Transcript Dwyer.pps - BEST Education Network

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Pro Poor Tourism Yield
Larry Dwyer
University of NSW
Background
Measures of Tourism Yield have been developed
by Australian Researchers (Dwyer, Forsyth,Jago,
Fredline, Deery, Lundie)





Report for STCRC
Tourism Economics
Journal of Sustainable Tourism
Tourism Review International
International Journal of Tourism Research
Pro-poor Tourism
Pro-poor tourism researchers are attempting to
develop measures of pro-poor tourism yield
MPDF Workshop in Cambodia, December 2008
 This workshop considered two broad sets of questions:
• How, when and where does/can tourism alleviate poverty and/or have a
development impact?
• How can all the stakeholders (public, private, donors) achieve
maximum ROI in the short, medium and long term?
 What are the links between the two research
agenda?
AIMS
 What are the links between the two research agenda?
 First, provide a overview of yield measurement in the
tourism literature
 Second, provide an overview of the MPDF method for
developing pro-poor yield measures, discussing the
advantages and limitations
 Third, discuss ways that the MPDF pro-poor measures can
be improved so as to provide better indicators of the extent
to which tourism alleviates poverty
Standard Yield Measure
 Yield as expenditure per trip or by night
associated with different market segments
Advantages of Expenditure Yield Measures
delivers a practical outcome that drives
 tourism planning
 new product development
 marketing
 towards the highest yielding niche markets
can be employed by tourism operators at the
level of the individual firm and also by
destination managers
Limitations of Expenditure Yield measures #1
• gross expenditure does not in itself provide
information on what goods and services tourists
purchase
• it is of little value per se to operators since it
provides no information on the sectors in which
the money is spent.
Limitation #2
• tourist expenditure is not an indicator of
profitability to firms
• In focusing on sales revenues, the expenditure
measures neglect the aggregate costs of
providing the services to each segment
Limitation #3
• gross tourist expenditure is only a partial indicator
of the impacts on the economy because it
includes the import content of the goods and
services purchased by tourists.
Limitation #4
• the expenditure measure of yield does not indicate
the economic impacts of tourist expenditure
• These impacts include contribution to Gross
Domestic (or regional) Product, Gross Value
Added, and employment
• Tourist expenditure is not directly proportional to
its economic impacts
Limitation #5
• Expenditure measures don’t provide information
on spread of impacts in the wider destination
• it may be useful to know where the visitors in each
market segment spend their money.
• the economic effects on income and employment
will differ according to the location of the tourist
expenditure
Limitation #6
• expenditure injections per se tell us nothing about
the social or environmental costs and benefits
associated with different visitor market segments
TSA based Yield Measures
 Yield as Contribution to Gross Domestic Product
 Tourism Yield = Contribution of tourism to GDP / tourism consumption
of the goods and services produced by the tourism industry
 Yield niche market = Contribution to GDP of sales to the particular
niche market / tourism consumption by the niche market
 Yield as Contribution to Tourism Employment
 Tourism Employment Yield = Contribution of tourism to employment /
tourism consumption of the goods and services produced by the
industry
 Tourism Employment Yield for a niche market = Contribution to tourism
employment of sales to the particular niche market / tourism
consumption by the niche market
CGE based Economy wide yield measures
 Yield as impact on Gross Domestic Product
 Tourism Yield = impact on GDP / tourism expenditure
 Yield niche market = impact on GDP of sales to the
particular niche market / tourism expenditure by the niche
market
 Yield as impact on employment
 Tourism Employment Yield = impact on employment /
tourism expenditure
 Tourism Employment Yield for a niche market = impact on
employment of sales to the particular niche market /
tourism expenditure by the niche market
Real GDP per visitor and per visitor night by Origin Country
5 types of Pro poor Yield measures
1. Local expenditure yield
Plus three livelihood measures:
2. employee pro-poor income yield
3. tourism supplier pro-poor yield
4.direct seller pro-poor yield
Plus
5. pro-poor employment yield
Local Expenditure Yield
 to derive Local Expenditure Yield
Deduct the amount of leakages from the gross expenditure data
 This involves estimating the import content of each of the
different types of goods and services purchased by tourists
 Thus we determine which tourist markets have the greatest
local expenditure effect
The following Local Expenditure Yield measures can
be estimated:
 Nationally, for key tourist markets per trip, and per dollar spent eg. average
local expenditure per day in Cambodia by visitor from USA
 Nationally, for key tourist markets by sector eg. average local expenditure
per day on accommodation, F+B, shopping, transport) in Cambodia by
visitor from USA
 Regionally, for key tourist markets per trip and dollar spent eg, average local
expenditure per day in Siem Reap by visitor from USA
 Regionally, for key tourist markets by sector eg. average local expenditure
per day on accommodation in Siem Reap by visitor from USA
Total
expenditure
$
Per $
Local
USA
Local
UK
USA
Σ
Σ
Total
Expenditure
UK
Σ
Σ
Per $
$
Accom F&B
USA
Accom F&B
UK
Accom F&B
USA
Accom F&B
UK
2. Pro-poor employee income yield measure
Pro-poor employee income yield by sector = propoor employee income generated by sector/ total
employee income generated by the sector (total and
per $ spend)
Pro-poor employee income yield by visitor market
= pro-poor employee income generated by visitor
market/total employee income generated in total or by
sector (total and per $ spend)
Pro-poor employee income yield = pro-poor
employee income / total employee income
Total
employee
income
$
Per $
Pro poor
Accom
F&B
Shopping
Accom F&B
USA
F&B
Shopping
Σ
Σ
Total
employee
income
Accom
Σ
Accom F&B
UK
Σ
Per $
Accom F&B
USA
Accom F&B
UK
3. tourism supplier pro-poor income
• Pro-poor supplier income by sector: For each tourism sector
estimate sector purchases from poor suppliers as proportion of
total inputs purchased
• Pro-poor supplier income by sector by visitor market: For
each tourism sector estimate sector purchases from poor
suppliers as proportion of total inputs purchased, by visitor
market percentage of total market for that sector
• Aggregate measure of pro-poor supplier income by visitor
= pro-poor supplier income per dollar spent by tourists from
each visitor market
• Aggregate measure of pro-poor income: add the pro-poor
supplier income across all sectors
Total
Supplier
income
$
Per $
Pro poor
Accom
F&B
Shopping
Accom F&B
USA
F&B
Shopping
Σ
Σ
Total
Supplier
income
Accom
Σ
Accom F&B
UK
Σ
Per $
Accom F&B
USA
Accom F&B
UK
Direct Seller pro-poor income
 The estimation of direct sales to tourists by people from
poor backgrounds (souvenirs, drinks etc) poses
measurement difficulties. But, to derive yield measures
 Estimate gross expenditure associated with different
visitor markets
 Estimate the amount of expenditure that is allocated
directly to sellers from poor backgrounds
 can be converted to a yield measure for each sector and
converted into per dollar spent
Direct
Seller
income
Per $
Drinks
Souvenirs
Direct
Seller
income
Drinks
Souvenirs
Per $
USA
UK
USA
UK
Pro-poor Employment Measures of Yield
• Pro-poor employment yield measures can be expressed as
numbers of persons from poor backgrounds who are employed
as income earners in the tourism industry.
• Pro-poor employment by sector: numbers of persons from
poor backgrounds who are employed in each sector as income
earners in the tourism industry as employees, suppliers or
direct sellers
• Pro-poor employment by tourist market = numbers of
persons from poor backgrounds who are employed as income
earners in the tourism industry as employees, suppliers or
direct sellers supported by the expenditure of each visitor
market
Employment
No. of
persons
Accom
F&B
No. of
persons
USA
UK
JAP
Aggregate Measures
 Pro-poor income =
Employee income + supplier income + direct seller income
 Pro-poor yield = pro-poor income/tourist expenditure
 Pro-poor income by sector = pro-poor income by sector/
tourist expenditure for that sector
 Pro-poor income by visitor market = pro-poor income by
visitor market/ visitor expenditure for that market
 Pro-poor employment by sector and visitor market
Σ
Pro poor income
°
°
T exp
Pro poor yield over time
°
Time
Pro poor income
T exp
°
°
°
°
By sector
Time
Pro poor income
T exp
°
°
°
°
By visitor market
Time
Conclusions
• Demonstrates Importance of construction of TSA
in developing economies
• Demonstrates Importance of construction of CGE
in developing economies
• Work is continuing to refine and develop relevant
measures of pro-poor tourism yield
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