The tourism sector is vital for the development of small island developing states. However, climate change can negatively impact on tourism demand and affect these economies both on the economic and social level. The purpose of this study is to investigate the relationship between climate change and tourism demand in 20 small island developing states (SIDS) from 1995 to 2015. Using panel autoregressive distributed lag model based on two alternative estimators such as mean group estimator (MG) and pooled mean group (PMG), it was found that there is a significant relationship between climate change and tourism demand in the long-run for the selected SIDS. Further analysis of the results shows a bi directional causality between tourism demand and real GDP.

Fauzel, Seetanah, Sannassee & Nunkoo, Investigating the impact of climate change on the tourism sector of SIDS.pdf