Regional Economic Impacts of Tourism: The Case of Denmark

Abstract

Zhang J., Madsen B. and Jensen-Butler C. (2007) Regional economic impacts of tourism: the case of Denmark, Regional Studies 41, 839-853. The Danish interregional general equilibrium model LINE is presented together with its tourism submodel. The model is used to analyse the importance of tourism in regional economies and to decompose regional tourism multipliers. The difference between direct and derived effects is examined; and by using the model, the factors that determine the size of the direct effects and derived effects are identified. The analysis is applied to Danish regions which are divided into urban and rural regions. In general, the results show that tourism multipliers are larger in urban than in rural areas. Factors such as interregional trade, commuting and shopping leakage have to be taken into consideration when evaluating the derived effects. When the leakage is large, the tourism multiplier tends to be small. The paper also draws attention to the difference between absolute and relative impacts of tourism on the regional economy. Zhang J., Madsen B. et Jensen-Butler C. (2007) Les retombees regionales du tourisme: etude de cas du Danemark, Regional Studies 41, 839-853. On presente le modele interregional danois d'equilibre general appele LINE conjointement avec le modele secondaire sur le tourisme. On se sert du modele afin d'analyser l'importance du tourisme dans les economies regionales et pour decomposer les multiplicateurs regionaux du tourisme. On examine la difference entre les retombees directes et indirectes et, a partir du modele, on identifie les facteurs qui determinent l'importance des retombees directes et indirectes. On applique l'analyse aux regions danoises, divisees en zones urbaines et rurales. En regle generale, les resultats laissent voir que les multiplicateurs du tourisme s'averent plus importants dans les zones urbaines qu'ils ne le sont dans les zones rurales. Pour evaluer les retombees indirectes, il faut tenir compte d'autres facteurs, tels les echanges interregionaux, les migrations quotidiennes et la fuite des depenses des menages. Quand la fuite s'avere importante, le multiplicateur du tourisme a tendance a etre negligeable. L'article cherche aussi a attirer l'attention sur la difference entre les retombees absolues et relatives du tourisme sur l'economie regionale. Retombees economiques du tourisme Multiplicateurs du tourisme Modelisation macroeconomique interregionale Regions danoises Zhang J., Madsen B. und Jensen-Butler C. (2007) Die regionalen wirtschaftlichen Auswirkungen des Fremdenverkehrs: der Fall Danemark, Regional Studies 41, 839-853. Vorgestellt wird das danische interregionale allgemeine Gleichgewichtsmodell LINE sowie dessen Fremdenverkehrs-Untermodell. Anhand dieses Modells wird die Bedeutung des Fremdenverkehrs fur regionale Wirtschaften analysiert, und es werden die Multiplikatoren fur den regionalen Fremdenverkehr aufgeschlusselt. Der Unterschied zwischen direkten und abgeleiteten Auswirkungen wird untersucht, und es werden mit Hilfe des Modells di...

The Economic Sustainability of Tourism Growth through Leakage Calculation

“…These previous studies have been conducted in various regions in different continents such as the Seychelles (Archer and Fletcher, 1996), Hawaii (Zhou et al, 1997), Kenya (Akama, 2000), Egypt (Shaalan, 2005), Denmark (Zhang et al, 2007), Brazil (Blake et al, 2008), and Uganda (Sandbrook, 2010). This fact is interesting as it reveals the variables that are common to all regions, thus enabling us to generalize a model.…”

Economic effects of tourism and its influencing factors

“…[...] As a result, it [the IO model] does not capture the feedback effects, which typically work in opposite directions to the initial change" (Dwyer et al 2004, p. 307;Armstrong, Taylor 2000, p. 56 ff.). As important improvements to the IO social accounting matrices (SAM) (Wagner 1997) and computable general equilibrium models (CGE) 1 (Dwyer et al 2004) were proposed, which are able to incorporate resource restrictions and feedback effects (Zhang et al 2007). The CGE are most likely the most advanced group of multiplier models overcoming many of the overestimation effects of IO-models (Blake 2005;Song et al 2012), even though they still have their drawbacks.…”

Differentiated effect of advertising: Joint vs. separate consumption

“…As explained latter, the results of this paper present relevant managerial implications for the horizontal cooperative advertising strategy. Note that in those regions where tourism-led development has become a central objective in their agenda, joint advertising emerges as a way to look for synergies (Biagi & Detotto, 2012): not only do regional decision-makers want to know the regional economic impacts of tourism (Zhang, Madsen, & Jensen-Butler, 2007) but also how to make people come to their destinations. Through promotional campaigns, regions attempt to become more appealing to potential visitors.…”