Analyzing the environmental impact of the hospitality industry using the consumption footprint approach

The hospitality industry, being a major part of the global economy, has negatively impacted the environment and caused sustainability issues. The environmental impacts of the industry are displayed through various pressure indicators, and there are numerous exogenous factors that can potentially mitigate or worsen these pressures, ranging from economic to political. This study aims to analyze the environmental impact of the hospitality industry by utilizing the consumption footprint method, i.e. ; using the data for the environmental pressure indicators of the industry including land use, raw material use, and blue water consumption. These indicators are examined for their relationship with factors concerning governance, economic development, employment, and foreign direct investment. The data collected and used for this research is in panel format, centered around three major groupings consisting of the OECD, EU-27, and Global data. Panel data analysis is then conducted on the gathered data in order to analyze the relationships between the indicators and the potentially mitigating factors if such relationships exist. The findings of the research show that the quality of governance and economic development affect the environmental impact of the hospitality industry in a mitigating manner; whereas employment proves to be the opposite. Foreign direct investment, on the other hand, yielded mixed findings for this matter.