Measuring the Impact of Tourism Upon Urban Economies: A Review of Literature

34 Pages Posted: 29 Sep 2008

See all articles by Ugo Gasparino

Ugo Gasparino

Fondazione Eni Enrico Mattei (FEEM)

Elena Bellini

Fondazione Eni Enrico Mattei (FEEM)

Barbara Del Corpo

Fondazione Eni Enrico Mattei (FEEM)

William Malizia

Fondazione Eni Enrico Mattei (FEEM)

Date Written: July 11, 2008

Abstract

Tourism is increasingly seen as a potential lever towards high economic growth, measured both in terms of income and employment. In recent years, interest in tourism has spread rapidly throughout many small and medium European cities, which previously have not considered themselves as tourist destinations. This paper reviews and summarizes the existing literature on the economic assessment of tourism with the objectives of, firstly, identifying the main categories of impacts and, secondly, constructing an inventory of methodologies available to assess them. We will progress step by step, starting from the most simplistic approaches and relaxing assumptions as we proceed. Firstly, we assume a static setting, with spare capacity. In such a setting (partial equilibrium), prices do not respond to demand shocks: only quantities (production, income and jobs) adjust. Secondly, we relax this assumption and assume that there is no spare capacity: prices respond to increasing demand (general equilibrium), leading to reallocation of resources across sectors. We then move from a static to a dynamic setting and survey those contributions that look at the relationship between tourism specialisation and long-run growth.

Keywords: Tourism, Economic Impacts, Input-Output Analysis, General and Partial Equilibrium Analaysis

JEL Classification: B41, C67, C68, L83

Suggested Citation

Gasparino, Ugo and Bellini, Elena and Del Corpo, Barbara and Malizia, William, Measuring the Impact of Tourism Upon Urban Economies: A Review of Literature (July 11, 2008). FEEM Working Paper No. 52.2008. Available at SSRN: https://ssrn.com/abstract=1158400 or http://dx.doi.org/10.2139/ssrn.1158400

Ugo Gasparino (Contact Author)

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

Elena Bellini

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
Milan, Milan 20123
Italy

Barbara Del Corpo

Fondazione Eni Enrico Mattei (FEEM) ( email )

53 bis Turin 10124
Italy

William Malizia

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

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