The impacts of temporary and anticipated tourism spending

Grant Allan, Patrizio Lecca and Kim Swales ()
Additional contact information
Kim Swales: Department of Economics, University of Strathclyde

No 1406, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: Part of the local economic impact of a major sporting event comes from the associated temporary tourism expenditures. Typically demand-driven Input-Output (IO) methods are used to quantify the impacts of such expenditures. However, IO modelling has specific weaknesses when measuring temporary tourism impacts; particular problems lie in its treatment of factor supplies and its lack of dynamics. Recent work argues that Computable General Equilibrium (CGE) analysis is more appropriate and this has been widely applied. Neglected in this literature however is an understanding of the role that behavioural characteristics and factor supply assumptions play in determining the economic impact of tourist expenditures, particularly where expenditures are temporary (ie of limited duration) and anticipated (ie known in advance). This paper uses a CGE model for Scotland in which agents can have myopic- or forward-looking behaviours and shows how these alternative specifications affect the timing and scale of the economic impacts from anticipated and temporary tourism expenditure. The tourism shock analysed is of a scale expected for the Commonwealth Games to be held in Glasgow in 2014. The model shows how "pre-shock" and "legacy" effects - impacts before and after the shock - arise and their quantitative importance. Using the forward-looking model the paper calculates the optimal degree of pre-announcement.

Keywords: economic impact; CGE modelling; mega-events (search for similar items in EconPapers)
JEL-codes: C68 L83 R11 R13 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2014-06
New Economics Papers: this item is included in nep-cmp, nep-tur and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published

Downloads: (external link)
http://www.strath.ac.uk/economics/research/discussionpapers/ (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:1406

Access Statistics for this paper

More papers in Working Papers from University of Strathclyde Business School, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Kirsty Hall ().