Tourism, smallness and insularity: a suitable combination for quality of life in Small Island Developing States (SIDS)?

Abstract

As Small Island Developing States (SIDS) turn into a focus of attention for tourists and foreign investment, tourism becomes one of the primary sources of wealth in these economies. This increasing relevance of tourism in SIDS in turn becomes an opportunity not only to enhance the residents’ quality of life but also to combat the existing vulnerabilities of SIDS. The main goal of this research is to measure the effects of tourism on the quality of life of residents in SIDS according to: 1) the degree of tourism development, 2) the allocation of public and private resources to promote the tourism sector, and 3) the direct opportunities that tourism offers to the populations in SIDS. In order to do so, an empirical analysis has been carried out based on a panel database containing data from 28 SIDS during the period 2005-2016. The findings suggest that tourism development becomes a driving force for enhancing the residents’ quality of life. It is also proven that government expenditure has a positive effect on the population, with a repercussion four times greater than that of private investment. Finally, work precarity appears to be a reality in SIDS.