Abstract: | A modified version of the Archer tourism multiplier model is used to derive differential multipliers, at both the sectoral and firm scale, for the Cook Islands tourist industry and ancillary sectors. Firm level analysis is shown to be necessary if factors of industrial organization, such as size and ownership characteristics, are not to be overlooked. The results reveal that smaller, locally owned establishments generate more local income, employment, and gross government revenue than their larger, overseas controlled counterparts. The model is shown to be a highly suitable surrogate for conventional input-output models, which, due to factors such as cost and lack of data, cannot always be used in small nations or regions to develop a data base suitable for the planning of tourist development. |