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Inter-Industry Effects of Tourism Growth: Implications for Destination Managers

Author

Listed:
  • Larry Dwyer

    (Qantas Professor of Travel and Tourism Economics, University of New South Wales, Sydney, NSW 2052, Australia)

  • Peter Forsyth

    (Department of Economics, Monash University, Clayton, Victoria 3800, Australia)

  • Ray Spurr

    (Centre for Tourism Policy Studies, University of New South Wales, Sydney, NSW 2052, Australia)

Abstract

The study of the economic contribution of tourism has recently undergone a ‘paradigm shift’ as a result of the use of Computable General Equilibrium (CGE) models in place of input–output models. In a CGE model which incorporates a realistic set of economy-wide constraints, the effects of tourism growth on destination income and employment cannot be anticipated a priori . The development and application of this superior technique have major implications for the way that tourism economists must now think about the economic impacts of tourism and for the policy advice they give to decision makers in both the public and private sectors. This paper explores three areas in which CGE modelling has relevance for the destination management organization: tourism planning, cooperative destination marketing, and assessment of destination competitiveness.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:toueco:v:9:y:2003:i:2:p:117-132
    DOI: 10.5367/000000003101298303
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    References listed on IDEAS

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    1. Dixon, Peter B. & Parmenter, B.R., 1996. "Computable general equilibrium modelling for policy analysis and forecasting," Handbook of Computational Economics, in: H. M. Amman & D. A. Kendrick & J. Rust (ed.), Handbook of Computational Economics, edition 1, volume 1, chapter 1, pages 3-85, Elsevier.
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    Cited by:

    1. Niccolò Comerio & Fernanda Strozzi, 2019. "Tourism and its economic impact: A literature review using bibliometric tools," Tourism Economics, , vol. 25(1), pages 109-131, February.
    2. 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.
    3. Raúl Hernández Martín, 2004. "Impact of Tourism Consumption on GDP. The Role of Imports," Working Papers 2004.27, Fondazione Eni Enrico Mattei.
    4. João Romão & João Guerreiro & Paulo M. M. Rodrigues, 2016. "Tourism growth and regional resilience," Tourism Economics, , vol. 22(4), pages 699-714, August.
    5. Banerjee, Onil & Cicowiez, Martin & Gachot, Sébastien, 2015. "A quantitative framework for assessing public investment in tourism – An application to Haiti," Tourism Management, Elsevier, vol. 51(C), pages 157-173.
    6. Kawasaki, Kenichi, 2005. "The Sectoral and Regional Implications of Trade Liberalization," Conference papers 331385, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Onil Banerjee & Martin Cicowiez & Adela Moreda, 2017. "Reconciliation Once and For All: Economic Impact Evaluation and Social Cost Benefit Analysis," CEDLAS, Working Papers 0207, CEDLAS, Universidad Nacional de La Plata.
    8. Slobodan Cerovic & Miroslav Kneževic & Danijel Pavlovic, 2016. "The Effects of Tourism on the GDP of Macedonia, Montenegro and Serbia in the Process of European Integration," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(42), pages 407-407, May.
    9. Hao Li & Yun Tong, 2025. "Developing a quantitative analytical framework for carbon neutrality in tourism-dependent regions," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-22, December.
    10. Onil Banerjee & Martin Henseler & Hélène Maisonnave & Lulit Mitik Beyene & Mercedes Velasco, 2017. "An integrated model for evaluating investments in cultural heritage tourism in the Dominican Republic," Tourism Economics, , vol. 23(8), pages 1568-1580, December.
    11. José F. Perles & Martín Sevilla & Ana B. Ramón-Rodríguez & María Jesús Such & Patricia Aranda, 2024. "Carry-over effects of tourism on traditional activities," Tourism Economics, , vol. 30(5), pages 1237-1256, August.
    12. Kanchana Wickramasinghe & Athula Naranpanawa, 2022. "Systematic literature review on computable general equilibrium applications in tourism," Tourism Economics, , vol. 28(6), pages 1647-1668, September.
    13. Meiwei Tang & Shouzhong Ge, 2018. "Accounting for carbon emissions associated with tourism-related consumption," Tourism Economics, , vol. 24(5), pages 510-525, August.
    14. Jean-Jacques Nowak & Mondher Sahli, 2025. "Imports and tourism expansion: A general equilibrium analysis," Tourism Economics, , vol. 31(3), pages 557-575, May.
    15. Silvia Emili & Federica Galli, 2023. "Spatial and cross-sectoral input spillover effects: the case of the Italian tourism industry," Journal of Productivity Analysis, Springer, vol. 59(3), pages 243-258, June.
    16. Chantha Hor, 2021. "Assessing the dynamic tourism inter-industry linkages and economic structural changes in Cambodia’s economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-24, December.
    17. Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    18. Onil Banerjee & Martin Cicowiez & Sebastien Gachot, 2015. "A Framework for Ex-Ante Economic Analysis of Tourism Investments: An Application to Haiti," IDB Publications (Working Papers) 91317, Inter-American Development Bank.
    19. 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.
    20. Banerjee, Onil & Cicowiez, Martin & Gachot, Sebastien, 2015. "A Framework for Ex-Ante Economic Analysis of Tourism Investments: An Application to Haiti," IDB Publications (Working Papers) 7238, Inter-American Development Bank.
    21. Clemente Polo & Elisabeth Valle, 2008. "A General Equilibrium Assessment of the Impact of a Fall in Tourism Under Alternative Closure Rules: the Case of the Balearic Islands," International Regional Science Review, , vol. 31(1), pages 3-34, January.
    22. Leon, Costas & Eeckels, Bruno, 2009. "A Dynamic Correlation Approach of the Swiss Tourism Income," MPRA Paper 15215, University Library of Munich, Germany.
    23. Jelena Petrović & Snežana Milićević & Lukrecija Djeri, 2017. "The information and communications technology as a factor of destination competitiveness in transition countries in European Union," Tourism Economics, , vol. 23(6), pages 1353-1361, September.

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