Stability of Input—Output Coefficients by Capacity Utilization for Short-Term Tourism Demand Fluctuation

Ya-Yen Sun and Kam-Fai Wong
Additional contact information
Ya-Yen Sun: Department of Transportation and Communication Management Science, National Cheng Kung University, 1 University Road, Tainan City 70101, Taiwan
Kam-Fai Wong: Institute of Statistics, National University of Kaohsiung, 700 Kaohsiung University Road, Nan Tzu District, Kaohsiung City 811, Taiwan

Tourism Economics, 2014, vol. 20, issue 3, 509-526

Abstract: The ability to portray accurately the regional economic impacts of short-term tourism demand rests on the resemblances between the long-run input–output (IO) technical coefficients and a short-term production function of business sectors. The purpose of this research was to investigate the stability of cost structure by capacity utilization in the tourism industry, using the accommodation sector in Taiwan as an example. Panel data consisting of firm-level financial information based on 13 individual cost categories from 2000 to 2009 were analysed to reveal the magnitude and direction of cost structure changes with respect to occupancy rate. The results indicated that income multipliers and profit multipliers fluctuated substantially but compensated for each other, while IO technical coefficients were very stable. In a situation involving a tourism event, type I and type II sales multipliers and the value added multipliers of the accommodation sector remained relatively stable, but the standard income multipliers were greatly overestimated, or underestimated for tourism recession scenarios. Applying a regional IO model to estimate short-term tourism demand should therefore take into consideration the substitution pattern between personal income and business profits.

Keywords: capacity utilization; input–output analysis; technical coefficients; accommodation; economic impacts (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2013.0294 (text/html)

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:sae:toueco:v:20:y:2014:i:3:p:509-526

DOI: 10.5367/te.2013.0294

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().