Invited Speaker
Prof. Yoshihiro Hamaguchi
Department of Economics, Faculty of Economics, Hannan UniversitySpeech Title: Does trade liberalization contribute to sustainable tourism via industrial advancement?
Abstract: The expansion of tourism mobility associated with globalization has promoted tourism development, but it has also caused tourism pollution and led to the intensification of carbon in the tourism industry. Environmental tourism policies being introduced into the tourism industry do not necessarily lead to realizing sustainable tourism. Here, the industrial upgrading of the manufacturing sector may contribute to sustainable tourism through its ripple effects. Using an R&D-based growth model with heterogeneous firms in the tourism sector including tourism mobility, we investigate the impact of trade-environment tourism policies on economic growth, entry and exit, tourism consumption, and pollution emissions. The results of the analysis show that it is difficult to achieve sustainable tourism through a single policy, as each policy results in a trade-off between the economy, the environment, and tourism. Trade liberalization improves productivity and economic growth through a cleansing effect, but it also causes pollution to increase and tourism to decrease. In this case, reducing pollution and increasing tourism through a tourism tax cut would mitigate the negative effects of trade policy, although it would harm economic growth. An environmental tax would encourage pollution reduction in exchange for a deterioration in productivity. Therefore, we should aim for sustainable tourism through a policy mix of trade liberalization under the policy of environmental tax hikes and tourism tax cuts.