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The hidden geography of tourism firm spending: Tracking economic leakages with firm-to-firm transactions

Author

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  • Srhoj, Stjepan
  • Mikulić, Josip

Abstract

•Tourism impacts local economies through direct, indirect, and induced effects.•We pioneer firm-to-firm data use to shed light on tourism's indirect effects.•Tourism firms buy mostly locally or from the capital, rarely from distant, poorer regions.•Most tourism firms import little or nothing directly but rely heavily on indirect imports.•Ignoring indirect imports may overestimate tourism's economic contribution.

Suggested Citation

  • Srhoj, Stjepan & Mikulić, Josip, 2025. "The hidden geography of tourism firm spending: Tracking economic leakages with firm-to-firm transactions," Annals of Tourism Research, Elsevier, vol. 112(C).
  • Handle: RePEc:eee:anture:v:112:y:2025:i:c:s0160738325000398
    DOI: 10.1016/j.annals.2025.103933
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    References listed on IDEAS

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    1. Benjamin Faber & Cecile Gaubert, 2019. "Tourism and Economic Development: Evidence from Mexico's Coastline," American Economic Review, American Economic Association, vol. 109(6), pages 2245-2293, June.
    2. Joaquin Blaum & Claire Lelarge & Michael Peters, 2018. "The Gains from Input Trade with Heterogeneous Importers," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(4), pages 77-127, October.
    3. Pratt, Stephen, 2015. "The economic impact of tourism in SIDS," Annals of Tourism Research, Elsevier, vol. 52(C), pages 148-160.
    4. Emmanuel Dhyne & Ayumu Ken Kikkawa & Magne Mogstad & Felix Tintelnot, 2021. "Trade and Domestic Production Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(2), pages 643-668.
    5. AV Krishna Chaitanya & Sampada Kumar Swain, 2024. "Economic leakages in tourism: A comprehensive review of theoretical and empirical perspectives," Tourism Economics, , vol. 30(5), pages 1306-1323, August.
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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    More about this item

    Keywords

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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