Measurement of Employment Generation
Employment is, together with income generation, the most important benefit of tourism development. The measurement of the employment impact can be divided in two groups:
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The supply approach
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tourism-related sectors
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minimum requirement method
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The demand approach
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the national accounts method
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the tourism satellite account approach
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the Henderson-Cousins method
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the input-output approach
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the multiplier method.
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The Supply Approach
In tourism research, two supply approaches are quite often applied. The first can be called 'employment in tourism-related sectors', and is simply an addition of the employment (self-employed and employee) in sectors that are considered to be tourism-related, such as accommodation, restaurant, caf s, etc. The result is an overestimation of the number of jobs. Many of the firms working in these sectors supply not only tourists but also, and sometimes almost only, local residents. Therefore this method has neither a scientific nor a practical value.
The second supply approach, the minimum requirement method, can be more relevant, particularly in smaller areas or destinations. It should be implemented in different steps. First, the relevant sectors for tourism must be defined. The choice of the sectors is less important (e.g. retail trade) than in the preceding supply approach, and the reasons will become clear as we advance to the next steps. Once the relevant sectors have been defined, the employment in those sectors can be registered.
In the following stage, a region without tourism activities and without regional distribution function is defined; this is known as the reference region. In the...