This paper shows the bilateral association between tourism development and inequality in per capita availability of water. The study is conducted on the countries with high tourism receipt, and thereafter, this study shows whether the directions of tourism development in these countries are going to be sustainable or not. In order to achieve this, we have used tourism investment and tourism receipt as two indicators of tourism development and have assessed their differential impacts on the disparity in water availability by applying DOLS and causality analysis approach. Empirical results show long-run impact of tourism on inequality in per capita availability of water, along with the presence of bidirectional causal association among the tourism development and inequality parameters. This study further reveals the impact of tourism on the regional disparity in distribution of water that can appear due to the differential approach taken toward tourism development. Based on study outcomes, several policy directions where offered for the investigated blocs.
Keywords: Inequality in water availability; Theil index; Tourism development.