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Assimilation of Tourism Satellite Accounts and Applied General Equilibrium Models to Inform Tourism Policy Analysis

Author

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  • Riaan Rossouw

    (School of Economics, North-West University, Potchefstroom Campus, South Africa and Eon Consulting, Midrand, South Africa)

  • Melville Saayman

    (Institute for Tourism, Wildlife Economics and Leisure Studies, North-West University, Potchefstroom Campus, Private Bag X6001, Potchefstroom 2520, South Africa)

Abstract

Historically, tourism policy analysis in South Africa has posed challenges to accurate measurement. The primary reason for this is that tourism is not designated as an ‘industry’ in standard economic accounts. This paper therefore demonstrates the relevance and need for applied general equilibrium (AGE) models to be completed and extended through an integration with tourism satellite accounts (TSAs) as a tool for policy makers (especially tourism policy makers) in South Africa. The paper sets out the reasons behind the need for economic models for policy analysis and other purposes, and gives an overview of old and new approaches to tourism policy modelling. The relevance of integrated models to, specifically, tourism policy analysis both internationally and in the South African context is discussed, followed by an illustrative empirical simulation of an exogenous inbound tourism expansion of 10%, against the background of the relationship between tourism and economic development. Furthermore, the indirect effects of an input–output model are also presented for comparison. The results confirm that the integrated approach is a more accurate tool for policy analysis.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:4:p:753-783
    DOI: 10.5367/te.2011.0058
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    References listed on IDEAS

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    Cited by:

    1. Stephen Pratt, 2015. "The Borat Effect: Film-Induced Tourism Gone Wrong," Tourism Economics, , vol. 21(5), pages 977-993, October.
    2. Mbanda, Vandudzai & Bonga-Bonga, Lumengo, 2018. "Impacts of Public Infrastructure Investment in South Africa: A SAM and CGE-Based Analysis of the Public Economic Sector," MPRA Paper 90613, University Library of Munich, Germany.
    3. Doris Chenguang Wu & Jingyan Liu & Haiyan Song & Anyu Liu & Hui Fu, 2019. "Developing a Web-based regional tourism satellite account (TSA) information system," Tourism Economics, , vol. 25(1), pages 67-84, February.
    4. Pratt, Stephen, 2015. "The economic impact of tourism in SIDS," Annals of Tourism Research, Elsevier, vol. 52(C), pages 148-160.

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