Economic Impact Analysis - Satellite Accounts
Methodology  -  Lake State Examples - Other Examples         
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Methodology:

Smith, S. L. J. 2004. The Measurement of Global Tourism: Old Debates, New Consensus and Continuing Challenges. A Companion to Tourism. Alan A. Lew, C. Michael Hall and Allan M. Williams (ed.), Malden, Blackwell Publishing Ltd.

This chapter looks at the challenge of defining tourism and the lack of real discernible "tourism industry". Given this, the measurement of the economic impact of tourism is fraught with challenges. The concept and practice of Tourism Satellite Accounts (TSAs) as arisen out of the need to have standardized international measurement of a sector which is hard to define. The nuances of the definitions applied in TSAs is discussed and its implications for tourism research evaluated.

Commission of the European Communities, Organisation for Economic Co-operation and Development, World Tourism Organisation and United Nations Statistics Division. 2001. Tourism Satellite Account: Recommended Methodological Framework. OECD Statistics, Resources & Methods vol. 2001, no. 2. Web link.

The recommendations contained in the publication are based on a common conceptual framework for the design of the Tourism Satellite Account (TSA). The structure of the TSA is based on the general balance existing within an economy between the demand for products generated by tourism and their supply. The idea behind the TSA is to analyze in detail all aspects of the demand for goods and services which might be associated with tourism in the economy; to observe the operational interface with the supply of such goods and services within the same economy of reference; and to describe how this supply interacts with other economic activities.

Organisation for Economic Co-operation and Development. 2000. Measuring the Role of Tourism in OECD Economies: The OECD Manual on Tourism Satellite Accounts and Employment. OECD Employment vol. 2000, no. 10. Organisation for Economic Co-operation and Development. Web link.

This report outlines the rationale underlying the Tourism Satellite Accounts (TSAs) and summarizes the efforts that have been made worldwide to develop this methodology. The TSAs are designed for use in analyzing tourism and tourism-related employment in a standardized global system. The TSAs are based on the most recent international statistical trends, particularly the System of National Accounts of 1993, and the World Tourism Organisation and United Nations 1993 definitions on tourism statistics.

Smith, S. L. J. 2000. "Measurement of Tourism's Economic Impacts." Annals of Tourism Research 27(2):530-531.

This conference report details the results of a discussion on Tourism Satellite Accounts (TSAs) held in Nice, France in 1999 at a World Tourism Organization (WTO) conference. TSAs, which are standardized way of dipping into a country's National Accounts, are now relatively well-defined, but much remains to be done refine and extend their application. At the conclusion of the conference, a number of resolutions were approved: that TSAs will be the internationally-accepted method for measuring the size of tourism as an area of economic activity; that the provisional Standard Industrial Classification of Tourism Activities (SICTA) and the Tourism Product Code (TPC) will be refined and harmonized; and that the WTO and Organization for Economic Cooperation and Development (OECD) are to work towards a unified approach to be submitted to the UN Committee of Statistical Experts for approval.

Ellard, A., K. A. Cheek and N. P. Nickerson. 1999. Missoula Case Study: Direct Impact of Visitor Spending on a Local Economy. Research Report 65. Missoula, MT, Institute for Tourism and Recreation Research, School of Forestry, University of Montana. Web Link.

This study uses tourism satellite accounts (TSA) to estimate county level direct economic impact of tourism in Missoula County, Montana. Limited survey data of local businesses is used to modify the national TSA ratios to be more reflective of Missoula County tourism dynamics. The researchers suggest more investigation is needed to improve and refine this model.

Lake States Examples:

Other Examples:

Blake, A., R. Durbarry, M. T. Sinclair and G. Sugiyarto. 2001. Modelling Tourism and Travel using Tourism Satellite Accounts and Tourism Policy and Forecasting Models. Discussion Paper 2001/4. Nottingham, UK: Tourism and Travel Research Institute, University of Nottingham. Web link

This paper documents the results of research using the Nottingham Tourism Policy and Forecasting (TPF) model, to analyze tourism in the United States. This model is based on Computable General Equilibrium (CGE) modeling techniques and incorporates Tourism Satellite Accounts (TSAs) as the fundamental data input. The paper provides a detailed description of the structure, equations and scope of the model. TSAs are used to measure the size of the tourism economy while traditional input-output models go some way towards measuring the total economic impact of tourism. CGE modeling, and the Nottingham TPF in particular, allow for a more comprehensive analysis of tourisms economic impact. The Nottingham TPF model can also be used to answer "what-if" policy simulations or be used in tourism forecasting. The authors illustrate three uses of the TPF model: a 10% increase in foreign expenditures on tourism; a 10% increase in Air Transport Productivity; and the removal of indirect taxes and replacing them with non-distorting taxes.

Dueck, C. B. and L. Zhao. 1998. Government Revenue Attributable to Tourism, 1998. Ottawa, ON: Canadian Tourism Commission, Statistics Canada. Web link

This paper uses the Canadian Provincial and Territorial Satellite Account, input-output tables and tax remittance files to provide a estimate of government revenue generated by the tourism industry in 1998. The study concludes that for every dollar of tourism spending ($45.9 billion in 1998) governments in Canada raised 30.1 cents. The revenue was divided 14.8 cents to the federal government, 13.6 cents to the provincial governments and 1.8 cents to municipal governments. Sales tax were the largest generator of revenue with income tax on employment incomes and business profits the second most important source.

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