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Estimating Tourism Impacts Using Input–Output and SAM Models in the Balearic Islands

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Notes

  1. 1.

    Usually, tourism is understood as activities carried out by people travelling or staying out of their usual residence place.

  2. 2.

    Since Adams and Parmenter (1995) modeled the impact of tourism on the Australian economy using a multiregional AGE model, the technique has been used to provide quantitative estimates of tourism impacts in Australia (Skene 1993, Madden and Thapa 2000 and Woollett et al. 2001), the USA (Blake et al. 2001), Spain (Blake 2000), the UK (Blake et al. 2003) and Indonesia (Sugiyarto et al. 2003). Zhou et al. 1997, also use a CGE model to quantify the effects of a 10% fall in tourism demand in Hawaii and Dwyer et al. 2003, analyze with a two region model the impact of an increase in tourism’ flows on New South Wales, Australia’s largest state.

  3. 3.

    Spain is divided in 17 Autonomous Communities plus two autonomous cities, Ceuta and Melilla, located in the northern coast of Africa. Each Community has her own Parliament and Government and is responsible for providing many public services such as public health and education. INE’s recent estimates of GDP per capita corrected by price differentials place the CAIB in the third (fourth) position in 1995 (2002). The dynamism of the region is proved by the amazing 23.9% population growth registered in 1991–2001, by far the highest of all Communities

  4. 4.

    The figures provided by the Institute of Tourism Studies, a research body under the Ministry of Industry, Transportation and Commerce, are 9,592 thousand international tourists for the CAIB 49,560 thousand for Spain, in 2003. The absolute loss for the CAIB is 1,052 thousand tourists since 1999 and a 3 percentage point fall in the share of the CAIB.

  5. 5.

    The tables were constructed by a team of scholars from the Economics and Business Department of the Balearic Islands University led by E. Aguiló and N. Juaneda. Other members of the team were M. Payeras, F. Sastre, A. Sastre and E. Valle.

  6. 6.

    A more complete analysis of the table features can be found in Polo and Valle 2002.

  7. 7.

    All figures are in million pesetas (m.p.).

  8. 8.

    The shares on final demand are: residents consumption, 42.4%; non residents’ consumption 31.4%; public consumption 6.6%; gross formation of capital 14.8%; and exports to RES, 1.8% and exports to ROW, 3.0%.

  9. 9.

    For Spain, these shares were 49.5 and 50.5%, respectively, in 1995. The table IOT-BI97 records a surprising negative contribution of net production taxes of –2.2% of value added. The share of wages is lowest in Agriculture (25.0%) and Cattle raising (30.6%), lies between 30 and 50% in most tourism branches and between the 45 and 65% in Construction, most manufacturing and some of services branches and takes the highest values (superior to 65%) in Fishing and Public services branches.

  10. 10.

    The model can be modified to take into account that some intermediate goods used in production are tourist in nature. In order to account for that, the model can be stated as follows: \(y_T \equiv A_T^I y_T + \left( {d_T^I + x{}_T^{} } \right)\) where \(A_T^I\) is the matrix of technical coefficients calculated after excluding tourism intermediate inputs in all sectors and \(x{}_T^{}\) is the vector of those intermediate tourism inputs.

  11. 11.

    “In order to treat capital as an endogenous input, a new (endogenous) industry is created, whose row is the capital stock replaced in each sector of the economy and whose column consists of the inputs required to produce the replacement capital stock. Final demand is valued net of replacement investment, …” (Wolff 1994, p. 85)

  12. 12.

    In the SAM model, savings determine investment, while in the extended IO model with endogenous investment depreciation, the amount invested depends on the depreciation coefficients and the level of output of each sector.

  13. 13.

    See Note 11.

  14. 14.

    A thorough analysis of social accounting matrix results can be found in Polo and Valle (2007.

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Polo, C., Valle, E. (2009). Estimating Tourism Impacts Using Input–Output and SAM Models in the Balearic Islands. In: Matias, Á., Nijkamp, P., Sarmento, M. (eds) Advances in Tourism Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2124-6_8

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