The Potential Effects of a Change in the Distribution of Tourism Expenditure on Employment

Clemente Polo, Vicente Ramos, Javier Rey-Maquieira, María Tugores and Elisabeth Valle (elisabeth.valle@uib.es)
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Vicente Ramos: Department of Applied Economics, Universitat de les Illes Balears, Crta Valldemossa, km 7.5, 07122 Palma de Mallorca, Baleares, Spain
Javier Rey-Maquieira: Department of Applied Economics, Universitat de les Illes Balears
María Tugores: Department of Applied Economics, Universitat de les Illes Balears

Tourism Economics, 2008, vol. 14, issue 4, 709-725

Abstract: Many mature tourist destinations are considering replacing low category hotel beds with high category beds. This study estimates the potential effects that these proposals will have on employment, assuming that labour is homogeneous. The methodology used is based on the input–output model and the social accounting matrix, which allow direct, indirect and induced effects to be taken into account. In addition to conventional employment and output multipliers, the paper presents projections for different bed replacement scenarios and analyses the replacement ratios which would allow aggregate gross value added or employment to remain constant. Finally, the analysis extends to include the change of tourist expenditure distribution on complementary tourism facilities.

Keywords: employment; tourism quality strategy; input–output model; social accounting matrix (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:14:y:2008:i:4:p:709-725

DOI: 10.5367/000000008786440210

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