Tourism’s potential to benefit the poor

Robertico Croes and Manuel A. Rivera
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Robertico Croes: University of Central Florida, USA
Manuel A. Rivera: University of Central Florida, USA

Tourism Economics, 2017, vol. 23, issue 1, 29-48

Abstract: The study examines the distributional effects of tourism expansion applying a social accounting matrix model to the case of Ecuador. Specifically the study examines what share of tourism expansion benefits poor people. The study finds that tourism has large multiplier effects on the Ecuadorian economy and has the potential for substantial benefits to the poor. The study also found that distributional effects of tourism development are spread across all household incomes in both urban and rural areas benefiting the lowest and low households the most. Tourism has the potential of reducing inequality and is pro-poor in the case of Ecuador. Benefits to the poor seem to hinge on how and where tourists spend their money.

Keywords: Ecuador; income distribution; inequality; pro-poor; social accounting matrix (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:23:y:2017:i:1:p:29-48

DOI: 10.5367/te.2015.0495

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