Exploring the nexus between economic growth and tourism demand: the role of sustainable development goals

Sihan Liu, Hasibul Islam (), Tusher Ghosh, Muhammad Sibt e Ali and Kaniz Habiba Afrin
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Sihan Liu: Liaoning University
Hasibul Islam: Varendra University
Tusher Ghosh: Ahsania Mission University of Science and Technology
Muhammad Sibt e Ali: Zhengzhou University
Kaniz Habiba Afrin: Varendra University

Palgrave Communications, 2025, vol. 12, issue 1, 1-14

Abstract: Abstract Tourism plays a vital role in driving global economies by facilitating cultural exchange, creating job opportunities, and advancing sustainable development, making it a fundamental pillar of international growth and community strength. While many studies have examined the connection between tourism and economic growth, previous research has often neglected the potential reciprocal effects of economic growth on tourism. This study utilizes the IV-GMM and Pooled Mean Group (PMG) models to analyze the intricate relationship between tourism and economic growth across 35 Asian countries from 2004 to 2020. In addition to exploring the linear relationship, we investigate the asymmetric dynamics and the mediating connections. Furthermore, this study assesses the moderate impact of the Sustainable Development Goals (SDGs). Our key findings reveal that economic growth substantially boosts tourism demand. To verify robustness, we use alternative dependent and independent variables. The results show that economic growth has an asymmetric relationship with tourism, especially across countries with low, medium, and high levels of tourism demand. Moreover, economic growth drives tourism demand by influencing national income and exports. Additionally, the SDGs not only exhibit a direct positive impact on tourism demand but also serve as a moderating factor in the relationship between economic growth and tourism. Governments should align tourism strategies with economic growth policies by investing in infrastructure and leveraging exports to boost tourism demand. Integrating SDGs into these strategies can ensure long-term, inclusive, and environmentally sustainable growth.

Date: 2025
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DOI: 10.1057/s41599-025-04733-y

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