Economic impacts of an increase in the foreign tourism receipts: A sam-based income multiplier analysis for Turkey

Abstract

This   study   aims   at   analyzing   the   impacts   of   an   increase   in   inbound   tourism  receipts   in   Turkey.   To   carry   out   the   analyses   a   social   accounting   matrix   is  developed,  that  explicitly  included  tourism  as  an  aggregate  industry,  by  basing  on  input-­‐‑output  and  tourism  satellite  account  tables.  Income  multipliers  derived  from  this   social   accounting   matrix   are   used   to   reveal   the   effects   on   inter-­‐‑industry  relations,  factor  and  household  incomes.  Empirical  findings  suggest  that  demand  side  shocks  on  tourism  industry  might  be  used  to  boost  the  overall  economy  and  to  cope  with  unemployment  problem.  In  addition,  the  economic  potential  involved  in  tourism  industry  seems  to  be  promising  in  terms  of  reaching  the  intended  targets  declared  in  “Tourism  Strategy  of  Turkey-­‐‑2023”.

Keywords

• Input-­‐‑Output   matrix,   Tourism   satellite   accounts,   Social   accounting  matrix,  Income  multiplier