Does anyone knows the working of tourism satellite account especially estimation of indirect contributions and i/o analysis , kindly send me message as in need to understand it , this framework is what i am researching at present
Tourism Satellite Account works by measuring both direct and indirect economic contributions of tourism to the national economy. The estimation of indirect contributions relies heavily on Input-Output (I/O) analysis, which tracks how initial tourism spending creates ripple effects throughout the economy. The process maps the complex relationships between different industries, showing how tourism businesses interact with suppliers and other sectors.
The I/O analysis creates detailed matrices that capture these relationships, using multipliers to estimate how tourist spending flows through various economic sectors. For example, when a hotel purchases supplies or pays wages, these transactions generate indirect economic impacts. The analysis uses sophisticated mathematical models to calculate these multiplier effects, considering both backward linkages (purchases from suppliers) and forward linkages (sales to other industries).
The estimation process accounts for regional economic differences, supply chain relationships, and induced effects from worker spending. This comprehensive approach helps policymakers and economists understand tourism's full economic impact beyond just direct spending, though challenges exist in separating tourism from non-tourism activities and accounting for informal sector contributions.
sir I do not know about input out analysis and how it is been conducted , can you send me some sources or suggest areas where i can get basic information as it is needed for my phd thesis