Artificial intelligence (AI) interacted ESG-based sustainable tourism: Economic insights

Tourist activities impact ESG (environmental, social, governance) factors, but a combined metric is lacking in tourism and sustainability literature. This study introduces the ESG/International Tourist Arrivals (ESG/ITA) metric, quantifying environmental burdens per tourist and assessing tourism sustainability. The study employs linear regression techniques, including IV-GMM, and nonlinear methods like panel quantile regression across 27 European countries. It investigates the effects of ESG/ITA and AI-Interacted ESG-Based Sustainable Tourism (ESG/ITA*AI) on real GDP per capita. Findings show that while ESG/ITA negatively affects GDP per capita, incorporating artificial intelligence (AI) enhances its positive influence. Finland and Sweden perform well on ESG/ITA, whereas Germany and France lag on ESG/ITA*AI. The study suggests AI can help balance sustainability and economic performance, offering a valuable tool for policymakers.