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Spillover Effects of Jamaican Tourism Based on the Keynesian Multiplier and Stakeholder Interviews
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Spillover Effects of Jamaican Tourism Based on the Keynesian Multiplier and Stakeholder Interviews
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Description
Rating
Title
Spillover
Effects
of
Jamaican
Tourism
Based
on the
Keynesian
Multiplier
and
Stakeholder
Interviews
Subject
Aggregate
multipliers
,
Keynesian
Multiplier
,
Marginal
Propensity
to
Consume
,
Marginal
Propensity
to
Import
,
Tourism
linkages
,
Tourism
multiplying
effects
Description
Tourism
makes
a
substantial
direct
contribution
to
Jamaica's
economy
by
providing
6%
of
employment
,
substantial
tax
revenues
, and
50%
of
foreign
exchange
earnings
.
Indirect
benefits
increase
when
tourism
revenues
purchase
local
goods
and
services
, and
indirect
benefits
decrease
when
tourism
revenues
escape
the
local
economy
either
by
way
of
imports
or
repatriation
of
foreign-owned
profit
. In
order
to
understand
the
overall
ability
of the
Jamaican
economy
to
convert
incremental
tourism
revenues
into
added
economic
activity
, the
aggregate
Keynesian
multiplier
was
calculated
. The
multiplier
is
low
indicating
that
incremental
tourism
revenues
have
limited
potential
to
create
indirect
benefits
. The
reason
for the
low
multiplier
is
high
imports
,
particularly
with
respect
to
all-inclusive
hotels
.
All-inclusive
hotels
,
which
constitute
75%
of
land-based
stays
,
import
most
of their
consumables
,
capture
most
guest
expenditures
in-house
, and
send
a
large
portion
of their
profits
overseas
. In
order
to
increase
tourism's
indirect
contribution
to the
local
economy
(inclusiveness)
, the
government
initiated
several
programs
. These
programs
include
increasing
tourist
stays
at
villas
and
apartments
,
increasing
tourist
consumption
of
local
agricultural
goods
, and
increasing
sales
of
local
crafts
.
However
,
interviews
with a
range
of
stakeholders
found
no
evidence
of
progress
in these
areas
.
Thus
, the
conclusion
is
that the
indirect
contribution
of
tourism
is
low
and not
likely
to
improve
substantially
in the
near
term
.
Creator
Harris
,
Mark
Donovan
.
Publisher
UMI
Contributors
Norman
,
Ruth
T
.
Date
2011
Format
PDF
Rights
Harris
,
Mark
Donovan
.
LC Subject Headings
Tourism--Jamaica
,
Jamaica--Economic
conditions
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