Tourism demand and energy consumption in the service sector

Abstract

In the context of sustainable development, energy consumption reduction and energy efficiency improvement are recognized as global priorities. International tourist arrivals are increasing year by year, and tourism is recording increases in energy consumption. However, tourism needs to recognize its role in sustainable development, and make a significant contribution by using renewable energy and energy efficient technologies. Therefore, the aim of this paper is to analyze the relationship between tourist overnight stays and energy consumption in the service sector in the 10 EU countries that achieved the highest number of overnight stays. The survey covers a period of 19 years, from 2000 to 2018. Panel data analysis is used to observe the relationship between these two variables across time, based on random effects. The results show that there is a correlation between tourism overnights stays and energy consumption in the service sector, and that energy consumption is changing with the increase in tourist overnight stays. The results of the analysis indicate the need to enhance energy efficiency as well as encourage the use of energy from renewable sources in order to enable the sustainable development of economic and ecological systems. The empirical findings of this study can provide guidance on energy management to private entities and tourism policy makers in the EU.