IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v23y2017i1p29-48.html
   My bibliography  Save this article

Tourism’s potential to benefit the poor

Author

Listed:
  • Robertico Croes

    (University of Central Florida, USA)

  • Manuel A. Rivera

    (University of Central Florida, USA)

Abstract

The study examines the distributional effects of tourism expansion applying a social accounting matrix model to the case of Ecuador. Specifically the study examines what share of tourism expansion benefits poor people. The study finds that tourism has large multiplier effects on the Ecuadorian economy and has the potential for substantial benefits to the poor. The study also found that distributional effects of tourism development are spread across all household incomes in both urban and rural areas benefiting the lowest and low households the most. Tourism has the potential of reducing inequality and is pro-poor in the case of Ecuador. Benefits to the poor seem to hinge on how and where tourists spend their money.

Suggested Citation

  • Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    • Handle: RePEc:sae:toueco:v:23:y:2017:i:1:p:29-48
    DOI: 10.5367/te.2015.0495
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2015.0495
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2015.0495?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
    ---><---

    References listed on IDEAS

    as
    1. Benković, Andreja & Mejía, Juan Felipe, 2008. "Tourism as a driver of economic development: The Colombian experience," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 26/2008, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    2. Ramesh Durbarry, 2004. "Tourism and Economic Growth: The Case of Mauritius," Tourism Economics, , vol. 10(4), pages 389-401, December.
    3. Tadayuki Hara, 2012. "Introduction to Tourism Satellite Accounts," Chapters, in: Murat Kasimoglu (ed.), Strategies for Tourism Industry - Micro and Macro Perspectives, IntechOpen.
    4. Javier Capó Parrilla & Antoni Riera Font & Jaume Rosselló Nadal, 2005. "Dutch Disease in Tourism Economies. Evidence from Spain," CRE Working Papers (Documents de treball del CRE) 2005/01, Centre de Recerca Econòmica (UIB ·"Sa Nostra"), revised Jan 2005.
    5. Paresh Kumar Narayan, 2004. "Economic Impact of Tourism on Fiji's Economy: Empirical Evidence from the Computable General Equilibrium Model," Tourism Economics, , vol. 10(4), pages 419-433, December.
    6. Pernia, Ernesto & Kakwani, Nanak, 2000. "What is Pro-poor Growth?," MPRA Paper 104987, University Library of Munich, Germany.
    7. Jacint Balaguer & Manuel Cantavella-Jorda, 2002. "Tourism as a long-run economic growth factor: the Spanish case," Applied Economics, Taylor & Francis Journals, vol. 34(7), pages 877-884.
    8. Sam Jones, 2010. "The economic contribution of tourism in Mozambique: Insights from a Social Accounting Matrix," Development Southern Africa, Taylor & Francis Journals, vol. 27(5), pages 679-696.
    9. Irina I. Klytchnikova & Paul A. Dorosh, 2009. "How Tourism Can (and Does) Benefit the Poor and the Environment - A Case Study from Panama," World Bank Publications - Reports 10237, The World Bank Group.
    10. Robertico Croes, 2014. "The Role of Tourism in Poverty Reduction: An Empirical Assessment," Tourism Economics, , vol. 20(2), pages 207-226, April.
    11. Larry Dwyer & Peter Forsyth & Ray Spurr, 2003. "Inter-Industry Effects of Tourism Growth: Implications for Destination Managers," Tourism Economics, , vol. 9(2), pages 117-132, June.
    12. Modeste, Nelson C., 1995. "The Impact of Growth in the Tourism Sector on Economic Development: The Experience of Selected Caribbean Countries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 48(3), pages 375-385.
    13. Rojas, Mariano, 2008. "Experienced Poverty and Income Poverty in Mexico: A Subjective Well-Being Approach," World Development, Elsevier, vol. 36(6), pages 1078-1093, June.
    14. World Bank, 2007. "Nutritional Failure in Ecuador : Causes, Consequences, and Solutions," World Bank Publications - Books, The World Bank Group, number 6651, December.
    15. Vanegas Sr., Manuel & Croes, Robertico, 2007. "Tourism, Economic Expansion and Poverty in Nicaragua: Investigating Cointegration and Causal Relations," Staff Papers 7306, University of Minnesota, Department of Applied Economics.
    16. Melville Saayman & Riaan Rossouw & Waldo Krugell, 2012. "The impact of tourism on poverty in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 29(3), pages 462-487, September.
    17. Tiago Neves Sequeira & Paulo Macas Nunes, 2008. "Does tourism influence economic growth? A dynamic panel data approach," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2431-2441.
    18. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    19. Nishaal Gooroochurn & Adam Blake, 2005. "Tourism Immiserization: Fact or Fiction?," Working Papers 2005.143, Fondazione Eni Enrico Mattei.
    20. M. Thea Sinclair, 1998. "Tourism and economic development: A survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(5), pages 1-51.
    21. Bharat R. Hazari & J. J. Nowak & M. Sahli & D. Zdravevski, 2003. "Tourism And Regional Immiserization," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 269-278, October.
    22. Nikolaos Dritsakis, 2004. "Tourism as a Long-Run Economic Growth Factor: An Empirical Investigation for Greece Using Causality Analysis," Tourism Economics, , vol. 10(3), pages 305-316, September.
    23. Wattanakuljarus, Anan & Coxhead, Ian, 2008. "Is tourism-based development good for the poor?: A general equilibrium analysis for Thailand," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 929-955.
    24. 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).
    25. Akkemik, K. Ali, 2012. "Assessing the importance of international tourism for the Turkish economy: A social accounting matrix analysis," Tourism Management, Elsevier, vol. 33(4), pages 790-801.
    26. R. Brau & A. Lanza & F. Pigliaru, 2006. "How fast are small tourist countries growing? The 1980-2003 evidence," Working Paper CRENoS 200614, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    27. Edwin Muchapondwa & Jesper Stage, 2013. "The economic impacts of tourism in Botswana, Namibia and South Africa: Is poverty subsiding?," Natural Resources Forum, Blackwell Publishing, vol. 0(2), pages 80-89, May.
    28. William Maloney & Gabriel V. Montes Rojas, 2005. "How elastic are sea, sand and sun? Dynamic panel estimates of the demand for tourism," Applied Economics Letters, Taylor & Francis Journals, vol. 12(5), pages 277-280.
    29. Brau, Rinaldo & Lanza, Alessandro & Pigliaru, Francesco, 2007. "How Fast are Small Tourism Countries Growing? Evidence from the Data for 1980–2003," MPRA Paper 82776, University Library of Munich, Germany.
    30. Ghali, Moheb A, 1976. "Tourism and Economic Growth: An Empirical Study," Economic Development and Cultural Change, University of Chicago Press, vol. 24(3), pages 527-538, April.
    31. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    32. Juan Luis Eugenio-Martín & Noelia Martín Morales & Riccardo Scarpa, 2004. "Tourism and Economic Growth in Latin American Countries: A Panel Data Approach," Working Papers 2004.26, Fondazione Eni Enrico Mattei.
    33. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2007. "How Fast are Small Tourism Countries Growing? Evidence from the Data for 1980–2003," Tourism Economics, , vol. 13(4), pages 603-613, December.
    34. Jean-Jacques Nowak & Mondher Sahli & Pasquale M. Sgro, 2003. "Tourism, Trade And Domestic Welfare," Pacific Economic Review, Wiley Blackwell, vol. 8(3), pages 245-258, October.
    35. Paul Winters & Leonardo Corral & Adela Moreda Mora, 2013. "Assessing the Role of Tourism in Poverty Alleviation: A Research Agenda," Development Policy Review, Overseas Development Institute, vol. 31(2), pages 177-202, March.
    36. 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.
    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. Namhyun Kim & HakJun Song & Ju Hyun Pyun, 2016. "The relationship among tourism, poverty, and economic development in developing countries," Tourism Economics, , vol. 22(6), pages 1174-1190, December.
    2. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    3. Holzner, Mario, 2011. "Tourism and economic development: The beach disease?," Tourism Management, Elsevier, vol. 32(4), pages 922-933.
    4. Jorge V Pérez-Rodríguez & Heiko Rachinger & María Santana-Gallego, 2022. "Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis," Tourism Economics, , vol. 28(5), pages 1355-1376, August.
    5. Raffaele Paci & Emanuela Marrocu, 2014. "Tourism and regional growth in Europe," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 25-50, November.
    6. Vanegas Sr., Manuel & Croes, Robertico, 2007. "Tourism, Economic Expansion and Poverty in Nicaragua: Investigating Cointegration and Causal Relations," Staff Papers 7306, University of Minnesota, Department of Applied Economics.
    7. Theodore Panagiotidis & Maurizio Mussoni & Georgios Voucharas, 2023. "How Important is Tourism for Growth?," Working Paper series 23-13, Rimini Centre for Economic Analysis.
    8. Salahodjaev, Raufhon & Safarova, Nilufar, 2015. "Do foreign visitors reward post-communist countries? A panel evidence for tourism-growth nexus," MPRA Paper 66215, University Library of Munich, Germany.
    9. Jun Zhang & Li Cheng, 2019. "Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    10. Rukmani Gounder, 2022. "Tourism-led and economic-driven nexus in Mauritius: Spillovers and inclusive development policies in the case of an African nation," Tourism Economics, , vol. 28(4), pages 1040-1058, June.
    11. Theodore Panagiotidis & Thomas Panagiotou & Maurizio Mussoni, 2012. "Tourism Led Growth: Evidence from Panel Cointegration Tests," Working Paper series 74_12, Rimini Centre for Economic Analysis.
    12. Jianping Zha & Zhiyong Li, 2017. "Drivers of tourism growth," Tourism Economics, , vol. 23(5), pages 941-962, August.
    13. Sheilla Nyasha & Nicholas M. Odhiambo & Simplice A. Asongu, 2021. "The Impact of Tourism Development on Economic Growth in Sub-Saharan Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1514-1535, December.
    14. Francis Baidoo & Elikplimi Komla Agbloyor & Vera Ogeh Lassey Fiador & Nana Amaniampong Marfo, 2022. "Do countries’ geographical locations moderate the tourism-led economic growth nexus in sub-Saharan Africa?," Tourism Economics, , vol. 28(4), pages 1009-1039, June.
    15. Marrocu, Emanuela & Paci, Raffaele, 2011. "They arrive with new information. Tourism flows and production efficiency in the European regions," Tourism Management, Elsevier, vol. 32(4), pages 750-758.
    16. Younesse El Menyari, 2017. "International tourism and long-term economic growth: Analysis by heterogeneous dynamic panel data," Tourism Research Institute, Journal of Tourism Research, vol. 18(1), pages 134-147, November.
    17. Stefan F. Schubert, 2016. "A short-run model of a two-sector economy with tourism and unemployment," Tourism Economics, , vol. 22(4), pages 763-778, August.
    18. Fabio Mazzola & Pietro Pizzuto & Giovanni Ruggieri, 2022. "Tourism and territorial growth determinants in insular regions: A comparison with mainland regions for some European countries (2008–2019)," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1331-1382, December.
    19. Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 75-98, Summer.
    20. Narayan, Paresh Kumar & Sharma, Susan Sunila & Bannigidadmath, Deepa, 2013. "Does tourism predict macroeconomic performance in Pacific Island countries?," Economic Modelling, Elsevier, vol. 33(C), pages 780-786.

    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:sae:toueco:v:23:y:2017:i:1:p:29-48. 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: SAGE Publications (email available below). General contact details of provider: .

    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.