Satellite Accounts for the Tourism Industry: Structure, Representation and Estimates for Ireland

Abstract

This article constructs tourism satellite accounts (TSAs) for Ireland and provides a simple matrix representation of how TSAs estimate value added, domestic product and employment. The authors calculate how much tourism has contributed, directly and in total, to Irish value added, domestic product and employment. They find that TSA-measured domestic tourism consumption in Ireland is over five times the traditional official estimate and that tourism indirectly contributes around a further 50% of its direct contribution to Irish GDP. As such, tourism is found to be Ireland's second largest 'industry' in terms of gross value added and that it is Ireland's largest employer. The analysis shows why tourism policies based on traditional estimates of the tourism industry are likely to be misguided.

Estimating the direct contribution of tourism to Rwanda’s economy: Tourism satellite account methodology

“…The industries which are characteristic of or connected to tourism are then identified through their relative dependence on tourism generated demand. The structure of TSA depends on the balance between the demand for tourism commodities by visitors and supply of these commodities (Aydin, 2008; Van de Steeg, 2009; Frechtling, 2010; Kenneally and Jakee, 2012; Mahesh, 2012). TSA relies on statistically recorded observations within accounts that capture the impact of tourist consumption activities.…”

Linkage analysis of tourism‐related sectors in China: An assessment based on network analysis technique

“…To calculate tourism's forward and backward linkages for Hawaii, Cai et al () proposed “linkage analysis” as a complement to the traditional “tourism impact analysis.” Pratt () analysed and compared the forward and backward linkages between tourism and other sectors in China's 30 provinces. Additionally, some scholars have used extended I‐O models, such as SAM (Akkemik, ; Bhatt & Munjal, ; Oosterhaven & Fan, ), CGE (Banerjee et al, ; Blake, Sinclair, & Sugiyarto, ; Dwyer et al, ), and TSA (Frechtling, ; Kenneally & Jakee, ; Sharma & Olsen, ), to evaluate the linkages and impacts of tourism on an economy. However, these extended methods have high requirements for data, and the applications of these methods are very complicated (Crompton, Jeong, & Dudensing, ).…”

“…Tourism industry linkage has attracted the attention of many scholars. To date, several methods have been used to evaluate the industrial linkages and impacts of tourism, such as multiplier analysis (Archer & Christine, ; Teigeiro & Díaz, ), I‐O analysis (Beynon, Jones, & Munday, ; Khanal et al, ), the social accounting matrix (SAM; Akkemik, ; Oosterhaven & Fan, ), computable general equilibrium (CGE; Banerjee, Cicowiez, & Cotta, ; Dwyer, Forsyth, & Spurr, ; Pratt, ), and the tourism satellite account (TSA; Frechtling, ; Kenneally & Jakee, ; Sharma & Olsen, ). For example, Oosterhaven and Fan () constructed an I‐O/SAM model to measure the direct, indirect, and induced impacts of tourism in China.…”

“…By using I‐O analysis, linkage analysis, and a CGE model, Pratt () analysed the economic linkages and impacts of Hawaiian tourism sectors at different stages of the tourism area life cycle. Kenneally and Jakee () built TSAs for Ireland to estimate the contribution of tourism to the national economy. However, due to the limitations of analytical methods, previous studies mainly reveal the characteristics of linkages between tourism and other industries and ignore the linkage mechanisms behind these characteristics.…”

Developing a Web-based regional tourism satellite account (TSA) information system

“…Various scholars have introduced TSA developments in different country contexts, including Germany (Ahlert, 2007), Iceland (Frenţ, 2018), the Netherlands (Heerschap et al, 2005), Ireland (Kenneally and Jakee, 2012), India (Munjal, 2013) and Tanzania (Sharma and Olsen, 2005). Frenţ and Frechtling (2015) argued that it was difficult to fully implement the standard of TSA: RMF 2008 in each country and thus caution was needed when comparing the results of TSAs across countries.…”