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The economic impact of tourism in SIDS

Stephen Pratt

Annals of Tourism Research, 2015, vol. 52, issue C, 148-160

Abstract: Small Island Developing States (SIDS) are faced with many challenges to economic development. Tourism is seen as a viable, and sometimes, only means of economic growth. This research compares the economic impact of tourism to seven SIDS. The research employs input output analysis, linkage analysis and a CGE model to assess the macroeconomic and sectoral impacts of increased tourism in these islands. The findings show that the transportation sector remains a key sector. The tourism income multipliers show that tourism generates a large amount of economic activity but the income that remains in the destinations is often very small. The results show that taking advantage of economies of scale maybe a way to maximize the benefits from tourism.

Keywords: SIDS; Islands; Economic impact; Computable general equilibrium model; Input output analysis; Linkages (search for similar items in EconPapers)
Date: 2015
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