Fourth International Conference on Tourism and Leisure Studies

Abstract

Forecasts for the market of global tourism suggest that in the year 2030 emerging destinations will achieve a greater market share than traditional ones. The importance of tourism in these countries becomes for this sector an opportunity for economic development and prosperity, as it is included in the strategies for achieving the major global goals, such as the Sustainable Development Goals (Agenda 2030). According to recent UNWTO workpapers, small developing island states become a focus of attention, since tourism turns into one of their main sources of wealth. However, this activity continues to be controversial with respect to the socioeconomic benefits it brings to the population. The main objective of this work is to contrast the capacity of the tourism phenomenon to become a driver of economic prosperity in small developing island states, analysing both its direct and indirect effects on living conditions of the population. To do this, a series of panel data models have been estimated from a database composed of 11 small developing island states worldwide during the last decade. The results suggest that as tourism volume increases in these islands, living conditions of the population are gradually enhanced. Furthermore, tourism has a relevant “multiplier” effect on the economy of small developing island states. Some recommendations to competent authorities are indicated in order to analyse the real potential of their current tourism development models for economic prosperity.