The economic impact of tourism in SIDS |
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Institution: | 1. University of Queensland, Australia;2. Southern Cross University, Australia;1. Department of Management Studies and Quantitative Methods, University of Naples “Parthenope”, Via Generale Parisi, 13, Naples I-80132, Italy;2. Economics Department, Bocconi University, Via Roentgen, 1, Milan 20136, Italy |
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Abstract: | Small Island Developing States (SIDS) are faced with many challenges to economic development. Tourism is seen as a viable, and sometimes, only means of economic growth. This research compares the economic impact of tourism to seven SIDS. The research employs input output analysis, linkage analysis and a CGE model to assess the macroeconomic and sectoral impacts of increased tourism in these islands. The findings show that the transportation sector remains a key sector. The tourism income multipliers show that tourism generates a large amount of economic activity but the income that remains in the destinations is often very small. The results show that taking advantage of economies of scale maybe a way to maximize the benefits from tourism. |
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Keywords: | SIDS Islands Economic impact Computable general equilibrium model Input output analysis Linkages |
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