How does water and air pollution affect the tourism industry?

These 2 have similarities but air and water are 2 different topics.
Water pollution results in aciditation and warming of water, this has major environemtal consequences, like dying coral reefs and unbalanced eco systems.

Therefore certain destination will decrease in popularity, this can have massive economic consequences.
Also think of the regulations that arose because of the water pollution problems for for instance the cruise industry:

• International Convention for the Prevention
of Pollution from Ships (MARPOL)
• Safety of Life at Sea Convention (SOLAS)
• International Convention on Standards of
Training, Certification and Watchkeeping for
Seafarers (STCW)
United States-
• Title VII Certain Alaskan
Cruise Ship Operations
• Clean Water Act
• Oil Pollution Act
• Resource Conservation and Recovery Act
• Ocean Dumping Act
• Garbage and Refuse Protection Act
• Act to Prevent Pollution from Ships
• Marine Mammal Protection Act ICCL. (2012).

When water is polluted the clean water reserves decline, food would not be able to be watered and therefore increase in price. Money for vacation would be less.

Polluted water and air increase chances of diseases and the chance of unhealthy food growth.

With polluted air I am not so familiar at the moment.

However there are opportunities for the hospitality to go green. Hospitality industry is one of the most active industries in this regard. The tourism industry accounts for 1% of total CO2 emissions and working hard to get this down (green keys, LEEDS certification, Water programs national and international)