Environmental management of Tropical North Queensland’s natural environment
has two effects on the competitiveness of the region’s tourism industry as measured
by the industry’s aggregate profitability. While it affects tourism businesses’ operating
costs, it also has an effect on tourists’ demand for visiting the destination.
This conceptual structure is a departure from the traditional consideration of only
the compliance cost effect of imposed environmental regulations. In addition to the
incorporation of demand effects, it includes the associated voluntary environmental
management activities by the region’s tourism industry.
The expected overall impact of the combined public and private environmental
management framework in Tropical North Queensland has been estimated in