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With more than 40 million tourists visiting wineries each year, wine tourism is increasingly seen as a business strategy that provides economic benefits not only for the wine industry but also for the surrounding region. These economic benefits come with the environmental cost of increasing carbon emissions. This important environmental issue, however, has received very limited attention in existing wine tourism policies, wine industry carbon footprint studies, and wine industry sustainability frameworks. In this study, we provide the first-ever macro-level carbon emission profile for wine tourism activities in Australia. Using environmentally extended input-output modelling, we offer a comprehensive picture of the carbon footprint of this growing market, showing that tourism is responsible for more than one-third of the wine industry’s carbon footprint. We also provide a tradeoff analysis that discusses the amount of emissions that are produced to earn one-dollar of revenue via wine tourism. The results demonstrate that the failure to take the carbon costs of wine tourism into account may encourage the pursuit of an unlimited growth approach to wine tourism, which will increase greenhouse gas emissions and contribute to the effects of climate change that are already being felt in the wine sector.

The double-edged sword of wine tourism: the economic and environmental impacts of wine tourism in Australia