IDEAS home Printed from https://ideas.repec.org/a/eee/anture/v52y2015icp148-160.html
   My bibliography  Save this article

The economic impact of tourism in SIDS

Author

Listed:
  • Pratt, Stephen

Abstract

Small Island Developing States (SIDS) are faced with many challenges to economic development. Tourism is seen as a viable, and sometimes, only means of economic growth. This research compares the economic impact of tourism to seven SIDS. The research employs input output analysis, linkage analysis and a CGE model to assess the macroeconomic and sectoral impacts of increased tourism in these islands. The findings show that the transportation sector remains a key sector. The tourism income multipliers show that tourism generates a large amount of economic activity but the income that remains in the destinations is often very small. The results show that taking advantage of economies of scale maybe a way to maximize the benefits from tourism.

Suggested Citation

  • Pratt, Stephen, 2015. "The economic impact of tourism in SIDS," Annals of Tourism Research, Elsevier, vol. 52(C), pages 148-160.
    • Handle: RePEc:eee:anture:v:52:y:2015:i:c:p:148-160
    DOI: 10.1016/j.annals.2015.03.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160738315000468
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.annals.2015.03.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen Pratt, 2013. "Estimating Tourism Impacts Using Cge Models: A Historical Review And Future Developments," World Scientific Book Chapters, in: Clement A Tisdell (ed.), Handbook of Tourism Economics Analysis, New Applications and Case Studies, chapter 21, pages 471-492, World Scientific Publishing Co. Pte. Ltd..
    2. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March.
    3. Stephen Pratt, 2012. "Tourism Yield of Different Market Segments: A Case Study of Hawaii," Tourism Economics, , vol. 18(2), pages 373-391, April.
    4. Clemente Polo & Elisabeth Valle, 2008. "An Assessment of the Impact of Tourism in the Balearic Islands," Tourism Economics, , vol. 14(3), pages 615-630, September.
    5. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521766968, December.
    6. Robinson, Sherman, 1991. "Macroeconomics, financial variables, and computable general equilibrium models," World Development, Elsevier, vol. 19(11), pages 1509-1525, November.
    7. Shina Li & Adam Blake & Chris Cooper, 2011. "Modelling the Economic Impact of International Tourism on the Chinese Economy: A CGE Analysis of the Beijing 2008 Olympics," Tourism Economics, , vol. 17(2), pages 279-303, April.
    8. Blake, Adam & Arbache, Jorge Saba & Sinclair, Thea & Teles, Vladimir Kuhl, 2010. "Tourism and poverty relief," Textos para discussão 237, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    9. Jeroen Klijs & Wim Heijman & Diana Korteweg Maris & Jeroen Bryon, 2012. "Criteria for Comparing Economic Impact Models of Tourism," Tourism Economics, , vol. 18(6), pages 1175-1202, December.
    10. Riaan Rossouw & Melville Saayman, 2011. "Assimilation of Tourism Satellite Accounts and Applied General Equilibrium Models to Inform Tourism Policy Analysis," Tourism Economics, , vol. 17(4), pages 753-783, August.
    11. Malcolm Beynon & Calvin Jones & Max Munday, 2009. "The Embeddedness of Tourism-related Activity: A Regional Analysis of Sectoral Linkages," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2123-2141, September.
    12. Robertico R. Croes & Denver E. Severt, 2007. "Research Report: Evaluating Short-Term Tourism Economic Effects in Confined Economies – Conceptual and Empirical Considerations," Tourism Economics, , vol. 13(2), pages 289-307, June.
    13. Burfisher,Mary E., 2011. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9780521139779, December.
    14. Stephen Pratt, 2014. "A General Equilibrium Analysis of the Economic Impact of a Devaluation on Tourism: The Case of Fiji," Tourism Economics, , vol. 20(2), pages 389-405, April.
    15. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
    16. Clemente Polo Andrés & Elisabeth Valle Valle, 2007. "An Assessment of the Weight of Tourism in the Balearic Islands," CRE Working Papers (Documents de treball del CRE) 2007/04, Centre de Recerca Econòmica (UIB ·"Sa Nostra"), revised Jan 2007.
    17. Schubert, Stefan Franz & Brida, Juan Gabriel & Risso, Wiston Adrián, 2011. "The impacts of international tourism demand on economic growth of small economies dependent on tourism," Tourism Management, Elsevier, vol. 32(2), pages 377-385.
    18. Adam Blake, 2008. "Economic Modelling of Tourism," Tourism Economics, , vol. 14(4), pages 669-671, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    2. MASSIANI, Jérôme, 2022. "Computable General Equilibrium assessment of mega-events: Issues and possible solutions," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 920-942.
    3. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    4. Li, ShiNa & Blake, Adam & Thomas, Rhodri, 2013. "Modelling the economic impact of sports events: The case of the Beijing Olympics," Economic Modelling, Elsevier, vol. 30(C), pages 235-244.
    5. Li, ShiNa & Li, Hengyun & Song, Haiyan & Lundberg, Christine & Shen, Shujie, 2017. "The economic impact of on-screen tourism: The case of The Lord of the Rings and the Hobbit," Tourism Management, Elsevier, vol. 60(C), pages 177-187.
    6. Andrés Artal-Tur & José Miguel Navarro-Azorín & José María Ramos-Parreño, 2020. "Measuring the economic contribution of tourism to destinations within an input-output framework: some methodological issues," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(3), pages 243-265, September.
    7. Carrascal Incera, André & Fernández, Melchor Fernández, 2015. "Tourism and income distribution: Evidence from a developed regional economy," Tourism Management, Elsevier, vol. 48(C), pages 11-20.
    8. Armindo Frias & João Cabral & à lvaro Costa, 2015. "Logistic optimization in tourism networks," ERSA conference papers ersa15p1451, European Regional Science Association.
    9. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    10. Wang, X. & Dietrich, J.P. & Lotze-Campen, H. & Biewald, A. & Munson, T.S. & Muller, C., 2018. "Trading More Food in the Context of High-end Climate Change: Implications for Land Displacement through Agricultural Trade," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276997, International Association of Agricultural Economists.
    11. Mario A. Fernandez & Adam J. Daigneault, 2018. "Money Does Grow On Trees: Impacts Of The Paris Agreement On The New Zealand Economy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-23, August.
    12. Irina Klytchnikova & Paul Dorosh, 2013. "Tourism sector in Panama: Regional economic impacts and the potential to benefit the poor," Natural Resources Forum, Blackwell Publishing, vol. 37(2), pages 70-79, May.
    13. Oscar Bajo-Rubio & Antonio G. Gómez-Plana, 2015. "Alternative strategies to reduce public deficits: Taxes vs. spending," Journal of Applied Economics, Universidad del CEMA, vol. 18, pages 45-70, May.
    14. Ramón E. Key-Hernández & Claudina Villarroel, 2014. "Domestic impact of production cuts in OPEC countries: The cases of Nigeria and Venezuela," EcoMod2014 7007, EcoMod.
    15. Rose, Adam & Chen, Zhenhua & Wei, Dan & Prager, Fynn, 2015. "Estimating the Macroeconomic Impacts of U.S. Anti-Dumping Enforcement," Conference papers 332572, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Orlov, Anton, 2015. "An assessment of optimal gas pricing in Russia: A CGE approach," Energy Economics, Elsevier, vol. 49(C), pages 492-506.
    17. Leone Walters & Heinrich R. Bohlmann & Matthew W. Clance, 2016. "The Impact of the COMESA-EAC-SADC Tripartite Free Trade Agreement on the South African Economy," Working Papers 201669, University of Pretoria, Department of Economics.
    18. J. Edward Taylor, 2012. "A Methodology for Local Economy-Wide Impact Evaluation (LEWIE) of Cash Transfers," Working Papers 99, International Policy Centre for Inclusive Growth.
    19. Chiedza L. Muchopa, 2021. "Economic Impact of Tariff Rate Quotas and Underfilling: The Case of Canned Fruit Exports from South Africa to the EU," Economies, MDPI, vol. 9(4), pages 1-17, October.
    20. Edward J. Balistreri & Zoryana Olekseyuk, 2021. "Economic Impacts of Investment Facilitation," Center for Agricultural and Rural Development (CARD) Publications 21-wp615, Center for Agricultural and Rural Development (CARD) at Iowa State University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:anture:v:52:y:2015:i:c:p:148-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/annals-of-tourism-research/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.