This article surveys the literature on tourism and economic development, identifying the contribution that tourism can make to development, including foreign currency, income and employment, and the costs that it entails. Single equation and system of equations models for estimating tourism demand are provided, indicating developing countries’ potential to benefit from increasing expenditure on tourism but their susceptibility to deterioration in price competitiveness. The main sectors of tourism supply ‐transportation, tour operators, travel agents and accommodation ‐are examined and the importance of cross‐country integration between firms is highlighted. The article argues that many of the problems associated with the use of environmental resources for tourism stem from market failure, and it considers methods for increasing, sustainably, the returns from them.

Tourism and economic development: A survey

Preface. Chapter 1: Aims, Background, Innovations and Presentation. Introduction. Background and Innovations. Presentation, Computer Code, Reading Strategy and Themes. Chapter 2: An Illustrative Application of MONASH: the Australian Motor Vehicle Industry from 1987 to 2016. Introduction. Historical and Decomposition Simulations: The Australian Motor Vehicle Industry from 1987 to 1994. Forecast Simulation: Prospects for the Australian Motor Vehicle Industry, 1998 to 2016. A Policy Simulation: The Effects of Reductions in the Tariff on Motor Vehicles. Policy Implications and Concluding Remarks. Appendix: The Derivation of the Formulas for Analysing the Difference Between GDP Paths in Alternative Simulations. Chapter 3: Mathematical Structure, Solution Algorithm and Computer Implementation: An Overview. Introduction. Overview of the Mathematical Structure of MONASH and Introduction to the Johansen/Euler Solution Method. The Input-Output Database and the Initial Solution. Evaluation of the Coefficients in Linear Systems such as (11.2) and (11.12). Overview of the GEMPACK Computations for the MONASH Model. Chapter 4: The Theory of the MONASH Model. Introduction. A Schematic Version of the MONASH Model. Results of Optimizing Decisions. Demands for Exports. Indirect Taxes. Definitions of Macro Variable: Interpretation of Divisia Indexes. Capital-Supply Functions, Rates of Return and Forward-Looking Expectations. Computational Strategy for Decomposition Simulations: Halfway Databases. Equations for Facilitating Historical and Forecast Simulations. Wage Adjustment and Welfare Measures in Policy Simulations. The Public-Sector Account, the Current Account and the Household Account. Appendix: CRESH Production Functions and CRETH Transformation Frontiers. Appendix: The Theory Underlying the Demand Equations for Traditional Exports. Appendix: The Levels representation of Price and Quantity Indexes in MONASH. Chapter 5: Developing the MONASH Closures. Introduction. The Decomposition closure (Third Column of Table 30.1). Developing the Historical Closure (Fourth Column of Table 30.1). Developing the Forecast Closure (Second Column of Table 30.1). Developing the Policy Closure (First Column of Table 30.1). MONASH Closures: Concluding Remarks. Chapter 6: Extensions, Progress and the Future. Introduction. Generating Results for Sub-National Regions. Generating Results for Detailed Occupations. Generating Output Results at a Sub-Input-Output Level. Generating Distributional Results: The Real Incomes of Many Types of Households. Quantifying Labour Market Adjustment Costs. Progress and the Future. References. Author Index. Subject Index.

Dynamic general equilibrium modelling for forecasting and policy : a practical guide and documentation of MONASH

Evaluating tourism's economic effects: new and old approaches

1. The scope and limitations of economic analysis 2. The microfoundations of tourism demand 3. Empirical studies of tourism demand 4. The theory of tourism supply and its market structure 5. The structure, performance and strategies of tourism firms 6. Tourism in an international context 7. Tourism and environmental issues 8. Environmental valuation and sustainability 9. Conclusions

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The Economics of Tourism

Tourism crisis management

A computable general equilibrium model is used to project the effects of tourism on the industrial and regional structures of the Australian economy. The most striking conclusion is that Queensland, usually thought to be the most tourism-oriented of the Australian states, would be a net loser from an economy-wide expansion of tourism. As well as having a relatively large share of its GSP accounted for by tourist-oriented activities, Queensland is also relatively heavily dependent on agriculture and mining, traditional export sectors which are crowded out by the expansion of international tourism.

An applied general equilibrium analysis of the economic effects of tourism in a quite small, quite open economy

Computable general equilibrium modelling for policy analysis and forecasting

Publisher Summary This chapter describes computable general equilibrium (CGE) modeling and the history of its development. The chapter illustrates the computation of solutions for CGE models and reviews its achievements, failures, and potential. The model illustrated in the chapter can be used in two ways: as a single-period model suitable for comparative–static analyses; and as a model for multi-period forecasting. Before CGE models, there were input–output models that emphasized input–output linkages among industries. CGE models go beyond input–output models by linking industries via economy-wide constraints including constraints on the size of government budget deficits; constraints on deficits in the balance of trade; constraints on the availability of labor, capital, and land; and constraints arising from environmental considerations, such as air and water quality. Much of CGE modeling has been concerned with the welfare implications of proposed policy changes—for example, changes in protection, changes in taxes, and changes in environmental regulations. Many interesting welfare results have been obtained, especially in the analysis of tax changes.

Brian R. Parmenter

Papers

An applied general equilibrium analysis of the economic effects of tourism in a quite small, quite open economy

Computable general equilibrium modelling for policy analysis and forecasting

Chapter 1 Computable general equilibrium modelling for policy analysis and forecasting

ORANI, a general equilibrium model of the Australian economy: current specification and illustrations of use for policy analysis

Computable General Equilibrium Modelling