An Introduction to Economic Impact Analysis
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Ennew, C. 2003. Understanding the Economic Impact of Tourism. Discussion Paper 2003/5. Nottingham, UK: Tourism and Travel Research Institute, University of Nottingham. Web Link.
This paper situates economic impact analysis within the context of tourism impact on the economy, society and environment. The dominant motive for the development of tourism is economic but such developments incur costs elsewhere. If governmental and non-governmental organizations are to make sensible and rational decisions with respect to the current and future development of tourism, they must have reliable information on its costs and benefits. This paper examines the main economic costs and benefits associated with tourism and highlights the difficulties associated with their measurement. It examines the role played by tourism satellite accounts in providing a consistent and reliable source of information on the economic dimensions of tourism at the macro scale. It also compares on contrasts the use of input-output modelling with computable general equilibrium modelling (CGE). CGE modelling may be more accurate and provide a better understanding of the nature of the impact of external shocks and policy changes.
Crompton, J. L. 1999. Measuring the Economic Impact of Visitors to Sports Tournaments and Special Events. Ashburn, National Recreation and Park Association. Web Link.
This book deals with the general subject of economic impact analysis, but in particular sports tournaments and festival and spectator events. The book reviews the subject of economic impact analysis and pays particular attention to some of the pitfalls that the economic impact literature can fall into and illustrates the erroneous results that can result. It discusses appropriate methods of data collection and analysis, and reviews the results of 30 economic impact studies.
Stynes, D. 1999. Economic Impacts of Tourism. East Lansing, MI: Department of Park, Recreation & Tourism Resources, Michigan State University. Web Link.
This paper provides an a review of the field of tourism economic impact analysis. It distinguishes economic impact analysis from other types of economic analysis that might be carried out in tourism research. Specifically, economic impact analysis traces the flows of spending associated with tourism activity in a region to identify changes in sales, tax revenues, income and jobs due to tourism activity. The principal methods this paper identifies are spending surveys, analysis of secondary data from government economic statistics, economic base models, input-output models and multipliers.
Wilson, K. 1998. "Market / Industry Confusion in Tourism Economic Analyses." Annals of Tourism Research 25(4):803-817.
This paper looks at the issue of economic impact of tourism in light of the considerable debate over whether tourism is in fact an industry or a market. Given the economic definition of an industry, the author concludes that tourism is in fact not an industry, and that industry-based tools of economics are relevant to an analysis of tourism only under clearly stated assumptions. In many instances the author argues tourism generates events which in turn may be analyzed as market-based activities. For example, adventure, heritage, or cultural tourism all generate events embodied in market activity. The products provided in these markets will come from a range of industries where the tourism-based market demand for the firms' products may vary in size and importance.
Fletcher, J. E. 1993. The Economic Impact of Tourism. Tourism: Principles & Practice. Chris Cooper, John E. Fletcher, David Gilbert and Stephen Wanhill (ed.), London, Pitman Publishing: 108-129.
This book chapter provides a good general overview of the topic of economic impact analysis in tourism. It begins with a discussion of the global tourism industry, the economic impact of tourism to different national economies and employment in the tourism industry. It then reviews the basic methods for measuring tourism impact including Keynesian multiplier models and input-output models.
Hustedde, R., R. Shaffer and G. Pulver. 1993. Community Economic Analysis: A How to Manual. Revised Edition. Ames, IA: North Central Regional Center for Rural Development.
This how to manual brings together a variety of techniques that can assist an individual in analyzing a community's economy. The manual is presented in an easy to read format. A series of questions are posed to understand why a particular method might be used, how it is used, and how its results can be interpreted. In addition, there are examples which illustrate each method. The methods which are presented include: multipliers, trade area analysis, location quotients, and shift share analysis. There is a discussion of economic development strategies as well which places the use of these techniques in context.
Fleming, W. R. and L. Toepper. 1990. "Economic Impact Studies: Relating the Positive and Negative Impacts to Tourism Development." Journal of Travel Research 29(1): 35-42.
This paper looks at the general field of economic impact studies in tourism and examines the uses and usefulness of this type of study. It examines briefly the methodology of economic impact studies and pays particular attention to distinguishing between the measurement of positive and negative impacts. As public dollars are being used for tourism promotion credible and accurate economic impact studies are increasingly important as the level of public scrutiny increases. The article suggests that there is a growing sentiment within the economic impact research arena for the development of new approaches that better capture direct and indirect economic impacts such as opportunity costs, environmental costs, and social costs.
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