The purpose of this study is to examine the impact of tourist spending and the growth of Oman’s tourism industry on the country’s GDP from 1996 to 2018. The study uses the error correction model and other tests for assessing the link among variables, such as the cointegration test and the Granger causality test, to accomplish its aims. Findings from the error correlation model and cointegration test show that there is a link between the variables in Oman over the long and short term. There is a positive and statistically significant relationship between tourist expenditures and economic growth, as well as a negative and statistically significant relationship between tourism expansion and economic growth. We now use ARDL regression estimators to assess the robustness of the empirical results. There is no evidence of a direct relationship between increased tourism and GDP growth, according to the study’s results. According to the research, sustainable tourism development is an achievable economic growth driver, and Oman should prioritize economic policies that support this trend.

This study investigates the impact of tourism and institutional quality on environmental preservation, utilizing principal component analysis to generate three composite indices of environmental sustainability for 134 countries from 2002 to 2020. The results reveal that environmental sustainability indices have generally improved in lower- and middle-income nations but have declined in certain high-income countries. The findings also underscore the critical role of institutional quality—particularly regulatory standards, government effectiveness, anti-corruption efforts, and adherence to legal frameworks—in promoting environmental sustainability. However, the study shows that both domestic and international tourism expenditures can have adverse effects on environmental sustainability. Notably, these negative effects are exacerbated in countries with well-developed institutions, which is an unexpected outcome. This highlights the need for careful, thoughtful policymaking to ensure that the tourism sector supports sustainable development, rather than undermining environmental objectives.