Advances in Management and Applied Economics

Measuring the Multiplier Effects of Tourism industry to the Economy

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  • Abstract

    The discussion and the empirical investigations presented in this article are part of the goal to implement the specific actions necessary for the economic evaluation of the impacts of tourism based on the conceptual and methodological standards of Tourist Satellite Accounts (TSAs) as formalised by the World Tourism Organisation (WTO), the United Nations Statistics Division and the OECD. First, we summarise the essential concepts and definitions relating to the macroeconomic impact of tourism; then, we offer a brief summary of the corpus of literature dedicated to assessing the importance of the tourism industry in the economies of the French Overseas Departments, in particular in the case of Guadeloupe. Secondly, we demonstrate that the theoretical framework of SAM modelling provides a particularly appropriate approach to conducting a detailed analysis of the repercussions of tourism in terms of its direct, indirect and induced effects across the various branches of the economy. Since Guadeloupe does not at present have an official system of Tourism Satellite Accounts, we propose to adopt the Social Accounting Matrix (SAM) as an alternative approach in order to establish results capable of filling this information deficit. Alongside the macroeconomic analyses of TSA-type tourism activities that have been conducted for Réunion and Martinique, and also alongside the TSA development programmes currently in progress for various CARICOM countries, the studies presented in this contribution are intended to offer elucidation of a similar nature on the measurement of the impact of tourism on the Guadeloupe economy.

    JEL classification numbers: L83
    Keywords: Impact of tourism, input-output table, social accounting matrix,
    tourism satellite account