Tourism FDI, Tourism Development and Sustainability: Evidence from North Africa

Abstract

[eng] Foreign Direct Investment (FDI) plays a pivotal role in shaping the tourism sector, exerting varied effects across different regions. This study concentrates on assessing the influence of FDI in tourism on tourism development within North African nations, with a specific focus on Egypt, Tunisia, and Morocco. Adopting an integrated approach, we examine how these interactions contribute to socio-economic and environmental aspects of society, aligning with principles of sustainability. Our objective is to offer nuanced insights into the diverse impacts of tourism on economic, social, and environmental dynamics. These insights hold potential to guide policymaking and strategic decisions tailored to address the distinct challenges faced by the region. In this regard, our analysis uncovers the important influence of FDI on tourism, significantly boosting the development of the sector in North Africa. While tourism development correlates positively with economic growth and reduces male unemployment, its effects on female unemployment are ambiguous. Additionally, the observed relationship between tourism receipts and CO2 emissions suggests that sustainable practices are critical to mitigate environmental impacts as the sector grows.