Can tourism specialisation deteriorate human capital?

Abstract

[eng] It is well-known that tourism can provide important benefits other than household income through its direct, indirect, and induced effects on the destination. Tourism negative impacts on the economy and the environment are widely studied, and to a lesser extent, the effects of tourism on human capital are analysed too. This paper studies the relationship between a country’s tourism specialisation and its human capital. Based on panel data that brings data on 30 European countries between 1995 and 2019 and a self-made Tourism Specialisation Index (TSI), the study analyses the impacts that different levels of tourism specialisation have on human capital. The findings show that specialising in tourism is a valid option to promote human development as it enhances well-being through household income, increased education opportunities and years of healthy life. However, it is here proved that high degrees of tourism specialisation do not proffer significant benefits on GDP per capita, and it deteriorates human capital by having a negative and significant effect on education and health. Hence, governments should promote tourism as long as it enhances all aspects of welfare (economy, health and education), otherwise they should focus on the social services that are not provided through tourism’s indirect or induced effects.