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Inter-industry employment spillovers from tourism inflows

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  • Kadiyali, Vrinda
  • Kosová, Renáta

Abstract

How much economic stimulus does tourism provide by generating jobs in various local industry sectors? Using data across 43 U.S. metropolitan statistical areas during 1987–2006, we analyze the impact of tourism inflows — proxied by the number of hotel rooms sold — on the employment in 22 non-hotel industries. We estimate a dynamic labor demand model with inter-industry spillover effects, using various estimators including GMM-based dynamic panel methods. We find statistically and economically significant effects — an additional 100 rooms sold per day during a year in a given MSA generates between 2 and 5 new jobs per non-hotel industry in that area. Subsample analyses across industries indicate that construction, retail, health care, professional and technical services are among the largest beneficiaries of these spillovers.

Suggested Citation

  • Kadiyali, Vrinda & Kosová, Renáta, 2013. "Inter-industry employment spillovers from tourism inflows," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 272-281.
    • Handle: RePEc:eee:regeco:v:43:y:2013:i:2:p:272-281
    DOI: 10.1016/j.regsciurbeco.2012.07.006
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    2. Jun Liu & Ziwei Wang & Changjin Li, 2023. "All-for-One Tourism Demonstration Zones and High-Quality Development of Tourism: Evidence from the Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    3. Silvia Cerisola & Elisa Panzera, 2025. "Heritage tourism and local prosperity: An empirical investigation of their controversial relationship," Tourism Economics, , vol. 31(5), pages 964-983, August.
    4. Mitra, Subrata Kumar & Chattopadhyay, Manojit & Jana, R.K., 2019. "Spillover analysis of tourist movements within Europe," Annals of Tourism Research, Elsevier, vol. 79(C).
    5. Ana María Estrada-Jabela & Lewis Enrique Polo-Espinosa & Gerson Javier P�rez-Valbuena & Lucas Wilfried Hahn-De-Castro, 2016. "Caracterización del mercado laboral en el sector hotelero de Cartagena y las principales áreas metropolitanas," Documentos de Trabajo Sobre Economía Regional y Urbana 14976, Banco de la República, Economía Regional.
    6. Ziyu Jia & Yan Jiao & Wei Zhang & Zheng Chen, 2022. "Rural Tourism Competitiveness and Development Mode, a Case Study from Chinese Township Scale Using Integrated Multi-Source Data," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    7. Silke J. Forbes & Renáta Kosová, 2023. "Does Competition Benefit Complements? Evidence from Airlines and Hotels," Management Science, INFORMS, vol. 69(8), pages 4733-4752, August.
    8. David Boto-García & Oriol Anguera-Torrell & Marta Escalonilla, 2025. "When Taylor Swift hits town: Megastar-driven effects on hotel performance," Tourism Economics, , vol. 31(7), pages 1402-1427, November.
    9. Hidalgo, Alberto, 2024. "Your room is ready: Tourism and urban revival," Regional Science and Urban Economics, Elsevier, vol. 109(C).
    10. Nicola Camatti & Luca Salmasi & Jan van der Borg, "undated". "Tourism and economic growth: an application to coastal regions in the Mediterranean area," Working Papers 2021:16, Department of Economics, University of Venice "Ca' Foscari".
    11. Giotis Georgios, 2022. "Preliminary Results on the Employment Effect of Tourism. A meta-analysis," Papers 2206.00174, arXiv.org.
    12. Li, Hengyun & Chen, Jason Li & Li, Gang & Goh, Carey, 2016. "Tourism and regional income inequality: Evidence from China," Annals of Tourism Research, Elsevier, vol. 58(C), pages 81-99.
    13. Marly Valenti Patandianan & Hiroyuki Shibusawa, 2020. "Evaluating the spatial spillover effects of tourism demand in Shizuoka Prefecture, Japan: an inter-regional input–output model," Asia-Pacific Journal of Regional Science, Springer, vol. 4(1), pages 73-90, February.
    14. Castillo, Victoria & Figal Garone, Lucas & Maffioli, Alessandro & Salazar, Lina, 2017. "The causal effects of regional industrial policies on employment: A synthetic control approach," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 25-41.
    15. Fazal Amin & Ping Guo, 2025. "The Nexus between Tourism Industry and Unemployment Rate: The Case of South Asian Countries," Journal of Economic Sciences, Federal Urdu University Islamabad, Department of Economics, vol. 4(1), pages 37-52, June.
    16. Marly Valenti Patandianan & Hiroyuki Shibusawa, 2020. "Impacts of disaster on the inbound tourism economy in Kyushu, Japan: a demand side analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 4(3), pages 759-793, October.
    17. Jianjun Liu & Haili Pan & Shiyong Zheng, 2019. "Tourism Development, Environment and Policies: Differences between Domestic and International Tourists," Sustainability, MDPI, vol. 11(5), pages 1-15, March.
    18. Rui Zhang & Yuqin Sun & Jiecao Jiang, 2023. "Factors Influencing the Spatial Spillovers of the Interprovincial Tourism Economy Based on Three-dimensional Distance: Evidence From China," SAGE Open, , vol. 13(3), pages 21582440231, August.
    19. Zdravko Sergo, 2019. "Inter-Generational Employment Spillovers From Tourism Across The Eu," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 28(1), pages 97-125, june.

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