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Tourism sector in Panama: Regional economic impacts and the potential to benefit the poor

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  • Irina Klytchnikova
  • Paul Dorosh

Abstract

Tourism is one of Latin America's fastest growing industries, but the impact of tourism on the poor and the effects on developing regions are under debate. Many studies have evaluated the growth impacts of the tourism sector but few have analyzed the impact of tourism on the economy and poverty at the subnational level in developing countries. This paper presents the results of a top‐down assessment of the impact of tourism spending on growth and poverty at the regional level in Panama using a Social Accounting Matrix multiplier model. As revealed by this study, the tourism sector has large multiplier effects on the Panamanian economy — higher than the Panama Canal and almost twice as high as the textiles sector or Free Zone of Colon — and has the potential for significant benefits to the poor, but these benefits depend on where and how supply chains are structured and on the way tourists spend their money.

Suggested Citation

  • Irina Klytchnikova & Paul Dorosh, 2013. "Tourism sector in Panama: Regional economic impacts and the potential to benefit the poor," Natural Resources Forum, Blackwell Publishing, vol. 37(2), pages 70-79, May.
    • Handle: RePEc:wly:natres:v:37:y:2013:i:2:p:70-79
    DOI: 10.1111/1477-8947.12019
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    1. Cicowiez, Martín & Ordóñez, Romina, 2021. "The economic impacts of tourism-related private investment in Jamaica," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Odhiambo, Nicholas M, 2021. "Tourism development and poverty alleviation in Sub-Saharan African countries: An empirical investigation," Working Papers 28930, University of South Africa, Department of Economics.
    3. Nicholas M Odhiambo, 2021. "Tourism Development and Poverty Alleviation in Sub-Saharan African Countries: An Empirical Investigation," Working Papers AERI0921, African Economic and Social Research Institute (AESRI).
    4. Nicholas M. Odhiambo, "undated". "Tourism Development And Poverty Alleviation In Sub-Saharan African Countries: An Empirical Investigation," Working Papers AESRI09, African Economic and Social Research Institute (AESRI).
    5. Yanxia Wang & Jianping Yang & Fan Tang & Qiuling Ge & Qingshan He & Xun Dai, 2022. "Analysis of the Reciprocal Feedback between Glacier Tourism Development and Regional Economic Growth in Hailuogou," Land, MDPI, vol. 12(1), pages 1-17, December.

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