Tourism performances through the lens of the circular economy framework: Evidence from EU countries

Performanse turizma kroz prizmu cirkularne ekonomije: Analiza zemalja Evropske unije

Abstract

Purpose – Tourism, based mainly on the linear model, is a sector that makes a crucial contribution to economic growth but still has an undeniable negative impact on the environment. Thus, its role in the transition to the circular economy (CE) has been recognized as an initiative consistent with the sustainable development goals, mitigating the environmental externalities of tourism and further contributing to economic development. The authors aim to examine the application of CE principles in the tourism sector and assess their environmental impact. Methodology – Employing the CRITIC, MOORA, ARAS, and CoCoSo methods, the authors analyze the ranking position of the EU-27 countries, examining the combined tourism and CE indicators (recycling rates, circular material use rate, waste per capita, resource productivity, international tourism expenditures, receipts, arrivals and departures, travel item receipts, tourism employment, and tourism contribution to GDP). Findings – The research findings reveal that countries which harmonize tourism growth with higher levels of circularity achieve systematically better overall performance than those that rely mainly on tourism flows. Implications – The study highlights the complexity of the relationship between these two sectors, underscoring the need for intersectoral coordination and long-term policies to mitigate the negative environmental impact of tourism.