Environmental Quality and Optimal Investment in Tourism Infrastructures: A Small Island Perspective

Abstract

As tourism is becoming one of the most important sectors of the world economy, the number of small islands trying to develop a competitive tourist activity is increasing and this strategy appears as growth enhancing. In most cases, it relies on the environmental quality of the destination, but also on lodging infrastructures and related services that tourists deserve in order to enjoy a good experience. This paper explores the intertemporal trade-off between investments and environmental quality preservation needed to ensure tourism profitability in the long run. It highlights the possible cyclical evolution of environmental quality, tourist infrastructures, investments and visitor numbers, considering both the central planner and the market solutions.

On the carrying capacity and the optimal number of visitors in tourism destinations

“…resources (human and physical) to absorb the effects of tourism so that tourism and other activities and attributes would be able to be maintained over the long term'' (Butler, 1999). Once the maximum tourist number is exceeded, negative outcomes result at human and environmental levels, such as in resident's attitudes to tourism; consequently the nature of the destination may change, becoming less attractive to tourists, and tourism may decline 2 (Butler, 1999;Giannoni and Maupertuis, 2007). However, whatever is the adopted definition of carrying capacity, there is likely to be a level whereby '' .…”

Regional Public Spending for Tourism in Italy: An Empirical Analysis

“…This result is only partially surprising, considering that the economic literature regarding the impact of transport infrastructures on tourism flows contains mixed results. Giannoni and Maupertuis (2007) offer an evaluation of the role of infrastructures in attracting tourism flows, in addition to considering their impact on the environment (especially in small islands). 7 Third, a non-significant effect emerges in our present analysis for 'cultural endowments', as measured by a dummy variable that captures the presence of site(s) included in the World Heritage List of the United Nations Educational, Scientific and Cultural Organization (UNESCO).…”

Development on the periphery: A case study of the sub‐national island jurisdiction of Pitcairn Island

“…Small island states and territories share common problems that arise from their physicalgeographical and ecological characteristics, aspects that have prompted significant interest among academics and policy-makers interested in sustainability issues (see Baldacchino, 2002Baldacchino, , 2006bGiannoni and Maupertuis, 2007;Kelman, 2007;Dodds, 2010;Kokkranikal and Baum, 2011;Ruggieri, 2011;Scheyvens and Momsen, 2008). Moreover, several authors have specifically addressed these issues in the Pacific (see Page and Lawton, 1996;Twining-Ward and Butler, 2002;Berno, 2003;Christensen and Mertz, 2010).…”