How can you measure the economic impact of tourism on a region?

There have been many survey trying to measure the economic impact of tourism for a specific region and/or a specific event like Olympic Games etc. However, most of them used a very narrow definition of "economic", concentrating on monetary effects and maybe job creation. In times of overtourism debates and rising xenophobic sentiments, that is obviously not enough. The Meaningful Tourism Center has developed the paradigm of Meaningful Tourism, which is based on the insight, that you have to develop measurable KPIs for all stakeholders to be able to measure the long-term effect. These are guests, host communities, employees, companies, governments and the environment. Sustainable economic development only works if all of them have benefits.

Economic impact of any business activity is measured as the increase in the gross income of the inhabitants of the region. The methodologies and processes involved in calculating the impact of Tourism on a region can be understood through the reports of the World Travel & Tourism Council. These reports cover the economic contribution of the sector for more than 70 cities. If a region becomes a hub of tourism new avenues open for job seekers. Furthermore, increased travel affects trade positively which results in advancement of the region as it promotes infrastructural development & improves standard of living. Overall, Tourism affects the region positively in various ways overtime.

Measuring the economic impact of tourism on a region involves looking at direct, indirect, and induced effects. Direct effects are the most visible, like the spending by tourists in hotels, restaurants, and attractions. Indirect effects stem from the supply chain supporting these services, like food suppliers for restaurants. Then there are induced effects, which come from the spending of employees in these industries. In my analysis of tourism's impact, I found that considering all three provides a comprehensive picture. It reveals not just the immediate benefits of tourism but also its ripple effects across the local economy.

Understanding the economic impact of tourism requires acknowledging the ripple effects beyond hotels and restaurants. Unseen connections weave through suppliers and households of tourism-related workers, reaching sectors like retail and health. Precision demands data on expenditures, revenues, and employment. Analytical tools, like the input-output model, unveil these dynamics, depicting how tourism resonates across sectors. It's not just numbers; it's about grasping the socio-economic fabric affected by tourism. Measuring impact is a nuanced art, demanding data-driven precision and a keen understanding of the dynamic interplay shaping the economy within a tourism-driven region.

The economic impact of tourism in a region is measured through tourist spending, job creation, tax revenues, and infrastructure development spurred by tourism. Evaluating changes in property values and local businesses also helps gauge the broader socio-economic effects. These metrics collectively offer a comprehensive view of tourism's economic influence.

Measuring the economic impact of tourism on a region effectively can be achieved through multiplier and ratio analysis. From my experience, the multiplier effect quantifies how tourism revenues circulate through the local economy, affecting various sectors. For instance, calculating the ratio of total income generated to the initial spending by tourists gives insights into the extent of this circulation. Additionally, ratio analysis can be used to compare different aspects, like the amount spent by tourists versus the employment generated. These analytical tools help in understanding the broader economic influence of tourism, going beyond just direct revenues to assess its true impact on a region's economy.

En mi experiencia, hoy en día debemos de tener en consideración el impacto ambiental que va de la mano con el impacto económico.Debemos analizar también la calidad económica que se produce en este sector, pues si hablamos solamente de temporadas altas en ciertos días al a?o y en condiciones laborales precarias, definitivamente yo no lo consideraría como un impacto económico positivo, ya que únicamente se está invadiendo un lugar, dejando una huella ambiental muy grande y sin tener algún beneficio a largo plazo para los que habitan ese lugar. Esto aplica para cualquier rama del turismo, ya sea turismo rural, de masas,cultural, gastronómico, ecoturismo. Es momento de cuestionar las condiciones laborales que existen dentro del turismo.

The negative externalities of tourism in the city of Barcelona are on everyone's mind, but we must not forget the positive ones. Visitor's economy has a direct impact on the well-being of our children thanks to the tourist tax collected in the city, aerothermic equipment and photovoltaic panels will be installed in the 170 schools that it plans to air-condition until 2029. A great positive sustainable initiative!

Por mi experiencia, creo que es importante volver al ORIGEN, volver a la esencia de lo que es un destino turístico e incluir en este tipo de análisis el TURISMO RURAL como uno de los pilares que sustenta el mundo rural de una forma sostenible. El TURISMO RURAL es el que nos devuelve al ORIGEN de los valores de la NATURALEZA y de los ciclos vitales. Además, el turismo rural, mueve la economía de los territorios que, aunque están vacíos de personas, están llenos de recursos naturales: aire puro, cielos limpios, agua cristalina, paisajes infinitos... De otro modo, están abocados a morir. Reivindico el poder el mundo rural en el ámbito del turismo sostenible.

La saisonnalité du tourisme est mise en question : Le télétravail a été parmi les bienfaits qu'ont été produits après la crise sanitaire Covid 19, les gens peuvent travailler depuis tout endroit et les recherches ont démontré un regain pour la productivité et par conséquent la rentabilité des entreprises. Cependant, ce changement a touché le secteur de tourisme indirectement, car dorénavant les salariés n'auront pas besoin attendre leurs vacances pour pouvoir voyager, ils voyagent en plein saison et travaillent à distance sans aucune contrainte. En effet, cela remettra la saisonnalité du tourisme en question et rendra la mesure de son impact sur l'économie plus complexe !

I think that in addition to the economic impact of tourism: the number of rooms developed in a destination, the direct foreign investment in a year, the number of direct and indirect jobs, the other sectors that benefit economically from tourism sector purchases... it is time to take into account the social and environmental impact of tourism, establish indicators for them and add or subtract them to the equation in order to have a net exercise of how much value tourism generates for a region. It is not possible to celebrate that the income from tourism in a destination was X, if the reparation of the environmental damage caused by that tourism development is X+1. Hence the importance of knowing the total net value.