Measuring the benefits and yield from foreign tourism

Abstract

Since it is necessary to give up real resources, goods and services to provide for the demands of tourists, the net benefits to an economy from tourism growth are typically substantially lower than gross tourism expenditure. Recognizing this, tourism researchers are paying increased attention to the concept of yield so as to inform benefit cost analysis, government policy, marketing strategies and investment decisions in the context of tourism development. First, defines the concept of yield and discusses some problems in its measurement; identifies distortions to the competitive tourism market and the implications for tourism yield; and also explores the relationship between yield and tourism expenditure as an indicator of yield. Concludes that the yield from tourism goes beyond visitor expenditure and should take account of a wide range of economic, environmental and social costs and benefits of tourism development.