The economic impact of international travelers in the hospitality industry of Austin, Texas, USA in 2021: a regional input-output and data visualization approach

Abstract

The purpose of this paper is to estimate the economic impact of departing international flights in the hospitality industry and other related industries of Austin, Texas, USA in 2021 using an input-output approach and to present the results using data visualization tools. The estimated total economic impact of the international flights departing from Austin, Texas in its economy is around $77 million USD in business sales. The total impact is comprised by the direct, indirect, and induced effects in the regional economy. The indirect and induced effects are estimated to be $26 million in output and a direct effect of $51 million. These estimates imply an estimated output multiplier of 1.6. For every $100 USD spent in the air passenger industry, $60 additional USD are generated due to related industries to the air transportation industry. While the literature on regional economic impact of the hospitality industry is extensive, this paper intends to present a holistic and integrated approach by attempting to present a bridge between travelers’ sentiments, patterns in preferences, and the economic impact of international flight in the regional economy.