{M}\) ).

From Eq. ( C.1 ), we obtain

Thus, the envelope theorem holds if \(\Gamma =0\) .

Appendix D. Numerical simulations

Since conditions (2) and (3) in Proposition 4 .1 seem to be inconsistent with each other, we resort to numerical simulations to find out a set of parameter values that satisfy the conditions from (1) to (3). Numerical Simulations utilize MATLAB R2021a.

For this purpose, we specify the production function. Suppose that the production function of the traded good is a Cobb–Douglas function

where \({A}_{X}\) denotes the productivity parameter for the traded good sector, and \(\updelta \in (\text{0,1})\) is the factor cost share of skilled labor. Thus, we have \({\theta }_{SX}=\updelta\) and \({\theta }_{KX}=1-\updelta\) . The associated unit cost is then given by \(\frac{{({w}_{S})}^{\delta }{q}^{1-\delta }}{{{A}_{X}\delta }^{\delta }{(1-\delta )}^{1-\delta }}\) .

The production function of the tourism service is assumed to be the constant elasticity of substitution (CES) function:

where \(\gamma \in (\text{0,1})\) and \(\rho \ge -1\) are parameters. It is well known that the elasticity of substitution is \({\sigma }_{T}=1/(1+\rho )\) . We specify \({g\left(M\right)=M}^{\xi }\) , where \(\xi \in (\text{0,1})\) is a constant.

From Eqs. ( 6 ) and ( 7 ), we obtain

Substituting Eqs. ( 7 ) and ( D.3 ) into Eq. ( D.2 ), we obtain

The cost minimization in the tourism sector yields

Substituting Eqs. ( D.3 )–( D.5 ) into Eq. ( 2 ) yields

Substituting Eq. ( D.4 ) into Eq. ( 7 ), we obtain

Substituting Eq. ( 3 ) into Eq. ( 8 ), we have

The zero-profit condition for the traded good industry (1) is rewritten as

Substituting Eq. ( D.9 ) and taking into account that the factor cost share of capital in the traded good sector is \(1-\delta\) , the full employment condition of capital (4) can be rewritten as

Considering that the factor cost share of skilled labor in the traded good sector is \(\delta\) , the demand–supply equality of skilled labor (5) becomes

The utility function of domestic residents is specified as

For the marginal utility of pollution to be negative, we assumed \({C}_{T}>1\) . The utility maximization yields

Suppose that the utility function of foreign tourists is given by

Similarly, we assumed \({D}_{T}>1\) . The tourists’ ordinary demand function for the tourism service is derived as

The market-clearing condition for the tourism service is given by

The budget constraint of the economy is

Equations ( D.6 )–( D.15 ) determine \(X\) , \(T\) , \({w}_{S}\) , \(q\) , \(r\) , \(M\) , \({p}_{T}\) , \({C}_{X}\) , \({C}_{T}\) , and \({D}_{T}\) . We set the parameter values as follows: \({A}_{X}=1\) , \({p}_{X}=1\) , \(\delta =\gamma =0.6\) , \(\xi =0.8\) , \(\rho =3\) , \(L=3\) , \(S=1\) , \(K=25\) , \({a}_{KM}=2\) , \({Y}^{*}=4\) , and \(Z=2.5\) . The elasticity of substitution in the tourism sector is \({\sigma }_{T}=1/(1+\rho )=0.25\) . The factor cost share of emission permits in the tourism sector is calculated as \({\theta }_{ZT}=\frac{1}{\frac{\gamma }{1-\gamma }{\left(\frac{Z}{L}\right)}^{\rho }+1}=0.5353\) . Since \(\xi >{\theta }_{ZT}\) , condition (1) is satisfied. By the definition, \({\theta }_{LT}=1-{\theta }_{ZT}=0.4647\) . Then, \({\sigma }_{T}<{\theta }_{LT}\) , implying that condition (2) holds. Finally, \(\frac{\partial }{\partial Z}\left(T-{C}_{T}-{D}_{T}\right)=1.343>0\) . Therefore, condition (3) holds.

Appendix E. The case where the production function of tourism sector is Cobb–Douglas

When the production function of the tourism industry is Cobb–Douglas, that is, \({\sigma }_{T}=1\) , the comparative static results in Sect.  3.1 , where the tourism terms of trade are fixed, are simplified as

From Eqs. ( 18 ) and ( 22 ), we obtain \(\frac{\widehat{T}}{\widehat{Z}}=\frac{{\widehat{w}}_{L}}{\widehat{Z}}\) . Note also that from Eqs. ( 34 ), ( 36 ), and ( E.1 ), the reciprocity relationship ( \(\partial T/\partial Z=\partial r/\partial {p}_{T}\) ) holds in this case.

6.1 The total effect

Now, we consider the total effect of a stricter environmental regulation, taking into account the indirect effect induced by the change in the tourism terms of trade. Letting \({\sigma }_{T}\) be unity in Eq. ( 43 ), the necessary and sufficient condition for a reduction in pollution to decrease the wage of skilled labor is

Recall that from Eqs. ( 26 )–( 28 ), the total effects on \(q\) , \(X\) , and \(M\) are proportional to those on \({w}_{S}\) .

Similarly, from Eq. ( 44 ), the stricter environmental regulation contracts the tourism industry if and only if

From Eq. ( 45 ), the necessary and sufficient condition for decreasing pollution to increase the wage of unskilled labor down is

From Eq. ( 46 ), the amount of pollution and the price of emission permits move in the same direction if and only if

It is straightforward to show that \(F^{\prime} < - \theta_{ZT} < H^{\prime}\) .

Therefore, when the production function of the tourism sector is Cobb–Douglas, Tables 3 , 4 and 5 are simplified as shown in Table

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Shimizu, T., Okamoto, H. Tourism infrastructure and the environment: how does environmental regulation affect welfare, tourism industry, and domestic wage inequality?. JER (2022). https://doi.org/10.1007/s42973-021-00109-4

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Received : 11 December 2020

Revised : 27 September 2021

Accepted : 24 November 2021

Published : 07 January 2022

DOI : https://doi.org/10.1007/s42973-021-00109-4

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Email: [email protected]

Translations

News release, media contacts, ministry of tourism, arts, culture and sport.

• Visit Ministry Website

Featured Topics

• Tourism Resources
• Arts and Culture
• Multiculturalism & Anti-Racism
• BC Athletic Commissioner

Featured Services

• DestinationBC
• Indigenous Tourism BC
• BC Arts Council

Thirty-one new infrastructure tourism projects will help enhance visitor experiences and create vibrant communities throughout the province.

“British Columbia is a world-class destination and tourism is one of the province’s greatest economic drivers,” said Lana Popham, Minister of Tourism, Arts, Culture and Sport. “The past three years have been incredibly challenging for people in the tourism industry, especially after years of economic uncertainty and extreme weather events like the recent wildfires. Investing in tourism infrastructure supports the tourism sector, the people who work in it, and is helping to create vibrant communities for all British Columbians and visitors.”

The Destination Development Fund supports tourism businesses by developing and rejuvenating tourism infrastructure. The 31 new recipients will receive nearly $15 million in 2023-24 with one-time grants.

Since 2021, more than $60 million has been provided through the Destination Development Fund helping rebuild tourism revenues to 2019 levels and strengthening a year-round visitor economy for people in B.C and for those who work in the tourism sector.

Projects were chosen for their contribution to communities, benefits to the tourism economy, and support for sustainability and accessibility. Project examples include new and expanded tourism attractions like the Bulkley Valley Cross Country Ski Club’s interpretive signage and groomer equipment; the expansion of the E.J. Hughes and Quw’utsun Galleries and new Kinsol Trestle Interpretation Centre at the Shawnigan Lake Museum; and the Sointula Resource Centre Society’s revitalized free bike program to include e-bike rentals.

The Province is also supporting the sector with $3 million through the B.C. Tourism Climate Resiliency Initiative. This will support education, assessments, expert coaching, action planning and adaptation to help tourism businesses and communities measure, track and improve sustainable and environmentally responsible practices in their operations.

Led by Destination BC, the initiative will develop climate preparedness and adaptation strategies and action plans to mitigate climate risks, as well as provide a foundation for a long-term sustainability and climate-adaptation approach for people in the B.C. tourism sector.

"The new B.C. Tourism Climate Resiliency Initiative provides a tremendous opportunity to bolster our tourism sector's resilience, preserving natural spaces and making it well-equipped to face and adapt to climate change,” said Richard Porges, president and CEO, Destination BC. “Collectively, the tourism industry has a strong commitment to sustainability and aiding communities and visitors in their readiness for climate-related impacts. This new initiative will pave the way for climate preparedness and adaptation, positioning the tourism industry to proactively mitigate evolving climate risks.”

The B.C. Tourism Climate Resiliency Initiative also supports the preservation of B.C.’s natural spaces, responsible travel and advancing reconciliation with Indigenous Peoples.

Erik Blaney, executive council, Tla’amin Nation –

“The Desolation Sound Archaeology Project will survey cultural sites in Desolation Sound Park to identify previously undocumented archeological sites and legally record them. This marks a major shift away from ongoing heritage destruction that has been unchecked for a century. This study will redefine and shift perceptions of ancient cultural landscapes and provide a foundation for sustainable tourism that will protect the surviving Tla’amin cultural heritage in the park, while also educating the public on how to be a good guest in Tla’amin territory.”

Lori Treloar, executive director, Shawnigan Lake Historical Society –

“The Shawnigan Lake Museum has been around for almost 50 years, and since then, both the stories and collections have grown. This grant offers us the opportunity to truly showcase local and beloved artist E.J. Hughes, the Kinsol Trestle and other important histories in new exhibits and increase museum amenities so that we can share our amazing history with more visitors, bringing increased economic benefits to Shawnigan Village.”

Quick Facts:

• The Province has invested $60 million in the Destination Development Fund since 2021.
• In the first year of the Destination Development Fund, the Province supported 90 projects throughout the province.
• The B.C. Tourism Climate Resiliency Initiative supports the Province’s CleanBC Plan and the Climate Preparedness and Adaptation Strategy.
• The B.C. Tourism Climate Resiliency Initiative also builds on the BC Tourism Sustainability Network, a free tourism sustainability program, led by the BC Regional Tourism Secretariat, which has helped more than 160 tourism businesses incorporate sustainability into their operations.

Learn More:

For more information on Destination Development approved projects, visit: https://news.gov.bc.ca/files/DestinationGrants.pdf

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The B.C. Public Service acknowledges the territories of First Nations around B.C. and is grateful to carry out our work on these lands. We acknowledge the rights, interests, priorities, and concerns of all Indigenous Peoples - First Nations, Métis, and Inuit - respecting and acknowledging their distinct cultures, histories, rights, laws, and governments.

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System Dynamics framework for tourism development management

2021, Current Issues in Tourism

Tourism management requires an understanding of the structures that govern the behaviour of the Tourism system and its development. Despite the strong growth of this activity in recent decades, studies in this regard are still below needs. In this context, the purpose of this paper was to investigate the cause–effect relationships between variables related to Tourism development using the System Dynamics technique. A bibliographic research was carried out to provide empirical evidence for the construction of the model. The result presented is a Causal Loop Diagram composed of seven units in dynamic interaction: tourists, natural and cultural resources, attractions (attractiveness), infrastructure and superstructure, Tourism services and equipment, Tourism demand (market) and competitive rivalry (market). The microenvironment and macroenvironment of the system were also highlighted. The results show that the pattern of Tourism Development Dynamics, with two dominant loops conjugated in negative feedback, follows the behaviour of an S-Shaped Curve. However, this behaviour can be altered by the influence of infrastructure and superstructure on natural and cultural resources.

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The SAGE International Encyclopedia of Travel and Tourism

• Edited by: Linda L. Lowry
• Publisher: SAGE Publications, Inc
• Publication year: 2017
• Online pub date: July 03, 2017
• Discipline: Business & Management
• Subject: Hospitality, Travel & Tourism Management
• DOI: https:// doi. org/10.4135/9781483368924
• Keywords: agritourism , airlines , airports , passengers , tourism , tourism sector , travel Show all Show less
• Print ISBN: 9781483368948
• Online ISBN: 9781483368924
• Buy the book icon link

Reader's guide

Entries a-z, subject index.

Taking a global and multidisciplinary approach, The SAGE International Encyclopedia of Travel and Tourism brings together a team of international scholars to examine the travel and tourism industry, which is expected to grow at an annual rate of four percent for the next decade. In more than 500 entries spanning four comprehensive volumes, the Encyclopedia examines the business of tourism around the world paying particular attention to the social, economic, environmental, and policy issues at play. The book examines global, regional, national, and local issues including transportation, infrastructure, the environment, and business promotion. By looking at travel trends and countries large and small, the Encyclopedia analyses a wide variety of challenges and opportunities facing the industry. In taking a comprehensive and global approach, the Encyclopedia approaches the field of travel and tourism through the numerous disciplines it reaches, including the traditional tourism administration curriculum within schools of business and management, economics, public policy, as well as social science disciplines such as the anthropology and sociology. Key features include: • More than 500 entries authored and signed by key academics in the field • Entries on individual countries that details the health of the tourism industry, policy and planning approaches, promotion efforts, and primary tourism draws. Additional entries look at major cities and popular destinations • Coverage of travel trends such as culinary tourism, wine tourism, agritourism, ecotourism, geotourism, slow tourism, heritage and cultural-based tourism, sustainable tourism, and recreation-based tourism • Cross-references and further readings • A Reader’s Guide grouping articles by disciplinary areas and broad themes

Front Matter

• List of Entries
• Reader’s Guide
• About the Editor
• Contributors
• Introduction

Reader’s Guide

• Advertising and Marketing
• Big Data and Tourism
• Brand Management
• Channels of Distribution
• Communication Networks
• Customer Service in Service Businesses
• Demand Side Tourism Sectors
• Duty-Free Sales
• Early Bird Discounts
• Elements of a Marketing Plan in Travel and Tourism
• Familiarization (FAM) Trip
• Loyalty Schemes
• Market Segmentation
• National Tourism Offices
• New Trends in Travel Marketing
• Place-Branding in Tourism
• Psychology of Travel
• Social Media and Networking
• Travel and Tourism Research Journals
• Travel Blogs
• Travel Guides
• Travel Technology
• Travel Writers
• Weather and Seasonal Pricing
• Acculturation
• Agritourism
• Airport Art and Uniqueness of Place
• Anthropology of Tourism
• Architecture and Tourism
• Authenticity
• Commodification of Culture
• Culinary Tourism
• Cultural Tourism
• Culture Shock
• Demonstration Effect
• Educational Tourism
• Ethnic Tourism
• Farm Tourism
• Flight Attendants: History and Culture
• Geography of Light and Landscape in Travel
• Heritage Tourism
• Historic Houses Association
• History of Travel and Tourism
• Homestay Tourism
• Hosts and Guests
• Indigenous Tourism
• International Student Travel
• International Tourism
• Language of Tourism
• Leisure Travel, Sociology of
• Local Handicrafts
• National Trust for Historic Preservation
• Religion and Tourism
• Religious Tourism
• Rural Planning and Development for Tourism
• Rural Tourism
• Shopping and Tourism
• Sightseeing
• Sociocultural Issues Related to Tourism
• Souvenirs and Tourism
• Tourism and the Arts
• Visiting Family and Friends Tourism
• Wine Tourism
• Wine Tourism, New World Wines, Australia/New Zealand
• Wine Tourism, New World Wines, China
• Wine Tourism, New World Wines, South Africa
• Wine Tourism, New World Wines, South America
• Wine Tourism, New World Wines, U.S.
• Wine Tourism, Old World Wines, Europe
• Wonders of the World, Old and New
• World Heritage Sites
• Abu Dhabi, United Arab Emirates
• Afghanistan
• Amman, Jordan
• Amsterdam, The Netherlands
• Antalya, Turkey
• Antigua and Barbuda
• Auckland, New Zealand
• Bahamas, The
• Baku, Azerbaijan
• Bangkok, Thailand
• Barcelona, Spain
• Beijing, China
• Berlin, Germany
• Bosnia and Herzegovina
• Brunei Darussalam
• Budapest, Hungary
• Buenos Aires, Argentina
• Burgas, Bulgaria
• Burkina Faso
• Cairo, Egypt
• Cancún, Mexico
• Chiang Mai, Thailand
• Christchurch, New Zealand
• Congo, Democratic Republic of the
• Doha, Qatar
• Dominican Republic
• Dubai, United Arab Emirates
• Dublin, Ireland
• Eastern Province, Saudi Arabia
• Edirne, Turkey
• El Salvador
• Frankfurt, Germany
• Gambia, The
• Guangzhou, China
• Hanoi, Vietnam
• Honolulu, United States
• Istanbul, Turkey
• Jakarta, Indonesia
• Johannesburg, South Africa
• Kiev, Ukraine
• Kuala Lumpur, Malaysia
• Liechtenstein
• Lisbon, Portugal
• London, United Kingdom
• Madrid, Spain
• Manama, Bahrain
• Manila, Philippines
• Marrakech, Morocco
• Mecca, Saudi Arabia
• Melbourne, Australia
• Mexico City, Mexico
• Miami, United States
• Milan, Italy
• Moscow, Russia
• Mumbai, India
• Munich, Germany
• Netherlands, The
• New York City, United States
• New Zealand
• Niagara Falls
• Nice, France
• Orlando, United States
• Papua New Guinea
• Paris, France
• Pattaya, Thailand
• Philippines
• Phuket, Thailand
• Punta Cana, Dominican Republic
• Rio de Janeiro, Brazil
• Riyadh, Saudi Arabia
• Saint Kitts and Nevis
• Saint Lucia
• Saint Petersburg, Russia
• Saint Vincent and the Grenadines
• Saudi Arabia
• Seoul, South Korea
• Serbia and Montenegro
• Shanghai, China
• Shenzhen, China
• Sierra Leone
• Sofia, Bulgaria
• Solomon Islands
• Sousse, Tunisia
• South Africa
• Switzerland
• Taipei, Taiwan
• Timor-Leste
• Tokyo, Japan
• Trinidad and Tobago
• United Arab Emirates
• United Kingdom
• Vancouver, Canada
• Vienna, Austria
• Warsaw, Poland
• Alternative Tourism
• Balance of Payments
• BRICS Countries
• Brundtland Report
• Carbon Offsets
• Carrying Capacity: Environmental
• Carrying Capacity: Physical
• Carrying Capacity: Sociocultural
• Climate Change
• Cost-Benefit Analysis
• Earth Summit
• Economics of Tourism
• Environmental Impacts of Tourism
• Environmental Impacts of Travel
• Environmental Policies
• Exchange Rates
• Externalities
• Greenwashing
• Gross Domestic Product (GDP) and Tourism
• Hard and Soft Tourism
• Hiking/Walking Tourism
• International Ecotourism Society, The
• International Relations and Tourism
• Mass Tourism
• Mixed-Use Development
• Natural Disasters
• Nature Reserves
• Olympic Games and Their Impacts
• Politics and Tourism
• Pro-Poor Tourism
• Recreation and Leisure
• Repatriation of Currency
• Seasonality and Tourism
• Second Home Ownership
• Sex Tourism
• Ski Tourism, Europe
• Ski Tourism, U.S.
• Slow Tourism
• Slum Tourism
• Social Tourism
• Staycation Tourism
• Sustainable Development
• Sustainable Tourism
• Tourism and the Millennium Development Goals
• Tourism Development
• Tourism Ethics and Codes of Conduct
• Tourism Multiplier
• Tourism Planning
• Tourism Policies
• Tourism Satellite Accounts
• Tourism Statistics
• Travel and Tourism’s Most Pressing Issues for the 21st Century
• Travel Trends in Africa
• Travel Trends in Asia & Pacific
• Travel Trends in the Middle East
• Triple Bottom Line
• Urban Planning and Development for Tourism
• Vacation Days and Impact on Travel
• Visitor Management
• Volatility of Tourism
• Voluntourism
• Walking Tours
• World Summit
• Worldmaking and the Representation of Peoples and Places in/Through Tourism
• American Automobile Association
• Car Rental Companies
• Computerized Reservation Systems
• Convention and Visitors Bureaus
• Destination Management Companies
• Group Travel Specialists
• Tour Operators
• Travel Agents and Agencies
• Accessibility Issues in Travel and Tourism
• Customs and Immigration
• Immunizations
• Passenger Air Tariff
• Pets, Traveling With
• Travel Practice Ethics
• Visa Waiver Programs
• Entrepreneurship
• Human Resource Management
• Revenue Management
• Strategic Management
• Air Traffic Control
• Airlines Reporting Corporation
• Caribbean Tourism Organization
• Civil Aeronautics Board
• Cruise Lines International Association
• European Travel Commission
• European Union and Travel Implications
• Federal Aviation Administration
• International Air Transport Association
• International Society of Travel and Tourism Educators
• National Transportation Safety Board
• Organisation for Economic Co-operation and Development
• Pacific Asia Travel Association
• Travel and Tourism Research Association
• World Health Organization
• Airport Trends
• Butler’s Tourism Area Life Cycle and Its Expansion to the Creative Economy
• Cohen’s Model of Typologies of Tourists
• Destination Management
• Infrastructure and Superstructure
• Plog’s Model of Typologies of Tourists
• Regulation and Deregulation
• Resort Development Planning
• Smart Tourism and Smart Destinations
• Stakeholder Analysis
• Supply and Demand
• SWOT Analysis
• Tourism Research
• Tourism Resources
• Tourism System, The
• Tourist Attractions
• Transportation and Infrastructure Issues in the Developing World
• Defining Travel and Tourism
• Qualitative Tourism Research
• Quantitative Tourism Research
• Research Tourism
• Body Scanners in Airports
• Deep Vein Thrombosis
• Hazmat and Travel
• Safety Management Systems
• Transportation Security Administration
• Travel Advisories
• Travel Sickness
• Global Positioning System
• Radio Frequency Identification
• Virtual Reality Tourism
• Accommodations, Types of
• Careers in Travel and Tourism
• Cell Phones and International Travel
• Children, Traveling With
• Currency, Traveler’s Checks, and Credit Cards
• Food and Beverage Establishments, Types of
• International Driving Permit
• Professional Certifications, Event Planners
• Professional Certifications, Travel Agents
• Timeshare Ownership
• Travel Apparel
• Travel Insurance
• Youth Hostels
• Adventure Tourism
• Arctic Tourism
• Backpacker Tourism
• Beach Tourism
• Bicycle Tourism
• Birth Tourism
• Business Tourism
• Campers, RVs, and Motor Homes
• Camping Tourism
• Casino Tourism, Asia & Pacific
• Casino Tourism, U.S.
• Corporate Travel
• Cruise Tourism
• Dark Tourism
• Day-Tripper Tourism
• Domestic Tourism
• Enclave Tourism
• Extreme Tourism
• Fair and Festival Tourism
• Film- and Media-Induced Tourism
• Game Park Tourism
• Garden Tourism
• Glamping Tourism
• Golf Tourism
• Hot-Air Balloon Tours
• Incentive Travel
• Leisure Tourism, Serious
• LGBT Tourism
• Lifestyle Tourism
• Marijuana Tourism
• Medical Tourism
• Meetings and Conventions Tourism
• Multigenerational Tourism
• Niche Tourism
• Slow Travel
• Spa Tourism
• Space Tourism
• Special Event Tourism
• Special Interest Tourism
• Sports Tourism
• Spring Break Tourism
• Theme Park Tourism
• Water Park Tourism
• Wedding Tourism
• Wellness Tourism
• Wildlife Tourism
• Air Flight Plan, Flight Path, and Flight Recorder
• Airline Cost Structure
• Airline Hub-and-Spoke System
• Airline Passenger Bill of Rights
• Airline Travel
• Airports in the United States
• Aviation English
• Bus and Coach Operators
• Bus Travel, Africa
• Bus Travel, Europe
• Bus Travel, Middle East
• Bus Travel, North and South America
• Commuter Airline
• Cruise Lines
• Cruise Port
• Highway/Freeway System, Africa
• Highway/Freeway System, Australia
• Highway/Freeway System, China
• Highway/Freeway System, Europe
• Highway/Freeway System, Japan
• Highway/Freeway System, Mexico
• Highway/Freeway System, U.S.
• In-Flight Amenities
• Legacy Air Carriers, History of
• Low-Cost Air Carriers
• Maglev Trains
• Priority Boarding
• Rail Travel, Asia & Pacific
• Rail Travel, Europe
• Ship Travel

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Why Is Superstructure Important In Tourism?

Infrastructure is the basis for the tourism-oriented superstructure. Attractions draw visitors to the destination, infrastructure allows access to the attractions, and superstructure enhances the overall experience.

What is the purpose of promoting off season tourism?

Promoting tourism during the low season can stimulate economic growth and jobs in Europe. The European Commission has identified seniors and young people as groups that can travel easily during the low season.

What is the role of exhibition in tourism industry?

Tourism exhibition is not only a place to offer tourism capacities and strengths of the country for the public, institutions, and linked organizations but also introduces the institutions and organizations which are administrators in the field of tourism to the public.

How do you approach tourism boards?

How To Contact Tourism Boards

• Create A Media Kit For Your Channels. Just like a Resume helps an employer in quickly analyzing the job-seekers core strengths, a Media Kit helps a tourism board understand the blogger.
• Find Relevant Email Address For Tourism Boards.
• Contact PR Firms.
• Write An Effective Email To Tourism Boards.

What is the difference between superstructure and infrastructure?

The difference between the two is that the infrastructure forms the base or foundation of business activity, while the superstructure forms the facilities and operational procedures of business activity.

What is the example of superstructure?

The definition of a superstructure is a building or part of a building built above the foundation. An example of a superstructure is the lobby and floors in a high rise building. The parts of a ship’s structure above the main deck.

How do you market a tourism company?

How to Market a Tour Company for Free: 7 Big Platforms You Should be on

• Internet marketing for tour operators.
• The new TripAdvisor.
• Collect reviews on Yelp.
• Facebook – the Swiss army knife of tour marketing.
• Research your market with Quora.
• Use Instagram to store your photos and short videos.
• Increase your reach with YouTube.

What is the digital tourism network?

The Digital tourism network is an informal forum of EU tourism industry and other relevant stakeholders Launched in 2015. The consultation received around 3000 responses from tourism businesses, professional associations and federations as well as public authorities at national, regional and local level.

Meetings, incentives, conferences and exhibitions (MICE) is a type of tourism in which large groups, usually planned well in advance, are brought together.

How does load shedding affect tourism in Cape Town?

The drought crisis, which meant that travellers needed to cut back on their water usage, proved concern. And now with Eskom implementing strict load shedding schedules recently, the power cuts have had a significant impact on tourism in the Mother City.

How is Eskom load shedding affecting Cape Town?

“These lost volumes don’t only mean a decrease in revenues for tourism businesses but result in fewer new jobs being created for ordinary citizens across our country. When every 12 tourists translate into one new job, we should be fighting to retain every single visitor.

Why is tourism not considered a sustainable industry?

Tourism is not, as many people assert, a clean and non-polluting industry. A major problem is the lack of a common understanding of what sustainable tourism or “ ecotourism” means. This ambiguity leads to violations of environmental regulations and standards.

Is the tourism-Biz-community message board legal?

LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons.

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What is superstructure and infrastructure in tourism?

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Add your answer:

What do you mean by superstructure in relation with tourism industry?

lodgings, restaurants, and recreation facilities are examples of superstructure the complementary one to superstructure is infrastructure, which are the more basic tourism supportive facilities like hospital, pipe line, signal towers...

What are the five tourism supply components?

natural resources,infrastructure,superstructure,transportation and hospitality resources.

What is infrastructure and superstructure?

define definition of superstructure in road works

What is the opposite of an infrastructure?

Suprastructure, or superstructure.

More words with struct in them?

construct, obstruct, instruct, structure, infrastructure, microstructure, restructure, superstructure, substructure

What is Different between superstructure and infrastructure?

Infastructure is usually applied to an indemic installation such as a telephone network across a county of perhaps a road system. A superstructure is generally the framework of a single item such as an oil rig

What is tieza?

Tourism Infrastructure and Enterprise Zone Authority

What is the cultural materialist perspective of the use of a three-level model of culture?

The three level model of culture is infrastructure, structure, and superstructure.

What is the cultural materialist perspective of the use of a three level model of culture?

Why is it important to do planning and develop tourism.

If you are a developing country that is trying to bring in tourist this would be very important. Planning and developing tourism in an under developed country will be good for the overall economy and can help develop a country that would otherwise be left under developed and its citizens would be left without jobs and the ability to imporve their lives. Planning and developing tourism can also help develop infrastructure and superstructure, help with education and technology in the host country as well.

What elements of society did Marx place in his superstructure?

The major elements that Karl Marx placed in the superstructure of society are the following:1. Art 2. Religion 3. Law 4. Schools 5. Science 6. The Press 7. Government and 8. Entertainment.

What is the role of the government in tourism development?

Foreign exchange earnings and increase in government revenues from tourism result in infrastructure development such as roads, sewage, ...

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AnswersAll is a place to gain knowledge

What is tourism infrastructure and superstructure?

Tourism infrastructure and superstructure are created, tangible components of the tourism industry’s supply side. They differ with respect to the directness of their link to the tourism industry, providers, services offered, investment profile, [Page 648]and profit potential.

What is an example of superstructure?

The definition of a superstructure is a building or part of a building built above the foundation. An example of a superstructure is the lobby and floors in a high rise building. The parts of a ship’s structure above the main deck. That part of a ship above the main deck.

What are infrastructure works?

Civil engineers design, construct, maintain and improve the physical environment, including; bridges, tunnels, roads, railways, canals, dams, buildings, flood and coastal defences, airports and other large structures.

What is tourism infrastructure and how is it made?

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Charged up: NSW tourism hotspots to go electric in bid to fuel EV uptake

Electric vehicle travel to be made easier with 1,500 NSW government-funded charging plugs in regional tourism areas

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Drivers will be able to eat, drink and gaze their way along electric vehicle -specific tourist drives once hundreds of destinations chargers are rolled out across New South Wales.

At least 1,500 destination chargers are expected to be established in tourist hotspots to boost charging infrastructure in regional towns.

Wineries, restaurants, zoos and museums are among the businesses and council areas being offered 75% off the cost of setting up chargers.

Once the chargers are rolled out, a series of EV tourist drives will be developed to promote electric travel across NSW.

The $10m government program coincides with electric vehicles making up 10.6% of new passenger and SUV car sales this year.

But recent research suggests those numbers would accelerate if consumer concerns about the number of chargers were alleviated.

The premier, Chris Minns , will launch the program on Friday from the mid-north coast, beyond the limit of most electric cars’ battery range.

“Providing EV charging plugs at regional destinations across our state will help make ‘range anxiety’ a concern of the past and give more drivers the confidence to make EV purchases,” he said in a statement.

“More EVs on the roads is an important part of the decarbonisation of our transport system and essential to meeting our net zero by 2050 target .”

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The program is part of the state’s strategy to have EVs make up more than half of all car sales by 2031.

“Increasing the number of EV chargers across regional NSW is a win for the environment, a win for EV drivers, a win for tourists and a win for regional businesses,” the energy minister, Penny Sharpe, said in a statement.

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Regional businesses and councils, including those in Newcastle and Wollongong, can apply for help with up to four chargers from Friday afternoon.

The program is part of a $209m investment in NSW charging infrastructure, including $10m to retrofit apartments with EV chargers and $149m for ultra-fast charging infrastructure.

An additional $260m in the budget will underpin the rollout of a new statewide EV strategy.

However, the investments come at the cost of up to $5,540 in bonuses for those switching to electric.

An exemption from stamp duty for vehicles priced under $78,000 and a $3,000 rebate for new EVs will be cut from 1 January.

Those who have bought, or have put a deposit down before year-end, can still access the bonuses regardless of when delivery occurs.

• Electric vehicles
• Tourism (Australia)
• New South Wales holidays
• Chris Minns
• New South Wales politics
• New South Wales

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