Economic Impact Assessment: A Review of Literature on the Tourism Industry

Abstract

By having a model of economic impact, it is possible to create scenarios to analyze in which sectors of the economy a demand/supply shock will result in the most benefit/loss for countries interested in promoting their tourism sector. Particularly useful in this task is the analysis of multipliers for gross domestic product, added value and employment. In developing countries, tourism plays an important role, and one would therefore expect to find corresponding studies on economic impact published in journals of high academic quality. However, upon observation of important tourism journals, it is witnessed that this is not the case for Latin America.