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The purpose of this introductory paper is to provide a broad overview of the significance of this theme issue.

The introductory paper draws from macro data of tourism growth in various countries and highlights the rapid rate of tourism growth in many, especially developing countries. The paper ventures the possibility of an anti-tourism wave in many destinations as a result.

To prevent tourism from displacing and disrupting the lives of residents in many countries, as well as from diminishing the experience for many visitors, the rate with which tourism grows must be studied and managed.

The value of this paper is that it highlights the rate of tourism growth and not tourism growth per se as the critical factor in making tourism a positive or negative force for change in many communities.

The aim of this chapter is to examine the role of real exchange rates in the relationship between tourist arrival and economic growth in Malaysia over the period of 2000–2018. We disaggregate Malaysian tourists into six geographical regions, namely Asia, Singapore, Europe, Pacific region, Americas, and Africa. Using a non-linear autoregressive distributed lag model, we find that the appreciation of real exchange rates with positive growth of economy plays a prominent role in influencing international tourist arrivals from Singapore, other Asian countries, Pacific region, Europe, and Americas. Our study suggests that real appreciation is important in providing some insights into the effectiveness of growth-led-tourism policies. In line with this, some implications are provided at the end of this chapter.

Tourism is growing globally and expanding into increasingly differentiated thematic areas and places that have thus far been unknown. The Mediterranean region is one of the leading tourism areas in the world accounting for one-third of global tourism receipts and half of global tourism arrivals. However, the countries of this region, undoubtedly attractive for their natural and cultural sites, history and traditions, must face the continuous challenges that the highly competitive global market and the sustainability of the environment and resources pose.

This chapter aims to examine and discuss the relationship between tourism and economic growth in the Mediterranean region, specifically, the issue of economic growth led by tourism and its central focus in public policy. The tourism–economic growth relationship will also highlight the different challenges between the developed and the developing countries. The relationship between tourism and sustainability in the Mediterranean region is the second theme of this contribution. The concept of ‘slow tourism’ as an operational proposal for sustainable tourism is also discussed; specifically, the natural environment and the cultural heritage need to be preserved by all tourism stakeholders.

Technology is an important factor contributing to the economic development of countries. In the context of the 4th industrial revolution, a country's success lies in its ability to grasp and absorb the level of technology into production and economic development. This aims of this research are to evaluate the impact of the tourism and technological contribution on economic growth in East Asian countries in the period of 2010–2019.

This research uses the feasible generalised least squares (FGLS) to revise the diagnostic problems and other advanced techniques to check the robustness; the research results confirm that there is no impact between tourism and economic growth.

The main driving force behind economic comes from: technological contribution, financial development and foreign direct investment inflows.

The research confirms that there is a significant and negative relationship between exchange rate and economic growth.

Tourism–economy relationship in India has been studied extensively in the past literature using a single equation approach. However, the present paper diverted from this trend and examined the tourism–economy relationship using the specific to general modelling approach over the 1990–2018 time period. The study also accounts for the influence of merchandise trade, capital formation, foreign investment inflows and inflation on economic growth to achieve the robustness of the coefficient estimates.

To achieve the objective, the study utilised a specific to general modelling strategy. First, the regression equation includes only three core variables: gross domestic product (GDP), international tourist receipts and international tourist expenditures. Next, the authors include other control variables in the regression equation one by one, leading us to test five model types for investigating the cointegration among the variables. As for the estimation technique, the authors employed autoregressive distributed lag (ARDL) approach.

The paper's findings highlight that tourism receipts and expenditures exert a positively significant impact on economic growth. Moreover, including the additional independent variables does not substantially change the tourism and economic growth relationship. The existence of one-way causality from tourism expenditures to economic growth supports the tourism-led growth hypothesis. These findings highlight the rationale for intervention by the government and policymakers to promote tourism potential and facilities to accelerate the overall growth performance of the country. While the existence of one-way causal effect from economic growth to tourism revenues supports the growth-led tourism development hypothesis, implying that economic expansion is necessary for tourism development.

This research article tried to present a comprehensive picture of India's tourism–economy relationship. However, the present study is organised as an aggregate economy-level analysis. It assumed that the aggregate tourism sector is homogenous. However, different tourism sectors exert different levels of influence on the economy. The authors expect future research can take the disaggregated analysis of the tourism–economy relationship.

This study provides valuable insights into the tourism-led growth hypothesis in India. The study highlights comprehensive intervention by the government and policymakers for accelerating tourism development to invigorate the overall growth performance of the country over the long run. The principal recommendation emerging from the present research is that the tourism growth potential can be depended upon to stimulate the economic performance of the Indian economy.

The present study diverted from the previous empirical studies by following a specific to general modelling strategy. First, the regression model includes only three core variables such as economic growth, tourism receipts and tourism expenditure. Next, the authors include other control variables in the regression equation one by one, leading us to test five model types for investigating the cointegrating relationship among the variables. GDP growth rate is used as a dependent variable in all five specifications. The idea is to expand the model to capture every feature of the data generating process.

The purpose of this paper is to verifying the economic resilience of islands and, in particular, the role of the tourism sector in the reaction to the most recent economic crisis. The analysis concerns insular contexts, such as the greater island regions in the Mediterranean basin.

Static and dynamic panel data techniques are used for a sample of 13 island economies over a period of 16 years.

Results show that the growth factors for regional islands are similar to the ones usually considered for other regions, but the tourism-led growth hypothesis is highly supported. Tourism demand more than supply plays a role together with accessibility. The crisis has reduced the importance of tourism supply, while tourism demand and accessibility have remained crucial for growth together with other traditional engines of growth.

To the best of authors’ knowledge, none of the current works has considered territorial determinants and tourism indicators inside the same framework analyzing growth in island economies by considering the changes occurred during the crisis explicitly.

The purpose of this concluding paper is to distill several guiding principles, as to how communities can manage rapid tourism growth, drawn from the collection of articles in this theme issue. The paper provides a concise, grounded case study to anchor the overall conclusion of the theme issue.

It summarizes the essence of the different articles comprising the issue, identifies their common link to the strategic question and highlights the relevance of each.

The paper presents six guiding principles for managing rapid tourism growth, ranging from bolstering social support for residents’ livelihood and providing sustainable assistance for small- and medium-sized enterprises (SMEs) to prioritizing community needs for transportation and mobility. Analytic tools to help mitigate the loss of place, identity and heritage and identify optimum levels of visitor numbers are also described.

The paper underscores problems emanating from rapid tourism growth and seeks to synthesize the disparate ideas on precipitous tourism-induced change by anchoring them largely (but not only) in the specific context of Macao as a highly urbanized city affected by rapid tourism growth.

This study empirically examines the moderating role of geopolitical risk on the tourism–economic growth nexus by applying a recent geopolitical risk indicator developed by Caldara and Iacoviello (2022) in a cross-country panel data growth model context for a sample of 24 countries.

A Dummy Variable Least Squares panel data model, nonparametric covariance matrix estimator and SYS-GMM estimation techniques are employed for the analysis. The authors capture the GPR moderating effect by disaggregating the cross-country sample according to low versus high country GPR score and through a GPR interaction coefficient. Several controls are included in the models such as gross fixed capital formation and—consistent with Barro (1990)—government consumption. Trade openness is used to account for the export-led growth effect. In line with neoclassical growth theory (e.g. Barro, 1991), the authors also include the real interest rate, to account for policy makers' commitment to macroeconomic stability, financial depth, as a proxy for financial development, population growth and the level of secondary school education. The authors also control for unobserved country-specific and time-invariant effects.

The research finds that the interaction term of geopolitical risk significantly contributes to the predictive ability of the regression and provides empirical evidence that confirms that only in low geopolitical risk countries international tourism positively and significantly contributes to economic growth. Important theoretical and policy implications flow from these findings.

The study not only contributes to advancing academic knowledge on the tourism–growth nexus, it also has impact beyond academia. Many countries have in the past pursued and many continue to pursue, tourism specialization and/or tourism-led growth strategies based on the theoretically well-established and empirically validated positive link between inbound tourism and economic growth. The findings alert policy makers in such countries to the significant moderating role that geopolitical risk plays in affecting the above-mentioned relationship and to the importance of prioritizing geopolitical stability as a policy precursor for the successful implementation of such strategies.

The purpose of this paper is to study the direction of the causality between tourism development and economic growth in Lebanon between 1995 and 2013, after taking into consideration terrorist incidents and their intensities. These are considered as exogenous shocks that affect tourism development and economic growth instantaneously and with a lag.

To reach the objectives, the authors estimate a vector auto regressive model with exogenous variables, applying a series of unit root tests with and without structural breaks and the Granger causality test.

The findings suggest a positive unidirectional causality running from tourism development to economic growth in the short run. Thus, the authors find evidence for the tourism-led growth hypothesis (TLGH) in Lebanon despite the exposure of the country to frequent terrorist incidents. The impulse response functions reveal that tourism development (economic growth) responds positively to a positive shock to economic growth (tourism development).

The findings call for Lebanese policy makers aiming at promoting growth to design policies that encourage tourism, such as implementing tourism marketing policies and building the needed tourism infrastructure. Such policies will have positive but transitory effects on economic growth. The findings may also be useful for regional representatives of intergovernmental organizations and the offices of statistics of United Nations World Tourism Organization and the World Bank to better understand the tourism industry in Lebanon and similar countries suffering from instabilities.

This paper contributes to the existing literature in three points: despite the importance of the tourism industry to the Lebanese economy, this topic did not receive careful attention in the literature; it takes into consideration the presence of structural breaks and possible nonlinearities in the number of tourist arrivals; and it investigates the TLGH after accounting for instability in the country.

Most existing studies on the impact of tourism on economic growth adopt an econometric approach that is insufficient to confirm that tourism actually leads to economic growth. Moreover, it cannot explain the causalities of different variables. Taking Mauritius as an example, this study aims to use the dynamic stochastic general equilibrium approach to investigate the contribution of tourism to economic growth when there is a productivity shock in the tourism sector.

A two-sector, small, open economy is modelled under the dynamic stochastic general equilibrium framework. The model is estimated using the Bayesian method based on real tourism and macroeconomic data from Mauritius for the period from 1999 to 2014. The impulse response functions are used to simulate the contribution of tourism to economic growth when there is a productivity shock in the tourism sector.

The simulation results show that the Mauritian gross domestic product (GDP) would increase by 0.09 per cent if the productivity of tourism is improved by 1 per cent, indicating that tourism could lead to economic growth. Considering the average annual growth rate of the Mauritian GDP, the contribution of tourism to its economic growth is significant. Furthermore, the effects of tourism on economic growth are moderated by price elasticities in international tourism demand.

This is the first study that estimates the dynamic stochastic general equilibrium model using the Bayesian method in tourism economic field. By correcting the prior information with real tourism and macroeconomic data, the estimation and simulation results are more robust compared with the calibration method, which has been used frequently in tourism studies.