I am grateful for the moral support of Abraham Pizam, Dean of the Rosen College of Hospitality Management, University of Central Florida (UCF), located in the heart of Orlando, one of the most popular tourist destinations in the world. Walter Isard, at the time of the author's completion of his doctoral dissertation, Ithaca, NY, USA].
Preface
Duchin (1998) made it clear what many economists think about the I-O model: “Despite Leontief being awarded the Nobel Prize in Economics in 1973, input-output economics has failed to retain the interest of academic theorists, who consider it simplistic. a form of general equilibrium analysis.
Aim of the book
It focuses only on a small part of the area, which I call quantitative analysis of the tourism industry (see Figure P-1, for a visual representation), and therefore can be seen as a technical text that covers a part of the quantitative analysis of the analysis of the tourism industry. For certain pieces of content that students either expressed difficulty with or required repeated explanations, I experimented with what I call cyberlabs and used them as a tutorial series, using a virtual teaching assistant.
Structure of the book
I acknowledge the existence of a number of excellent books, including some that focus on tourism and hospitality, although I limit my discussions of these quantitative methods to brief summaries. In this chapter, students will acquire a minimum pedagogical knowledge, together with a set of basic matrix operations and the necessary skills to calculate a set of matrix operations in MS-Excel spreadsheets.
After the calculated detour via hands-on learning experiences on I-O/SAM, Chapter 5 includes an introduction to TSAs. You may find the concepts and terminology presented in the previous chapters useful to follow the logical representations of series tables in the TSA, because TSA is actually built according to the concepts and framework of I-O/SAM.
Introduction to Tourism as an Industry
Relative position of the tourism industry in national and regional economies
- The US tourism industry and the national economy
- Composition of the US tourism industry, by sector
- Relative position of the tourism industry in developing nations
The share of the tourist complex in the US economy is increasing, both in terms of GDP and employment. Tohamy and Swinscoe (2000) produced a working paper on the impact of the tourism sector on the national economy of Egypt.
Difficulty in measuring tourism as an industry
Their summary table for the impact assessment of the Egyptian tourism revenues is cited as Table 1-12. In addition, some of the tourism-related products are intangible, unlike other industrial sectors where output is easily measured in volume or currency value.
Unique characteristics of the economic impact of the tourism industry
- Economic impact paramount to export of goods
- The tourism industry ’s dependence on specific locations
- Unique aspects of tourism sector ’s distribution of considerations
- The tourism industry as an export sector for poverty alleviation
But in the tourism industry there are no lobbyists with a protectionist agenda, which is more in line with the free trade principles of the tourism industry. A student from an LDC attending a graduate school in a developed nation is likely to find tourism-related subjects undervalued due to relative differences in the importance of the tourism industry to the national economy.
Problems for chapter 1
Go to the Interactive Maps page and find out how the hotel (accommodation) industry in each state visually contributes to GDP. What can you say about the contribution to GDP of each hotel sector in each country?
Introduction to
Quantitative Methods for Tourism Industry Analysis
- Overview of academic research for hospitality and tourism
- Overview of analytical research
- Qualitative method
- Quantitative methods
- Statistical models
- Statistical analysis
- Regression models
- Econometrics model
- Time-series model
- Forecasting
- Nonstochastic (deterministic) model
- Gravity model
- Input-output/social accounting matrix
- Current curriculum
- Chapter 2 problems
- References and further reading
In the business environment, this initial step would be identifying the problem. The opinions can be expressed in a normative way, which is the opinion of the authority.
Input-Output Model and its Application
Brief history
In the 1940s, Walter Isard began to focus on the analysis of regional economic impact and started a new academic field called "regional science", which roughly translates to "applied geographic economics". Experts in this field have contributed significantly to the development and application of I-O models to help solve problems in the world.
Conceptual introduction to simple input-output modeling
- Intermediate goods and final consumption
- Relationship among intermediate transactions, final demands, and total output Imagine now that you are a farmer who grows oranges, and that you sell your oranges (i.e
As for the remaining oranges, you decide to take them to the farmer's market where people can directly buy them for their own consumption to meet their final demand. Final demand for intermediate goods total production, i.e. oranges. . sold to other industries) (oranges sold for final demand).
Structure of input-output transaction table
- Row interpretation in transaction table
- Column interpretation in transaction table
Now that we know that total output consists of intermediate goods and final demand, we can consider them in a tabular format in the next section. This is equivalent to 10 ingredients needed within 1 year to produce the total output of 10 agricultural commodities.
Steps from transaction table to Leontief inverse matrix
- Minimum required knowledge for series of matrix operations for input-output modeling
- Processes in matrix format
- Matrix operations for input-output modeling
The A-matrix is the first in the series of calculations against economic impact studies, as shown in Table 3-5. The agricultural sector has 1.75, which means that a change in the total output of the industrial sector will be 1.75 if there is an increase in final demand for the agricultural sector for 1.
Multiplier calculations in the input-output framework
- Multiplier calculations
The remaining numbers shown in the column vector represent the indirect impact, as shown in Figure 3-6. Given the increase in final demand for the agricultural sector, for $1 million, which initially creates 60 new jobs in the agricultural sector in the study area, the economy will generate a total of 95.2 new jobs due to the interdependence of the industrial sectors.
Structural limitations of input-output modeling
- No Assumption on supply constraints
- Constant return to scale
- Fixed commodity input structure
- Homogeneous sector output
In the transaction table, there would be more purchases of manufactured goods rather than agricultural products. If the sector produces more than one commodity (this will be discussed later), the share of such multiple commodity productions will remain the same as in the investigation period.
Applications of impact studies
- Steps for impact studies
- An Impact study sample
- Impact studies literature
- Usage of impact studies computer software packages
After the multiplication of the Leontief inverse matrix with the final demand column vector, you will have the total output column vector. Heng and Low (1990) used the IO model to conduct a detailed analysis of the economic impact of tourism development on the economy of Singapore.
Varieties of additional concepts on input-output modeling
- The closed input-output model and the open input-output model
- Backward and forward linkages
- Inter-regional input-output and multiregional input-output
- Industry and commodity
- Make and use matrix
- Producer price and purchaser price
- Relationship between input-output table and the national accounts data
- Alternative Methods to estimate multipliers
- Regional analysis
In the MRIO structure, interregional flows of goods and services are first recorded by the trade table. Now we assume there would be a $100 increase in final demand for sector 1 output in the East region.
Questions from students
- Timeliness
If we set the output of sector i in nation N as XiN and the total output in the region as XN, dividing the first by the second, we see the relative share of output of sector i in the country. This issue is discussed more formally as a time stability of the technical coefficients in the I-O table.
Chapter 3 problems
I've already created basic worksheets for you so you don't have to type. Using matrix A and matrix I, calculate the matrix (I A) and show the result in the fourth table.
Stillwater, MN : IMPLAN Group, Inc. 2005) Decomposing structural change through global sensitivity analysis of input-output models. New York: Chapman and Hall. 1970) Changes in input-output coefficients over time for the United States.
Social Accounting Matrix Model and its Application
Brief history
A British scholar, Sir Richard Stone further developed the concepts in a way that an economy can be comprehensively explained by expanding to include all other key activities in society apart from industrial activities. In this regard, SAM can be considered an extension of the I-O framework in terms of how it is presented in a matrix format as in I-O.
Conceptual introduction to simple modeling of social accounting matrix
- Key concepts of institutions, production activities, and factors of production Figure 4-1 shows a simplified visual depiction of concepts of the SAM, which shows how the
- Trilateral interactions in the social accounting matrix table
Now that factors are receiving cash flows in the name of wages and rents as shown by arrow (4) in Figure 4-1, let's see what happens next. In that case, your labor is exchanged for wages as shown by arrow (4) in Figure 4-1, and the money continues to move to the owner of the labor, you (i.e., institutions), in the name of labor income, as shown by arrow ( 6) in Figure 4-1.
Structure of the social accounting matrix table
- Overview of structures
- Matrix operations for social accounting matrix modeling
At the bottom of the factors column is the area intersecting the Other (trade) row, which is shown as (4, 2). The largest components of the institutions are households, as we discussed in the IO structure.
Economic impact analysis using social accounting matrix
- Applications of social accounting matrix modeling
- Concept of household disaggregation
What if we divide the households into two groups, low-income households and high-income households. In this case, in all three policies, high-income households tend to benefit more than the low-income households.
Applications of social accounting matrix for impact studies
- Steps for impact studies
- Pros and cons of impact studies computer software packages
They can be very powerful tools for impact studies, and the choices available to fine-tune certain assumptions actually allow researchers to incorporate sophisticated parameters into the modeling. Some researchers share the concern that IMPLAN may be the off-the-shelf, impactful software package and pose a risk of allowing novices to conduct easy impact studies.
Questions from students
There are no formally established remedies for perceived violations of assumptions, such as those for the stochastic group of quantitative models. 5 Is the output generated from ready-made software like IMPLAN good for my thesis.
Chapter 4 problems
So you are given more explicit tips in the MS-Excel sheet on how to model the tourism impacts on the economy. You will find the summary table in the MS-Excel sheet that looks like this, immediately to the right of cells (cell: AY253−BC262).
1999) Some relationships between T-accounts, input-output tables and social accounting matrices. 1990) Social Accounting Matrices – A Basis for Planning. In Social Accounting Matrices a Basis for Planning (G. Pyatt and J.I. Round, eds.) p. Washington DC: The World Bank. 2003) Constructing SABS for development policy analysis: lessons learned and challenges ahead.
Introduction to Tourism Satellite Accounts
Brief history
The Commission of the European Communities, the International Monetary Fund, the OECD, the United Nations, and the World Bank jointly published the System of National Accounts (SNA) in 1993 to update various measurement issues of the world's market economies from earlier versions. in 1953 and 1968. The contents of the 1993 System of National Accounts are available .. on the website of the United Nations Statistics Division: http://unstats.un.org/unsd/sna1993/ . introduction.asp
Some key concepts
- Visitor and tourist
- Usual and unusual environment
- Supply-based concept and demand-based concept
- Supply-based concept
- Unique characteristics of tourism products
- Demand-based concept of tourism
In the US, the Consumer Expenditure Survey (CES) by the Bureau of Labor Statistics, the US Travel Survey by the Bureau of Transportation Services use different distances (75 miles and 100 miles respectively), and indeed the distance criteria for visitors varies from one nation to another. After some relaxation at the hotel, they walked to the movie theater across the block and bought admission tickets (entertainment sector).
General compositions tourism satellite accounts
4 3 Offer by typical tourism and other industries to meet the tourism demand of different types of visitors: net basis – current prices. 5 3A Supply by typical tourism and other industries to meet tourism demand from different types of visitors: gross basis – current prices.
Tourism satellite accounts case studies
- US federal level tourism satellite accounts
- Column interpretations
- Row interpretations
In addition to industries, the hotel and lodging industry (see column heading at top) produced $16,613 million of restaurant and bar goods (see row heading at left). The industry sector called hotels and lodgings (commonly known as hotels) produced $16,613 million worth of dining experience equivalents (perhaps a combination of delicious meals, good drinks, good service, and a pleasant atmosphere, resulting in an intangible good like a dining experience).
