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Coastal Tourism and ‘Dutch Disease’ in a Small Island Economy

Author

Listed:
  • Jean-Jacques Nowak

    (Faculté de sciences économiques et sociales, EQUIPPE, Université de Lille I, 59655 Villeneuve d'Ascq, France)

  • Mondher Sahli

    (Victoria University of Wellington, VMS, PO Box 600, Wellington, New Zealand)

Abstract

Using the embryonic ‘Dutch disease’ literature on tourism, this paper examines the economy-wide effects of an inbound tourism boom on a small open island economy. It illustrates a range of new findings not present in traditional tourism economics literature. This paper also addresses the complexities that surround the economic evaluation of the net effect of tourism growth on the host community. An important result obtained here is that increased inbound tourism may lead to net welfare losses when tourism products are intensive users of coastal land. Thus, this paper provides a warning to researchers and practitioners of the need to evaluate both the tourism sector's overall impacts on the host economy and its net effect on the community when considering its expansion.

Suggested Citation

  • Jean-Jacques Nowak & Mondher Sahli, 2007. "Coastal Tourism and ‘Dutch Disease’ in a Small Island Economy," Tourism Economics, , vol. 13(1), pages 49-65, March.
    • Handle: RePEc:sae:toueco:v:13:y:2007:i:1:p:49-65
    DOI: 10.5367/000000007779784452
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    References listed on IDEAS

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    1. Sahli, Mondher & Nowak, Jean-Jacques, 2005. "Migration, Unemployment and Net Benefits of Inbound Tourism in a Developing Country," Natural Resources Management Working Papers 12157, Fondazione Eni Enrico Mattei (FEEM).
    2. Gooroochurn, Nishaal & Blake, Adam, 2005. "Tourism Immiserization: Fact or Fiction?," Natural Resources Management Working Papers 12144, Fondazione Eni Enrico Mattei (FEEM).
    3. Mondher Sahli & Jean-Jacques Nowak, 2005. "Migration, Unemployment and Net Benefits of Inbound Tourism in a Developing Country," Working Papers 2005.148, Fondazione Eni Enrico Mattei.
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    Cited by:

    1. Nishkar Kumar, Nikeel & Patel, Arvind, 2024. "A test of the tourism Dutch disease hypothesis in developing countries," Journal of Air Transport Management, Elsevier, vol. 116(C).
    2. Schallenberg-Rodriguez, J. & Inchausti-Sintes, F., 2021. "Socio-economic impact of a 200 MW floating wind farm in Gran Canaria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    3. Taotao Deng & Mulan Ma, 2016. "Booming tourism industry and urban economic growth," Tourism Economics, , vol. 22(5), pages 1161-1168, October.
    4. Claire Goavec & Jean-François Hoarau, 2015. "Structural economic vulnerability and tourism dependence: new assessment for small island developing economies [Vulnérabilité économique structurelle et dépendance touristique : quels enseignements," Post-Print hal-01454720, HAL.
    5. Juan Gabriel Brida & Daniel Bukstein & Nicolás Garrido & Emiliano Tealde & Sandra Zapata Aguirre, 2010. "Impacto económico del turismo de cruceros: un análisis del gasto de los cruceristas que visitan el Caribe colombiano," Documentos de Investigación 58, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    6. Danie F. Toerien, 2021. "A Small-Town Economic Revitalisation Conundrum: Focus on Tourism, Manufacturing, or Both?," Energies, MDPI, vol. 14(22), pages 1-18, November.
    7. Jun Zhang & Youhai Lu, 2022. "Exploring the Effects of Tourism Development on Air Pollution: Evidence from the Panel Smooth Transition Regression Model," IJERPH, MDPI, vol. 19(14), pages 1-19, July.
    8. Baidoo, Francis & Pan, Lei & Fiador, Vera Ogeh Lassey & Agbloyor, Elikplimi Komla, 2022. "Importing to Feed International Tourists: Growth Implications for Islands across the Globe," MPRA Paper 111964, University Library of Munich, Germany.

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