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The Direct and Indirect Contributions of Tourism to Regional GDP: Hawaii

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Author Info

  • Eugene Tian

    ()
    (Research and Economic Analysis Division, Department of Business, Economic Development and Tourism, State of Hawaii)

  • James Mak

    ()
    (Research Fellow UHERO, and Professor Emeritus Department of Economics, University of Hawaii at Manoa)

  • PingSun Leung

    ()
    (Department of Natural Resources and Environmental Management, University of Hawaii at Manoa)

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    Abstract

    After two decades of development and refinement, the Tourism Satellite Account (TSA) has been touted as the most comprehensive way to measure the economic contribution of tourism to a destination's gross domestic product. However, recent literature has pointed out that the TSA is deficient in that it does not yield the indirect contribution of tourism to GDP. This paper shows that the TSA cannot be used to estimate the indirect contribution unless the import content of tourism is zero. The indirect contribution can be estimated using input-output (I-O) multipliers. We illustrate using Hawaii as an example.

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    File Function: First version, 2011
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    Bibliographic Info

    Paper provided by University of Hawaii Economic Research Organization, University of Hawaii at Manoa in its series Working Papers with number 2011-8.

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    Length: 22 pages
    Date of creation: Jul 2011
    Date of revision:
    Handle: RePEc:hae:wpaper:2011-8

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    Web page: http://www.uhero.hawaii.edu
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    Related research

    Keywords: tourism satellite account; I-O analysis; tourism GDP; Hawaii;

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    Cited by:
    1. Benjamin Bridgman & Michael Maio & James A. Schmitz, Jr., 2012. "What ever happened to the Puerto Rican sugar manufacturing industry?," Staff Report 477, Federal Reserve Bank of Minneapolis.

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