Input-Output Model for Tourism Analysis

Tourism, travel, and hospitality services can have a significant social and economic impact on the places where they take place. While the social impacts and their dimensions are discussed on many platforms and are not easily identifiable, the economic impacts of these phenomena can be more realistically identified because of their measurable nature, such as increased production, job creation, income generation, and so on. To measure these effects, economists have used a variety of methods and models. Among them, the general equilibrium model, tourism multipliers, and input–output (I–O) analysis are well-known and the most widely used ones. I–O analysis is also the oldest model, dating back to the 18th century, and in most cases, the model is used along with multipliers to identify the indirect effects of an economic activity. The purpose of this chapter is to provide general information about the model and how it can be used to analyze tourism in a national or regional economy.