This study examines the long‐run relationship between tourism development and economic growth in a small island destination. Determining whether the nature of the relationship is unidirectional or bidirectional provides insightful information as to policies to be implemented. This information is crucial in a resource‐poor environment, such as a small island destination. The study employs an econometric methodology consisting of unit root testing, co‐integration analysis, vector error correction modeling and Granger causality testing. Results confirm the reciprocal hypothesis. The policy implication is that resource allocation supporting both the tourism and tourism‐related industries could benefit both tourism development and economic growth. Copyright © 2013 John Wiley & Sons, Ltd.

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This study estimates the effect of seasonal patterns of pull/push weather elements (rainfall, temperature, wind, and cloud coverage) on recurrent fluctuations in tourism demand for Aruba, originating from the USA and Venezuela. The estimation is based on an econometric methodology consisting of decomposing time series of weather elements and tourism demand, using a Census X-12 decomposition procedure, and subsequently applying a unit root test, anEngle & Granger cointegration test, a Granger causality test, and a Euclidean distance measure.The results show no influence of weather (pull and push) on the seasonal patterns of tourism demand from Venezuela. On the other hand, the study showed a clear causal relationship between (pull and push) seasonal weather variability and tourism demand from the USA.

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Tourism development (TD) and quality of life (QoL) have been studied mostly from the perspective of how TD affects QoL, but the inverse relationship is less widely researched. Understanding this interrelationship will broaden the definition and goals of development, and will help shifting the debate from an income perspective to a QoL standpoint. This study assesses the linkages between TD, QoL, and economic growth for the island of Aruba. The study contributes to the literature by improving the understanding of the nature of the relationship between TD and QoL, by advancing the theory-building process. The methodology involves multivariate cointegration analyses and Granger causality testing. The results confirm the two-way direct relationship between TD and QoL, with proactive roles for both direct and indirect relationships. The findings highlight the need for recognizing the importance of QoL in determining TD, and understanding the workings of TD and economic growth on QoL dimensions.