Estimating the magnitude of tourism in the European Community: data deficiencies and some results

Abstract

The main purpose of this paper is to provide estimates of the magnitude of the contribution of total tourism payments to overall economic activity and employment in each of the member states of the European Community (EC). The paper has two subsidiary objectives - to highlight the dearth of reliable financial data relating to the tourism sector and to outline some important economic effects of international tourism payments in the EC. The paper is based on part of a larger study prepared for the Commission of the European Communities (see O'Hagan, Scott and Waldron, 1986). The most complete data set relates to international tourism payments and, as such, it is in relation to this aspect of tourism that most analysis of data is possible. However, even these data can be very unreliable, especially when they refer to bilateral tourism flows. Nonetheless, even with the inadequate data base, it can be demonstrated that international tourism payments do have important economic effects in the EC. All of these issues are discussed in Section 2. The data on international tourism payments do not include payments to international carriers Information in relation to the latter, in fact, is available for only two member states. A similar dearth of information exists in relation to domestic tourism payments. Thus, to arrive at estimates of total tourism payments (international plus carrier plus domestic) methods for estimating international carrier payments and domestic tourism payments had to be developed. These methods, as well as the resulting estimates of the contribution of total tourism payments to overall economic activity, are discussed in Section 3. Section 4 attempts to ascertain the level of employment (direct and indirect) likely to be associated with this tourism activity. Once again, the estimates only indicate broad orders of magnitude, but given the available data they are probably the best that can be provided. Section 5 concludes the paper. The most comprehensive and useful definition of tourism is the following: i Tourism travel by a 'tourist', i e a person away from the usual place of residence ('home') for a holiday, business trip, family visit, conference or other meeting (scientific, diplomatic, religious, sporting, etc ), excludes travel regularly undertaken to places of work or education, e g daily commuters, comprises - international tourism, travel outside the country of residence for at least 24 hours, - national tourism travel within the country of residence (EUROSTAT 1980, p LVIII) Tourism payments, as understood in this paper, are all payments associated with tourism so defined. Tourism employment includes all direct and indirect employment associated with tourism so defined, but not induced employment.