Modelling the economics of sustainable tourism

To date tourism has been synonymous with intense territorial use, which has led to a reconsideration of the relationship between tourism and its location in order to foster more environmentally-friendly development. In this context, the paper provides a novel approach to the analysis of tourism and the environment by developing a theoretical general equilibrium model addressing the integration of the environment in the economic system (i.e. in a circular economy) from a tourism perspective. The model's innovative aspect is in assuming the use of land not only as an input, but as an output. Specifically, the land is no longer supplied in a fixed quantity to the economy, but society decides between its enjoyment or its rental as a factor of production; thereby achieving a more rational use of this resource. Likewise, its consideration as an output allows us to stress its role as an asset; implying that its preservation also contributes to economic growth. The main findings show that, when the environment is integrated into the economic system, tourism is not a source of ecological depletion, but rather an essential contributor to its preservation. However, this necessary integration does not keep tourism from eroding sectoral diversification and reinforcing import dependence.