Balancing economic benefits and environmental costs: Introducing carbon footprint indicators in tourist market targeting

Abstract

We argue that governments’ decisions to target certain tourist markets must consider both benefits and costs. We design a composite indicator methodology to assess economic benefits, using six classic indicators of market desirability (leadership, dynamism, seasonality, length of stay, expenditure and connectivity), which we complement with two carbon footprint indicators indicative of some of the costs incurred by the planet (CO_2e per tourist night and CO_2e per tourist trip). We model how target market decisions should change as the weight given to carbon costs changes from zero (current scenario) to 25% and 50% in the set of indicators used to select target markets. Adding carbon data in a cost-benefit analysis makes regional and national markets much more attractive than distant markets due to their low carbon footprints, despite shorter tourist stays or lower expenditures. Our method can inform government strategies to decarbonize while maintaining a clear market focus.