Spillover Effects of Tourism Policy Changes on Hospitality Industries

Global Journal of Business Research, v. 8 (2) p. 111-124, 2014

14 Pages Posted: 11 Dec 2014

See all articles by Chun-Ming Chien

Chun-Ming Chien

Tainan University of Technology

Cheng-Yih Hong

Chaoyang University of Technology

Jian-Fa Li

Chaoyang University of Technology

Date Written: 2014

Abstract

This study aimed at using the industry-related spillover model to examine the spillover effects of the change in tourism policy and employed the induced employment model and the gross-induced added value model to measure the employment income, gross added value, and employment creation. Our results showed evidence that the consumption of Chinese tourists visiting Taiwan has brought a substantial impact on the hospitality and restaurant industries. In addition, the economy of scale created in the restaurant industry was smaller than that in the hospitality industry, since Chinese tourists allocated less expenditure for food. However, the spillover effects in the restaurant industry were larger than that in the hospitality industry.

Keywords: Change in Tourism Policy, Employment, Added Value, Spillover Effect

JEL Classification: C67, D57

Suggested Citation

Chien, Chun-Ming and Hong, Cheng-Yih and Li, Jian-Fa, Spillover Effects of Tourism Policy Changes on Hospitality Industries (2014). Global Journal of Business Research, v. 8 (2) p. 111-124, 2014, Available at SSRN: https://ssrn.com/abstract=2391998

Chun-Ming Chien (Contact Author)

Tainan University of Technology ( email )

Yongkang, Tainan 71002
Taiwan

Cheng-Yih Hong

Chaoyang University of Technology ( email )

No. 168, Jifong E. Rd., Wufong Township
Taichung County, Taiwan 41349
Taiwan

Jian-Fa Li

Chaoyang University of Technology ( email )

No. 168, Jifong E. Rd., Wufong Township
Taichung County, Taiwan 41349
Taiwan

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