Nota di Lavoro, Fondazione Eni Enrico Mattei 145.2005
As tourism is becoming one of the most important sectors of the world economy, the number of small islands trying to develop a competitive tourist activity is increasing and this strategy appears as growth enhancing. In most cases, it is built on the environmental quality of the destination but also on lodging infrastructures and related services that tourists deserve in order to enjoy a good experience. This paper explores the inter-temporal trade-off between tourist investments and environmental quality preservation needed to ensure population revenues in the long run. It highlights possible cyclical evolution of environmental quality, tourist infrastructures, investments and tourist frequentation.