Promoting firms’ sustainability in tourism planning through employment

Abstract

In Portugal, several municipalities invest in onerous campaigns to at-tract tourists with a view to obtaining positive effects for their local economies. But from the point of view of job creation, do these costs payoff? Thus, this study tests the impact of various independent variables, including the demand of resident tourists and the share of foreign participation on touristic activities on job creation in Northern Portugal in 2009-2017. Based on data from SABI database, it employs a GLS estimator to regress the employment changes on the number of firms, sales, touristic demand from residents, share of foreign tourists, labour productivity and the number of years of firm operations. Results show negative significant impacts of the share of foreign tourists on job creation in small nature tourism firms, and in large cultural and nautical tourism firms. These results sup-port previous findings for Portugal.