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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Eugene Tian & James Mak & PingSun Leung, 2011. "The Direct and Indirect Contributions of Tourism to Regional GDP: Hawaii," Working Papers 2011-5, University of Hawaii Economic Research Organization, University of Hawaii at Manoa, revised Sep 2011.
    • Handle: RePEc:hae:wpaper:2011-5
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    File URL: https://uhero.hawaii.edu/wp-content/uploads/2019/08/WP_2011-5.pdf
    File Function: First version, 2011
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    Citations

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    Cited by:

    1. Benjamin Bridgman & Michael Maio & James A. Schmitz, 2012. "What ever happened to the Puerto Rican sugar manufacturing industry?," Staff Report 477, Federal Reserve Bank of Minneapolis.
    2. Jerrod Penn & Wuyang Hu & Linda Cox & Lara Kozloff, 2016. "Values for Recreational Beach Quality in Oahu, Hawaii," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 47-62.
    3. Steven Bond-Smith & Peter Fuleky, 2023. "The effects of the pandemic on the economy of Hawaii," Current Issues in Tourism, Taylor & Francis Journals, vol. 26(23), pages 3846-3852, December.

    More about this item

    Keywords

    tourism satellite account; I-O analysis; tourism GDP; Hawaii;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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