CONTRIBUTION OF THE TURKISH TOURISM INDUSTRY TO THE NATIONAL ECONOMY
Abstract
The paper examines the contribution of the Turkish tourism industry to the national economy as of components of gross domestic output. In this respect domestic tourist expenditures, government spending in tourism, private sector tourism investment spending, inbound and outbound tourist expenditures have been analyzed over the last 15 years in which the industry has developed very rapidly. It should be noted that the paper excludes the following points; employment created, value added created, direct and indirect taxes and similar payments, and indirect effects of tourist and investment spending. The paper presents quantitative data in the USA dollar term for the last 15 years in order to show the trends of development, and interprets them. Meantime the papers raises the issues related with the method such as data gathering, processing and measurement problems. The paper gives particular attention to the government involvement in the tourism industry. In order to attract private sector investments, the Turkish governments provided financial incentives which was responded immediately by the private sector, so that physical capacity of the lodging industry increased very rapidly. However the paper aims to look at this matter from cost and benefit point of view, and puts the questions of effectiveness of financial incentives and the amount of capacity created. Some concluding remarks were made on the relationship between rapid development of physical capacity and current structural problems of the industry.
Keywords
CONTRIBUTION OF THE TURKISH TOURISM INDUSTRY TO THE NATIONAL ECONOMY
Abstract
The paper examines the contribution of the Turkish tourism industry to the national economy as of components of gross domestic output. In this respect domestic tourist expenditures, government spending in tourism, private sector tourism investment spending, inbound and outbound tourist expenditures have been analyzed over the last 15 years in which the industry has developed very rapidly. It should be noted that the paper excludes the following points; employment created, value added created, direct and indirect taxes and similar payments, and indirect effects of tourist and investment spending. The paper presents quantitative data in the USA dollar term for the last 15 years in order to show the trends of development, and interprets them. Meantime the papers raises the issues related with the method such as data gathering, processing and measurement problems. The paper gives particular attention to the government involvement in the tourism industry. In order to attract private sector investments, the Turkish governments provided financial incentives which was responded immediately by the private sector, so that physical capacity of the lodging industry increased very rapidly. However the paper aims to look at this matter from cost and benefit point of view, and puts the questions of effectiveness of financial incentives and the amount of capacity created. Some concluding remarks were made on the relationship between rapid development of physical capacity and current structural problems of the industry.
Keywords
