The coming-of-age of tourism: embracing new economic models

Abstract

Purpose: The purpose of this paper is to re-examine the economic models and assumptions that have given rise to current day tourism. It suggests alternate models based on new values to help tourism emerge from the current COVID crisis and “come-of-age.” Design/methodology/approach: The paper delineates the assumptions of neoliberal economics upon which much of tourism has been based. It then summarizes the work of progressive economists in developing new models that value capital other than financial. Six of these models are briefly described and applied to tourism. Findings: Some assumptions underlying the neoliberal economic model that need re-examining are the ideas that: self-interest drives ideal economic behavior; success comes from competition, not cooperation; encouraging consumption for its own sake; giving owners priority over other stakeholders; and more income translates into more happiness. Redesign of economic systems requires consideration of social capital, natural capital, intellectual capital, compassion capital, trust capital and spiritual capital to name a few. Examples of alternate systems using these capitals are the collaborative economy, the circular economy, the creative economy, the gift economy, the sacred economy and the regenerative economy. Originality/value: The paper’s approach is to interlace modern economic thought with the future maturation of tourism and to suggest that tourism policymakers and leaders learn from these thinkers to create a new model for the future of tourism.