5. Concluding remarks
Usually, tourism industry is considered as a supportive industry and plays a substantial role in the improvement of the society at different stages and is perceived as an imperative step to accomplish sustainable development. This study aimed to empirically explore the effect of tourism by the total number of arrivals in the host country per year for three ASEAN countries namely Malaysia, Singapore and Thailand over the period of 1990–2014. The Zivot–Andrews test has been employed for the unit-root and presence of structural break in the data. Results showed that CO2 emission per capita is characterized as unit-root for all three countries, indicating that current CO2 emission level is significantly influenced by lagged CO2 emission. Nevertheless, CO2 emission is stationary after taking first difference.
The FMOLS results reveal that regressor GDP has significantly positive relationship with environmental pollution (CO2 emissions), while the square of GDP found is negatively and significantly associated with environmental pollution in the case of Malaysia. These results imply that Environmental Kuznets Curve hypothesis is valid for Malaysian context during the period under the study. Positive and statistically significant coefficient of tourism indicates that tourism degrades environment by augmenting environmental pollution in Malaysia. This finding indicates that inward flow of tourists in Malaysia significantly augment energy use, hence environmental pollution. In case of Singapore, the estimated coefficient of tourism variable is negative and statistically significant, implying that tourism improves environmental pollution by reducing CO2 emission in Singapore. The impact of GDP on environmental pollution is positive but statistically insignificant, while GDP square is negatively and significantly associated with environmental pollution.