The Economic Impact of Tourism in Israel: A Multi-Regional Input—Output Analysis

Daniel Freeman and Esther Sultan
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Daniel Freeman: Computerized Economic Models, 11 Rupin Street, Rehovot 76353, Israel
Esther Sultan: Director, Statistics and Data Bases Division. Israel Ministry of Tourism, 24 King George Street, Jerusalem 94262, Israel

Tourism Economics, 1997, vol. 3, issue 4, 341-359

Abstract: Tourism has become one of the main export services in Israel in the last five years. The objective of this study was to estimate the comprehensive contribution of tourism to the economy of Israel and its spatial distribution. The study measured the impacts (multipliers) on three levels: direct, indirect and induced. A multi-regional input–output (MRIO) model was used in this research because of its capability to evaluate the impacts of inter-regional interdependencies simultaneously with those of sectoral ones. The results were expressed as multi-regional input–output multipliers. The authors conclude that the sum of the value-added from indirect output was 4% of GDP, and that from induced impacts was 7% of the GDP. There were differences in the impacts within and outside the regions. The analysis of multi-regional impacts through the use of MRIO enabled the authors to estimate simultaneously the magnitude of the impacts within the region, the related impacts in other regions, and the feedback impacts due to the other regions' demand.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:3:y:1997:i:4:p:341-359

DOI: 10.1177/135481669700300404

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