Tourism, Growth and Residents' Welfare with Pollution

In this paper, we build a standard model of optimal growth, with exogenous population growth and technical change, for an economy specialised in tourism. Assuming that the production of tourism is pollution generating and that tourists are pollution adverse, we establish propositions regarding long-term growth and sustainability of tourism. We show that mass tourism only is associated with high growth rates and that in general, mass tourism is not sustainable. To sum up, our model shows that high growth sustainable tourism does not actually exists.