Management of determinants of sustainable tourism development in the function of creating added value: The case of EU member states

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Abstract

The study examines how economic, environmental, and social sustainability indicators influence sustainable value added in the tourism sector across the 27 European Union (EU) member states. The research addresses the limited evidence on how sustainability inputs shape value creation in tourism, highlighted in prior work such as Trinajstić et al. (2022). The purpose is to identify which sustainability dimensions support stronger long-term performance. A dynamic panel model estimated with the two-step system generalized method of moments (GMM) method is used to control for endogeneity and country-specific effects, following the approach of Arellano and Bover (1995). The results show that fixed capital formation and tourism-related turnover increase sustainable value added. Greenhouse gas (GHG) emissions show a positive association, which reflects current transitional practices. Renewable energy use contributes to stronger sustainability outcomes. Environmental taxes and social indicators show no significant link. The study concludes that economic investment and clean-energy adoption support sustainable value creation in EU tourism. The findings are relevant for policy efforts focused on green transition and long-term sector competitiveness.

Keywords: Sustainable Tourism, Sustainable Value Added, System GMM, EU Member States, Environmental Indicators, Tourism Economics

Authors’ individual contribution: Conceptualization — F.B., K.G.B., and E.F.; Methodology — F.B., K.G.B., and E.F.; Investigation — F.B., K.G.B., and E.F.; Resources — F.B., K.G.B., and E.F.; Writing — F.B., K.G.B., and E.F.; Supervision — F.B., K.G.B., and E.F.; Funding Acquisition — F.B., K.G.B., and E.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C33, L83, Q56

Received: 27.07.2025
Revised: 17.11.2025; 12.01.2026
Accepted: 23.01.2026
Published online: 27.01.2026

How to cite this paper: Beha, F., Brajshori, K. G., & Fejza, E. (2026). Management of determinants of sustainable tourism development in the function of creating added value: The case of EU member states. Corporate Governance and Sustainability Review, 10(1), 160–168. https://doi.org/10.22495/cgsrv10i1p14