Economics Commons^™

Estimating Economic Impacts From Tourism, Ujjayant N. Chakravorty, Deyong Zhou, John Yanagida, Pingsun Leung

Ujjayant Chakravorty

Economists have traditionally used input-output (IO) analysis to examine the impacts of tourism on the economy of a region. This paper introduces a relatively new and alternative technique, computable general equilibrium (CGE). The two approaches are compared and then used to analyze, as an illustration, the impacts on Hawaii’s economy from a reduction in visitor expenditure. The study concludes that the results of the IO model are similar in magnitude to those of the CGE model but generally higher and that sectors closely associated with tourism exhibit the largest effects. The ability to account for inter-sectoral resource flows is a …