Economic Impact Of Tourism On Economic Impact On Tourism

Literature Review A summary of literature on economic impact of tourism has been depicted throughout this review to explore the methodologies used and their uses in estimating the economic impact of tourism. There is a need to conduct economic impact analysis of tourism – as tourism activity cannot be regarded as an isolated economic activity. A number of authors have contributed towards the area of EIA and have employed several methodologies covering input-output model, Keynesian multiplier model, social accounting matrix model and computable general equilibrium modelling The review search strategy was supplemented by making reference to existing literature reviews in the area of economic impact assessment (Reeves, 2002; Mazumder, Al-Amin†¦show more content†¦The findings of the study confirmed the cultural sector was a significant employer, and it highlighted differential earnings across the sector and  £5 billion was estimated to be generated through consumer expenditure (Reeves, 2002:9). In The Economic Importance of the Arts in Great Britain Myerscough (1988) demonstrated, through use of the multiplier, that direct spending on the arts led to spending in other sectors of the economy, which in turn enhanced wealth and job creation, and made cities appear more attractive to citizen and companies. The author points out some of the far-reaching impacts on the cultural sector and increased need for public funding. Policymakers have argued cultural industries can make an effective contribution to wealth creation, invisible exports and employment. Their potential for transforming many areas of existing practice, inspiring new producers, and for providing skills and competencies such as innovation, originality, creativity and problem-solving which could be effectively fostered for regional and local economies, was increasingly recognised (Reeves, 2002:10). Section Two - Visitor Spending Tourism has grown rapidly in the last two decades