Sustainable Destination Management in Luxury Tourism: Balancing Economic Development and Environmental Responsibility

This study applied the Stimulus–Organism–Response Theory to investigate the impact of sustainable destination management on perceived luxury service quality, taking into account the mediating role of perceived environmental responsibility and the moderating effect of tourist environmental awareness. Data were obtained from 541 tourists in Northern Cyprus, and the analysis was conducted using Herman’s single-factor test in SPSS version 23 and partial least squares structural equation modeling in SmartPLS version 4.1.1.2. The study’s results revealed a significant positive influence of sustainable destination management on both perceived luxury service quality and environmental responsibility. Furthermore, the study showed a significant positive relationship between perceived environmental responsibility and perceived luxury service quality. Additionally, tourist environmental consciousness was found to be an important influencing factor in perceived luxury service quality. The mediating role of perceived environmental responsibility was revealed to be a significant partial mediator between sustainable destination management and perceived luxury service quality pathways. Although environmental awareness revealed an insignificant moderating influence on the relationship between sustainable destination management and perceived luxury service quality, it indicated a negative significant moderating influence on the relationship between perceived environmental responsibility and perceived luxury service quality. The study highlights how assessments of luxury services are contingent upon perceived environmental responsibility through sustainable destination activities. Emphasizing both academic and management perspectives, it encourages future research to explore broader psychological and contextual factors. Therefore, it underscores the strategic necessity of sustainability in enhancing the luxury tourism experience.