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

Author

Listed:
  • Clemente Polo

    (Economics Department, Universitat Autònoma de Barcelona, Edificio B., Campus de Bellaterra, 08193 Bellaterra, Barcelona, Spain)

  • 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)

  • Elisabeth Valle

    (Department of Applied Economics, Universitat de les Illes Balears)

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.

Suggested Citation

  • Clemente Polo & Vicente Ramos & Javier Rey-Maquieira & María Tugores & Elisabeth Valle, 2008. "The Potential Effects of a Change in the Distribution of Tourism Expenditure on Employment," Tourism Economics, , vol. 14(4), pages 709-725, December.
    • Handle: RePEc:sae:toueco:v:14:y:2008:i:4:p:709-725
    DOI: 10.5367/000000008786440210
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    References listed on IDEAS

    as
    1. Carlos Iglesias Fernández & Raquel Llorente Heras, 2000. "Estructura productiva, cambio técnico y empleo: Un análisis de prospectiva para la economía española," Working Papers 06/00, Instituto Universitario de Análisis Económico y Social.
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