Pilgrimage Tourism, Economic growth & Energy consumption: Their Impact on Carbon Emission in Saudi Arabia

Abstract

Saudi Arabia’s Vision 2030 focuses on economic diversification and includes initiatives to enhance the pilgrimage experience for religious tourists while reducing CO2 emissions. Given the environmental challenges posed by tourism—particularly pilgrimage tourism—there is limited research on its impact on environmental change. This study addresses that gap by analysing the relationships between CO2 emissions, energy consumption, economic growth, and pilgrimage tourism in Saudi Arabia, using annual time series data from 1996 to 2022. Employing the Vector Error Correction Model (VECM) and the Granger causality test, the results confirm significant long-term associations among these variables. The Johansen cointegration test shows a positive link between energy consumption and GDP growth, although an increase in pilgrim arrivals negatively affects carbon emissions. Specifically, as CO2 levels increase, pilgrimage tourism growth declines by 0.07%, indicating a negative cointegration effect. The VECM results suggest that economic growth and increased energy consumption awareness reduce carbon emissions, highlighting the potential of a circular carbon economy (CCE) consistent with the Paris Agreement and Sustainable Development Goals (SDGs). However, pilgrimage tourism still contributes significantly to carbon emissions. These findings offer crucial policy implications for managing environmental concerns within the Vision 2030 framework.