Estimating Tourism Impacts Using Input–Output and SAM Models in the Balearic Islands

  • Clemente Polo
  • Elisabeth Valle


The main goal of the paper is to provide an assessment of the importance of tourism in the Balearic Islands (BI) and to estimate the impact on its economy of a fall in tourism flows in line with that observed in the last decade.1 The BI, a rather backward region that received just a handful of curious travellers in 1950, has become a major tourism resort during the second half of the twentieth century and there seems to be little doubt that tourism has been the engine of growth that has turned the Balearic economy into one of the most prosperous Spanish regions. Recent data trends, however, seem to indicate that the sustained growth of tourism flows into the BI has come to a halt, while their economy has recorded the worst growth performance of all 17 autonomous Spanish regions since 2000.

Input–output (IO) analysis has been the traditional tool used to asses the weight of tourism in the economy and to quantify tourism impacts. (Fletcher 1994, Archer 1995, Archer and...


Final Demand Balearic Island Tourism Sector Standard Input Tourism Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Adams PD, Parmenter BR (1995) An applied general equilibrium analysis of the economic effects of tourism in a quite small, quite open economy. Appl Econ 27:985–994CrossRefGoogle Scholar
  2. Archer B (1995) Importance of tourism for the economy of Bermuda. Ann Tourism Res 22:918–930CrossRefGoogle Scholar
  3. Archer B, Fletcher J (1996) The economic impact of tourism in the Seychelles. Ann Tourism Res 23:32–47CrossRefGoogle Scholar
  4. Blake A (2000) The economic effects of tourism in Spain. Tourism and Travel Research Institute. Discussion Paper 2000/2Google Scholar
  5. Blake A, Durbarry R, Sinclair T, Sugiyarto G (2001) Modelling tourism and travel using tourism satellite accounts and tourism policy and forecasting models. Tourism and Travel Research Institute. Discussion Paper 2001/4Google Scholar
  6. Blake A, Sinclair T, Sugiyarto G (2003) Quantifying the impact of foot and mouth disease on tourism and the UK economy. Tourism Econ 9:449–465CrossRefGoogle Scholar
  7. Chhabra D, Sills E, Cubbage FW (2003) The significance of festivals to rural economies: estimating the economic impacts of Scottish highland games in North Carolina. J Travel Res 41:421–427CrossRefGoogle Scholar
  8. Conselleria d’Economia i Hisenda Govern Balear (1997) Las tablas input–output y el Sistema de Cuentas Regionales para la Comunidad Autónoma de las Islas BalearesGoogle Scholar
  9. Crompton J, Lee S, Shuster T (2001) A guide for undertaking economic impact studies: The springfest example. J Travel Res 40:79–87CrossRefGoogle Scholar
  10. Daniels MJ, Norman WC, Henry MS (2004) Estimating income effects of a sport tourism event. Ann Tourism Res 31:180–199CrossRefGoogle Scholar
  11. Dwyer L, Forsyth P, Spurr R (2003a) Inter-industry effects of tourism growth: implications for destination managers. Tourism Econ 9:117–132CrossRefGoogle Scholar
  12. Dwyer L, Forsyth P, Spurr R (2004) Evaluating tourism’s economic effects: new and old approaches. Tourism Manage 25:307–317CrossRefGoogle Scholar
  13. Dwyer L, Forsyth P, Spurr R, Vanho T (2003b) Tourism’s contribution to a state economy: a multi-regional general equilibrium analysis. Tourism Econ 9:431–448CrossRefGoogle Scholar
  14. Fletcher J (1994) Input–output analysis. In: Witt S, Moutinho L (eds) Tourism marketing and management handbook, 2nd edn. Prentice-Hall International, UK, pp 480–484Google Scholar
  15. Frechtling D, Horvath E (1999) Estimating the multiplier effects of tourism expenditures on a local economy through a regional input–output model. J Travel Res 37:324–332CrossRefGoogle Scholar
  16. Gelan A (2003) Local economic impacts: The British Open. Ann Tourism Res 30:406–425CrossRefGoogle Scholar
  17. Henry EW, Deane B (1997) The contribution of tourism to the economy of Ireland in 1990 and 1995. Tourism Manage 18:535–553CrossRefGoogle Scholar
  18. Hodur NM, Bangsund DA, Leistritz FL, Kaatz J (2006) Estimating the contribution of a multipurpose event facility to the area economy. Tourism Econ 12:303–316CrossRefGoogle Scholar
  19. Kim SS, Chon K, Chung KY (2003) Convention industry in South Korea: an economic impact analysis. Tourism Manage 24:533–541CrossRefGoogle Scholar
  20. Lee C, Taylor T (2005) Critical reflections on the economic impact assessment of a mega-event: the case of 2002 FIFA World Cup. Tourism Manage 26:595–603CrossRefGoogle Scholar
  21. Madden J, Thapa P (2000) The contribution of tourism to the New South Wales economy. Centre for Regional Economic Analysis, University of TasmaniaGoogle Scholar
  22. Mules T (2005) Economic impacts of national park tourism on gateway communities: the case of Kosciuszko National Park. Tourism Econ 11:247–259CrossRefGoogle Scholar
  23. Polo C, Valle E (2002) Un análisis input–output de la economía balear. Estadística Española 44:393–444Google Scholar
  24. Polo C, Valle E (2007) Un análisis estructural de la economía balear. Estadística Española 49:227–257Google Scholar
  25. Polo C, Valle E (2008) A general equilibrium assessment of the impact of a fall in tourism under alternative closure rules: the case of the Balearic Island. Int Reg Sci Rev 31:3–34CrossRefGoogle Scholar
  26. Pyatt G, Round JI (1977) Social Accounting matrices for development planning. Rev Income Wealth 23:339–364CrossRefGoogle Scholar
  27. Pyatt G, Round JI (1979) Accounting and fixed price multipliers in a social accounting matrix framework. Econ J 89:850–873CrossRefGoogle Scholar
  28. Pyatt G, Thorbecke E (1976) Planning techniques for a better future. ILO, GenevaGoogle Scholar
  29. Skene J (1993) The economic impact of the growth in visitor expenditure: A quantitative assessment. Working Paper nº 92, Bureau of Industry Economics.Google Scholar
  30. Sugiyarto G, Blake A, Sinclair MT (2003) Tourism and globalization: Economic Impact in Indonesia. Ann Tourism Res 30:683–701CrossRefGoogle Scholar
  31. Tohmo T (2005) Economic impacts of cultural events on local economies: an input–output analysis of the Kaustinen Folk Music Festival. Tourism Econ 11:431–451CrossRefGoogle Scholar
  32. Tyrrell T, Johnston R (2001) A framework for assessing direct economic impacts of tourist events: Distinguishing origins, destinations, and causes of expenditures. J Travel Res 40:94–100CrossRefGoogle Scholar
  33. Wagner J (1997) Estimating the economic impacts of tourism. Ann Tourism Res 24:592–608CrossRefGoogle Scholar
  34. Wolff E (1994) Productivity measurement within an input–output framework. Reg Sci Urban Econ 24:75–92CrossRefGoogle Scholar
  35. Woollett G, Townsend J, Watts G (2001) Development of QGEM-T a computable general equilibrium model of tourism. Office of Economic and Statistical Research, Queensland Government TreasuryGoogle Scholar
  36. Zhou D, Yanagida JF, Chakravorty U, Leung P (1997) Estimating economic impacts from tourism. Ann Tourism Res 24:76–89CrossRefGoogle Scholar

Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  1. 1.Department of Economics and Economic HistoryUniversidad Autónoma de BarcelonaBarcelonaSpain
  2. 2.Applied Economics DepartmentUniversity of the Balearic IslandsBalearic IslandsSpain

Personalised recommendations