DO TOURISM ACTIVITIES AND ENVIRONMENTAL QUALITY INFLUENCE EACH OTHER? EVIDENCE: FIVE SUPER PRIORITY TOURISM DESTINATIONS

Abstract

This study examines the reciprocal relationship between tourism activity and environmental quality in Indonesia’s five Super Priority Tourism Destinations (DPSP). Using panel data from 2013–2024, a simultaneous equations model is estimated through the Two-Stage Least Squares (2SLS) method. This study uses the Gross Regional Domestic Product (GRDP) of the accommodation and food and beverage sector as a proxy for tourism-driven economic activity, while environmental quality is measured using the Air Quality Index (AQI). The results indicate that AQI has a positive and significant effect on tourism GRDP, indicating that better environmental quality supports tourism activity and regional economic performance. Conversely, tourism activity significantly contributes to environmental degradation, reflecting increased environmental pressure from tourist mobility and intensity. Accessibility is found to have a significant negative effect on tourism activity, while the hotel occupancy rate (TPK) has a positive and significant impact, and population density shows no significant effect. Furthermore, rainfall and investment positively and significantly influence AQI, whereas population density has a negative and significant effect, and regional government expenditure (APBD) is not statistically significant. These findings highlight the importance of integrating tourism development with environmental protection through policies such as carrying capacity management, low-emission transportation, and green investment. This study provides empirical evidence to support sustainable tourism policies that balance economic growth and environmental preservation in Indonesia’s DPSP.