Title: Distribution of tourism economic impacts: a longitudinal study

Authors: Pei-Ti Chen, Turgut Var

Addresses: Department of Leisure and Recreation Management, Chung Hua University, No. 707, Sec. 2, WuFu Rd., Hsinchu, 300, Taiwan. ' Department of Management, Izmir University of Economics, 2297 Crystal Falls Drive, Frisco, TX 75034, USA

Abstract: This study assesses the longitudinal economic impact of tourism on the Penghu Islands using an input–output analysis. The objectives of this study are to determine multiplier effects on the local economy, to characterise distributive issues regarding the economic impacts on development stages. The results suggest that certain sectors on the Penghu Islands are more positively influenced than others because of their relationship with tourism. Only those tourism-related sectors (retail trade, food and beverage services, transportation, hotel services and recreation services) receive direct economic benefit. Few non-tourism-related sectors in the economy are positively affected by tourism in both output and per-capita personal income. The longitudinal study finds that the rankings in the two stages are very similar although the average income on each sector in 2003 is lower than that in 1998. The results indicate that tourism industry needs to be developed and integrated into the local economy so that the whole community benefits.

Keywords: tourism economic impact; multiplier effects; input–output models; longitudinal study; Penghu Islands; local economy; economic development; economic benefits; tourists; average income; retail trade; food and beverage services; transportation; hotel services; recreation services.

DOI: 10.1504/IJTP.2010.034206

International Journal of Tourism Policy, 2010 Vol.3 No.2, pp.91 - 112

Received: 23 Nov 2009
Accepted: 08 Dec 2009
Published online: 19 Jul 2010 *

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