Tourism and economic development three tools of analysis

Increasingly, developing countries are embracing international tourism as a source of economic growth. Tourism is one of the world's largest economic activities. It is the leading industry in many countries, as well as a substantial source of job creation worldwide. In recent years, three tools of analysis have become available to inform tourism policy-making by destination managers and planners: the Tourism and Travel Competitiveness Index, Tourism Satellite Accounts, and Computable General Equilibrium models. These tools perform different functions which together provide insights into the competitive strengths and weaknesses of a destination, the economic contribution of tourism to the economy, and the economy-wide impacts of changes in tourism demand. Unfortunately, it is not always the case that destinations most in need of the benefits that such tools can provide have employed them in policy formulation. At the same time, tourism researchers have not always appreciated the different uses to which such tools can be put. The paper discusses the nature of each tool and their importance to policy, planning and the development of tourism, with particular emphasis on lesser developed economies