Quantitative Tourism Industry Analysis: Introduction to Input-Output, Social Accounting Matrix Modelling and Tourism Satellite Accounts

282 Pages·2008·4.98 MB·English

by  Tadayuki Hara

Quantitative Tourism Industry
Analysis
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Quantitative Tourism
Industry Analysis
Introduction to Input-Output,
Social Accounting Matrix
Modeling, and Tourism Satellite
Accounts
Dr. Tadayuki Hara
AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEWYORK • OXFORD
PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO
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First edition 2008
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Contents
Dedication vii
Epigraph ix
Preface xi
Chapter 1 Introduction to Tourism as an Industry 1
1.1 Relative position of the tourism industry in national and
regional economies 2
1.2 Difficulty in measuring tourism as an industry 13
1.3 Unique characteristics of the economic impact of the tourism industry 14
1.4 Problems for chapter 1 20
1.5 References and further reading 21
Chapter 2 Introduction to Quantitative Methods for Tourism Industry
Analysis 23
2.1 Overview of academic research for hospitality and tourism 24
2.2 Overview of analytical research 24
2.3 Qualitative method 25
2.4 Quantitative methods 27
2.5 Nonstochastic (deterministic) model 34
2.6 Chapter 2 problems 36
2.7 References and further reading 38
Chapter 3 Input-Output Model and its Application 39
3.1 Brief history 40
3.2 Conceptual introduction to simple input-output modeling 40
3.3 Structure of input-output transaction table 42
3.4 Steps from transaction table to Leontief inverse matrix 44
3.5 Multiplier calculations in the input-output framework 54
3.6 Structural limitations of input-output modeling 66
3.7 Applications of impact studies 69
3.8 Varieties of additional concepts on input-output modeling 85
3.9 Questions from students 101
3.10 Chapter 3 problems 107
3.11 References and further reading 112
v
vi CONTENTS
Chapter 4 Social Accounting Matrix Model and its Application 115
4.1 Brief history 116
4.2 Conceptual introduction to simple modeling of social accounting matrix 116
4.3 Structure of the social accounting matrix table 121
4.4 Economic impact analysis using social accounting matrix 131
4.5 Applications of social accounting matrix for impact studies 137
4.6 Questions from students 138
4.7 Chapter 4 problems 141
4.8 References and further reading 146
Chapter 5 Introduction to Tourism Satellite Accounts 149
5.1 Brief history 150
5.2 Some key concepts 151
5.3 General compositions tourism satellite accounts 154
5.4 Tourism satellite accounts case studies 157
5.5 Discussions from students 193
5.6 Chapter 5 problems 200
5.7 References and further reading 201
Chapter 6 Future Directions and Explorations 205
6.1 Poverty alleviation effects of tourism as an industry 206
6.2 Modeling environmental effect of industrial activities 242
6.3 Summary 246
6.4 Chapter 6 problems 246
6.5 References and further reading 247
List of Abbreviations 251
Index 253
Dedication
The idea for this textbook came to me while teaching a tourism industry analysis course at the
School of Hotel Administration (SHA), also known as the Hotel School, at Cornell University.
My dissertation committee members, Jan deRoos, Neal Geller from the Hotel School, as well
as Walter Isard and Sid Saltzman from the regional science program at City and Regional
Planning, helped me embark on my new career as a lecturer and Jim. Susan and Jim Eyster,
professor emeritus at SHA, Cornell University, have been my tacit morale supporters all
through the process. As a newcomer, I received countless assistance from Sue Okubo and
Mark Planting of the Bureau of Economic Analysis, US commerce department. Both Sue and
Mark came to lecture to my students as guest speakers on tourism satellite accounts. David
Welch from International Finance Corporation, World Bank Group, provided much moral
support for analyzing poverty alleviation through the tourism industry.
I feel privileged to be working in a location where I can see the power of tourism as a
prime mover of regional economy. I acknowledge moral support from Abraham Pizam,
dean of the Rosen College of Hospitality Management, University of Central Florida (UCF),
located in the heart of Orlando, one of the most popular tourism destinations in the world.
Deborah Breiter, head of the Tourism, Event and Attractions Department at Rosen College of
Hospitality Management, UCF, created an atmosphere conducive to research activities and
allowed me to experiment with many unique teaching methods. Interactions with colleagues
at UCF stimulated my academic activities and the tourism and hospitality professionals that
I meet in Orlando turned out to be surprisingly inspiring. I have been inspired by guidance
and advice kindly given to me during many academic conferences in regional science, peace
science, hospitality management, and the tourism field.
I am much indebted to, and grateful for my interactions with, students at Cornell and
UCF, both undergraduate and graduate, as they provided me with immediate feedback, about
whether they felt the material was difficult, inspiring, intimidating, fascinating, or boring. It is
to them that I owe the current outlay of this textbook, in terms of user-friendliness. I also wish
to acknowledge the support I received from two PhD students at Rosen College of Hospitality
Management: from Gerald Kock , for some literature research and candid feedback; and from
Manuel Rivera , for some feedback and contribution on poverty issues. I feel indebted to the
training that I received by many mentors at my former employers, the Industrial Bank of
Japan, (currently Mizuho Corporate Bank), Ministry of Foreign Affairs of Japan, and the Four
Seasons Hotels and Resorts.
My wife Valeriya and a daughter Julia rendered imputed help by refraining from
demanding what a family would normally expect from a father in the summer and week-
ends, especially since we live in an area surrounded by theme parks, water parks, attractions,
and events, in addition to the natural wonders of Florida.
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Epigraph
“ When I was young, I made my career on steel industries. If you ask me which
industry it would be today, I say tourism. ”
[Dr. Walter Isard, at the time of the author ’ s completion of his
doctoral dissertation Ithaca, NY, US]
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