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Limits to growth: Tourism and regional labor migration
Authors:Denise Eby Konan
Affiliation:1. University of Portsmouth, Economics and Finance Subject Group, Portsmouth Business School, Portland Street, Portsmouth PO1 3DE, UK;2. University College London (UCL), Institute for Sustainable Heritage, The Bartlett, UCL Faculty of the Built Environment, Central House, 14 Upper Woburn Place, WC1H 0NN London, UK;3. Bournemouth University, Department of Accounting, Finance and Economics, Executive Business Centre, 89 Holdenhurst Road, BH8 8EB Bournemouth, UK;1. Department of Economics, Univ. of California San Diego, La Jolla, CA 92093, USA;2. Institute for Choice, University of South Australia, Adelaide, SA 5000, Australia;3. Luskin School of Public Affairs, Univ. of California Los Angeles, Los Angeles, CA 90035, USA;4. School of Public Policy, Univ. of California Riverside, Riverside, CA 92521, USA;5. Nicholas School of the Environment, Duke Univ., Durham, NC 27708, USA;6. Forest Research Institute Malaysia, 52109 Kepong, Selangor, Malaysia
Abstract:The paper provides a methodology for considering the carrying capacity and limits to growth of a labor-constrained mature tourism destination. A computable general equilibrium model is used to examine the impacts of visitor expenditure growth and labor migration on Hawai‘i's economy. Impacts on regional income, welfare, prices, sector-level output, and gross state product are considered under alternative migration scenarios. Labor market constraints impose limits to growth in real visitor expenditures. Labor market growth with constrained visitor demand generates falling per capita household welfare.
Keywords:
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