Economics of Tourism Destinations

Chapter 2: The Measurement of Tourism

Introduction

Measurement of tourism activity is important for both public and private sectors. Without reliable data it is impossible to demonstrate the economic importance of the sector in terms of value added, employment, exports and imports.In many countries the amount of tourism activity is still underestimated due to a lack of correct statistical information.An efficient policy also requires data on the supply and demand structure and the development of the sector. Furthermore, a good information system is the basis for a good planning process at the local and regional levels. Strategic planning (both marketing and physical) begins with a situation analysis which are the priority markets, what is the necessary capacity of hospitals, parking, waste treatment installations, police force, etc.?

The characteristics dealt with in Chapter 1 already provide an indication that it is not easy to measure tourism activities of a country or region. What is the tourism demand and supply of a country? This is a very important question, as the answer provides the basis for the economic impact analysis.

At the risk of oversimplification, until recently tourism supply was defined only in terms of the numbers of beds, rooms, camping places, etc., and tourism demand was expressed only in the numbers of arrivals and nights. From Chapter 1 it is evident that the numbers of rooms and arrivals provide a poor indicator of the tourism activity of a country. These statistics are useful, but far from complete. This explains the numerous efforts, mainly over the last...

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