**Table Table Name**

price - current prices

price - current prices

visitors: net basis - current prices

visitors: gross basis - current prices

prices - at prices of previous period

prices - at prices of previous period

visitors: net basis - at prices of previous period

visitors: gross basis - at prices of previous period

21 13 Characteristic tourism industries' gross capital acquisition 22 14 Characteristic tourism industries' gross capital stock

*Tourism Satellite Accounts and Employment, OECD 2000 P59-85*

**5. Tourism satellite accounts case studies** 

Economic Cooperation and Development Manual in 2000

2 2

3 2A

4 3

5 3A

15 10

16 10A

17 11

18 11A

19 12

20 12A

States of America.

period

previous period

sector). Then they went to a restaurant recommended by the concierge of the hotel, and despite waiting in line for 30 minutes, enjoyed wonderful steak (restaurant sector).

Let's look at more details in what Nicole's family purchased in New York. All the goods and services that they purchased were mostly from the Services sector, but can you tell by the characteristics of the product which products can be easily distinguished as "tourism products"? Banking services can be purchased not only by visitors (leisure visitors = tourists, and non-leisure visitors = non-tourists) but also by non-visitors who live and work in New York, which is one of the thriving large metropolitan cities in the Unites States. Retail shops, such as Seven-Eleven, can be used by both visitors and non-visitors. As you can see, not only visitors but also local residents would take taxis. Souvenirs and snack may be purchased by both visitors and non-visitors, and the same applies to entertainment products. Last example was the consumption at restaurant. While tourists such as Nicole's family can surely come to spend good amount of money at restaurants, also non-visitors come to enjoy the food. So the supply-based product characteristics will not work well to define tourism. Indeed, the concept of tourism is demand-based.

#### **3.3.3 Demand-based concept of tourism**

When we think about tourism, we have to look at demand-side. This is a very unique point of extracting tourism-related consumption from all the consumption. We will build up tourism-related economic activities by looking at who purchased the product, and decide whether such purchase was caused by a visitor. We cannot assert that all the revenues at the Steak restaurant were caused by visitors only, because tourists love to come to the place. Indeed, the identical Steak dishes may be consumed by tourists at one table and by nonvisitors (local residents) at the next table. We will look into the basic structure of TSA tables.

#### **4. Compositions tourism satellite accounts**

While detailed logics and explanations are shown in the comprehensive OECD manual (OECD 2000), it showed detailed suggested tables for TSA without actual numbers.

In general, TSA study would include, but not limited to, the following concepts and discussions.


sector). Then they went to a restaurant recommended by the concierge of the hotel, and

Let's look at more details in what Nicole's family purchased in New York. All the goods and services that they purchased were mostly from the Services sector, but can you tell by the characteristics of the product which products can be easily distinguished as "tourism products"? Banking services can be purchased not only by visitors (leisure visitors = tourists, and non-leisure visitors = non-tourists) but also by non-visitors who live and work in New York, which is one of the thriving large metropolitan cities in the Unites States. Retail shops, such as Seven-Eleven, can be used by both visitors and non-visitors. As you can see, not only visitors but also local residents would take taxis. Souvenirs and snack may be purchased by both visitors and non-visitors, and the same applies to entertainment products. Last example was the consumption at restaurant. While tourists such as Nicole's family can surely come to spend good amount of money at restaurants, also non-visitors come to enjoy the food. So the supply-based product characteristics will not work well to

When we think about tourism, we have to look at demand-side. This is a very unique point of extracting tourism-related consumption from all the consumption. We will build up tourism-related economic activities by looking at who purchased the product, and decide whether such purchase was caused by a visitor. We cannot assert that all the revenues at the Steak restaurant were caused by visitors only, because tourists love to come to the place. Indeed, the identical Steak dishes may be consumed by tourists at one table and by nonvisitors (local residents) at the next table. We will look into the basic structure of TSA tables.

While detailed logics and explanations are shown in the comprehensive OECD manual

In general, TSA study would include, but not limited to, the following concepts and

(OECD 2000), it showed detailed suggested tables for TSA without actual numbers.

5. Defining names of Tourism Industries and Corresponding Tourism Commodities 6. Production Table (Make Table) of Tourism Commodities and identification of the

7. Supplies and Consumptions of Tourism Commodities and All Other Commodities 8. Decomposition of Total Demand for All Commodities into Tourism Demand for Tourism Commodities, then Further Decomposition of Tourism Demand into different

despite waiting in line for 30 minutes, enjoyed wonderful steak (restaurant sector).

define tourism. Indeed, the concept of tourism is demand-based.

**3.3.3 Demand-based concept of tourism** 

**4. Compositions tourism satellite accounts** 

1. Definitions of visitors, usual environment

Producers of those Tourism Commodities

type of Visitors for Various Commodities

10. Tourism Employment and Compensation

9. Tourism Output, Intermediate Needs and Value Added

3. Meaning of Tourism Industries and Tourism Commodities

4. Reviewing the examples of Tourism Commodities and the producers

2. Definition of Tourism Demand

discussions.

"Measuring the Role of Tourism in OECD Economies - OECD Manual on Tourism Satellite Accounts and Employment" 2000 shows their recommendation of 22 tables (including 13 types of table with sub-categories) whose titles are shown in Table 1.


*Source: compiled by the author from "Measuing the Role of Tourism in OECD Economies - The OECD Manual on Tourism Satellite Accounts and Employment, OECD 2000 P59-85*

Table 1. List of Tables in Tourism Satellite Accounts Recommended by Organisation for Economic Cooperation and Development Manual in 2000

These tables are more like manual and official guidance of formats for economists who have knowledge on System of National Accounts. In the classroom setting, however, hospitality and tourism students found rather difficult to maintain their attention to follow the logics of subsequent TSA tables without seeing the actual numbers. Due to the limitations of space in this chapter, I will quote some of the important tables with actual TSA data of the United States of America.

#### **5. Tourism satellite accounts case studies**

In the first section, we will review all the processes of how the Tourism Satellite Accounts are created by following one of the best and freely available technical papers available

Introduction to Tourism Satellite Accounts 123

column from left), how many jobs are attributed to tourism activities (range between 3.7 million to 4.3 million jobs: third column from left), and relative share of those tourism activities in the whole U.S. economy by percentages shown in three columns from right under the heading of "percent". So we see the goal of TSA output at the beginning as a summary. In this example, I will not discuss the TSA with three methods, but rather on one

As you can see, these data will be very valuable for policy makers, taxpayers, government officials. If you know the relative size and significance of tourism activities as a quasi industrial sector, you can compare the tourism industry with other existing industries. Once the tourism as an industrial sector can be put in perspective, there can be rational discussions on how much of government and taxpayers resources should be allocated into this industrial sector, how much of educational resources be allocated to students and workers in these sectors, or how important is the development of this particular sector for

Table 3 "Classification of Commodities in the Travel and Tourism Accounts" shows the description of tourism commodities and its contents. If you are a casual consumer of TSA, you may not find this table useful so often. If you have to develop TSA for your region/nation, suddenly this table would become useful beacon for your assignments regarding what should be included or excluded in each commodity categories. One thing I should mention would be the existence of non-tourism commodities at the bottom of the table. For example, if you look at commodities of gasoline and oil, they are not as much a tourism commodities as a rainbow T-shirt saying "Costa del Sol". But tourists in the USA probably spend more money to buy this commodity than on T-shirts. because tourists purchase these non-tourism commodities, those should be listed as non-tourism

Table 4 shows the names of tourism industries and their corresponding commodities. Commodities are those items, tangible and intangible goods or services to be consumed by tourism activities (of visitors and non-visitors) and industries are those which produce respective commodities. If you have to produce regional/national TSA to measure the

You may wonder if most of the industries produce only the corresponding commodities. For example, do you think whether Hotel and lodging places as an industry produce only the

Tourism commodities are tourism-related goods and services that are purchased by visitors,

That may be enough explanations if you had prior education as an economist. Tourism and hospitality students will also understand the meaning precisely only if at least one example

non-visitors for final consumption and by other industries as intermediate goods.

method to explain the structure.

**5.1.2 Tourism commodities** 

commodities that tourists purchase.

**5.1.3 TSA industries and commodities** 

tourism activities in the study region, this table will be useful.

commodity called the Hotel and lodging places?.

is presented.

the creation of employment for the citizens, etc.

today. Even though the absolute data may appear outdated, the structures and explanations are clear and remain valid to stand the passage of time. The sequences of explanations are in line with those presented by Hara (2008).

#### **5.1 TSA at Unites States' federal level**

In the United States, Bureau of Economic Analysis (BEA), Department of Commerce's team developed series of papers on TSA, including the one called "U.S. Travel and Tourism Satellite Accounts for 1992" by S. Okubo and M. Planting, P8-22, Survey of Current Business July 1998, Bureau of Economic Analysis, U.S. Department of Commerce. Teams at BEA already published several updates after the original paper by Okubo and Planting, but the basic framework and sequences of the presentation are still along those presented in the first work. With prior permission of the Dr. Sumiye Okubo, we will look at how respective tables are created one by one, so that we will understand the logics and contents of typical TSA presentations with real numbers. Please note that responsibilities for comments and opinions belong to me, and may not necessarily reflects exactly those of the Dr. Okubo and Mr. Planting.

In the Unites States, TSA is called Travel and Tourism Satellite Accounts (TTSA), which is the same in substance as TSA. The report starts with summary of the whole study and shows the results of the measurement of size and impact of the tourism activities in the United States.

#### **5.1.1 Summary display**

Their table 1 is the display of summary results, which, in terms of sequence, is something that you will typically create at the end of the all other work. This is a table which appears as an abstract.


Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced with the Permission obtained by the author

Table 2. Key Indicators of Tourism Activity: Range of Estimates, 1992

This table is the final product of TSA work, which includes how large the tourism demand is (range between \$284.2 billion and \$332.8 billion: first column from left), how large the value added of tourism activities are (range between \$120.5 billion and \$135.7 billion: second

today. Even though the absolute data may appear outdated, the structures and explanations are clear and remain valid to stand the passage of time. The sequences of explanations are in

In the United States, Bureau of Economic Analysis (BEA), Department of Commerce's team developed series of papers on TSA, including the one called "U.S. Travel and Tourism Satellite Accounts for 1992" by S. Okubo and M. Planting, P8-22, Survey of Current Business July 1998, Bureau of Economic Analysis, U.S. Department of Commerce. Teams at BEA already published several updates after the original paper by Okubo and Planting, but the basic framework and sequences of the presentation are still along those presented in the first work. With prior permission of the Dr. Sumiye Okubo, we will look at how respective tables are created one by one, so that we will understand the logics and contents of typical TSA presentations with real numbers. Please note that responsibilities for comments and opinions belong to me, and may not necessarily reflects exactly those of the Dr. Okubo and

In the Unites States, TSA is called Travel and Tourism Satellite Accounts (TTSA), which is the same in substance as TSA. The report starts with summary of the whole study and shows the results of the measurement of size and impact of the tourism activities in the

Their table 1 is the display of summary results, which, in terms of sequence, is something that you will typically create at the end of the all other work. This is a table which appears as

> Employment (thousands)

NOTE: See the section "Methodological Overview" for a discussion of the three methods. Source: Table 1, p8, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced with the

This table is the final product of TSA work, which includes how large the tourism demand is (range between \$284.2 billion and \$332.8 billion: first column from left), how large the value added of tourism activities are (range between \$120.5 billion and \$135.7 billion: second

Method 1 284.2 120.5 3,749 4.6 1.9 3.2 Method 2 294.9 124.5 3,933 4.7 2 3.3 Method 3 332.8 135.7 4,353 5.3 2.2 3.7

Table 2. Key Indicators of Tourism Activity: Range of Estimates, 1992

Percent

Share of GDP Share of Demand Value employment added

line with those presented by Hara (2008).

**5.1 TSA at Unites States' federal level** 

Mr. Planting.

United States.

an abstract.

**5.1.1 Summary display** 

Demand

(billions of dollars)

Permission obtained by the author

Value added (billions of dollars)

column from left), how many jobs are attributed to tourism activities (range between 3.7 million to 4.3 million jobs: third column from left), and relative share of those tourism activities in the whole U.S. economy by percentages shown in three columns from right under the heading of "percent". So we see the goal of TSA output at the beginning as a summary. In this example, I will not discuss the TSA with three methods, but rather on one method to explain the structure.

As you can see, these data will be very valuable for policy makers, taxpayers, government officials. If you know the relative size and significance of tourism activities as a quasi industrial sector, you can compare the tourism industry with other existing industries. Once the tourism as an industrial sector can be put in perspective, there can be rational discussions on how much of government and taxpayers resources should be allocated into this industrial sector, how much of educational resources be allocated to students and workers in these sectors, or how important is the development of this particular sector for the creation of employment for the citizens, etc.

#### **5.1.2 Tourism commodities**

Table 3 "Classification of Commodities in the Travel and Tourism Accounts" shows the description of tourism commodities and its contents. If you are a casual consumer of TSA, you may not find this table useful so often. If you have to develop TSA for your region/nation, suddenly this table would become useful beacon for your assignments regarding what should be included or excluded in each commodity categories. One thing I should mention would be the existence of non-tourism commodities at the bottom of the table. For example, if you look at commodities of gasoline and oil, they are not as much a tourism commodities as a rainbow T-shirt saying "Costa del Sol". But tourists in the USA probably spend more money to buy this commodity than on T-shirts. because tourists purchase these non-tourism commodities, those should be listed as non-tourism commodities that tourists purchase.

#### **5.1.3 TSA industries and commodities**

Table 4 shows the names of tourism industries and their corresponding commodities. Commodities are those items, tangible and intangible goods or services to be consumed by tourism activities (of visitors and non-visitors) and industries are those which produce respective commodities. If you have to produce regional/national TSA to measure the tourism activities in the study region, this table will be useful.

You may wonder if most of the industries produce only the corresponding commodities. For example, do you think whether Hotel and lodging places as an industry produce only the commodity called the Hotel and lodging places?.

Tourism commodities are tourism-related goods and services that are purchased by visitors, non-visitors for final consumption and by other industries as intermediate goods.

That may be enough explanations if you had prior education as an economist. Tourism and hospitality students will also understand the meaning precisely only if at least one example is presented.

Introduction to Tourism Satellite Accounts 125

Arrangement of passenger transportation Arrangement of passenger transportation

Membership sports and recreation clubs Participant sports (golf, tennis, etc.)

Industries producing nondurable PCE goods Personal consumption expenditures

Source: Table 4, p13, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced with the Permission obtained by

You can find that the Hotel sector produces another commodity called "Eating and Drinking Places". Again, you have to imagine your hotel stay. Can you look for restaurant experience at the hotel? With exception of certain segment of hotels which exclusively offer only hotel rooms, many hotels have limited or full service restaurant units. Depending on the location of the hotel business, the hotel's production of restaurant commodity component could be substantial. For example, in some cities in the Middle East, it is quite common that significant hotels revenue can be attributable to sales at their Food and Beverage operations, as the role of hotels in the society is oriented more towards as a social place to meet and

Hotels and lodging places Hotels and lodging places Eating and drinking places Eating and drinking places

Railroads and related services Passenger rail

Water transportation Passenger water

Professional sports clubs and promoters Sports events

Gasoline service stations Petroleum retail margins Retail, excluding eating and drinking places and gasoline service stations Other retail margins

Taxicabs Taxicabs

Miscellaneous amusement and recreation services (except membership sports and recreation clubs); racing, including track operation; marinas; libraries, museums, art galleries, and botanical and zoological gardens

Motion picture theaters; dance studios, schools, and halls; theatrical producers (except motion pictures), bands, orchestras, and entertainers

Automobile parking, automotive repair shops and services, and toll

(Travel by U.S. residents abroad has no industry counterpart. U.S. residents traveling abroad purchase commodities that are produced abroad, and the TTSA's include only

Table 4. TTSA industries and commodities

In this table, your knowledge on I-O will be valuable.

Local and suburban transit and interurban highway passenger

transportation, except taxicabs

Automotive rental and leasing, without drivers

Air transportation

highways

the author

dine.

All other industries

domestically produced commodities)

Industry Commodity

Passenger bus and other local

Domestic passenger air fares International air fares

Recreation and entertainment

(PCE) nondurable commodities

Wholesale trade margins and transportation costs Gasoline and oil

Travel by U.S. residents abroad

tolls

Movie, theater, ballet, and musical events

Parking, automotive repair, and highway

Auto and truck rental Other vehicle rental

transportation

If you are a tourist to visit overseas destination, you stay at the hotel. Imagine yourself in a foreign destination. You may be a French family staying in Prague. You may be a Dutch tourist in Aruba, Serbian tourists in Dubai, UAE, Japanese tourist in Busan, South Korea, or an American in London. What you need to consume as a tourist is the tourism-related product - a comfortable and convenient place to stay for the duration of your visit, which is produced by the hotel industry. To put this transaction in TSA perspective, we see that a tourist consumed the tourism-related product called "Hotel and Lodging Places" (in the row), which is produced by the hotel industrial sector called "Hotel and Lodging Places" (in the column).


Source: Table 3, p12, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced with the Permission obtained by the author

Table 3. Classification of Commodities in the Travel and Tourism Accounts

If you are a tourist to visit overseas destination, you stay at the hotel. Imagine yourself in a foreign destination. You may be a French family staying in Prague. You may be a Dutch tourist in Aruba, Serbian tourists in Dubai, UAE, Japanese tourist in Busan, South Korea, or an American in London. What you need to consume as a tourist is the tourism-related product - a comfortable and convenient place to stay for the duration of your visit, which is produced by the hotel industry. To put this transaction in TSA perspective, we see that a tourist consumed the tourism-related product called "Hotel and Lodging Places" (in the row), which is produced by the hotel industrial sector called "Hotel and Lodging Places" (in the column).

> Includes lodging receipts from hotels, motels, guestrooms, and rooming and boarding houses serving the general public; other receipts of hotels and motels, sporting and recreational camps, and recreational vehicle

Excludes catering services and school lunch sales by State and local

parks, fairs, museums, gambling, and other recreation and amusements

during, or after a trip, such as parking, tolls, and automotive repair

Includes wholesale margins and transportation costs on all goods

Description of commodity Content

parks and camp sites

Tourism commodities:

Domestic passenger air fares Includes receipts from domestic air passengers for airfares, meals and

Other vehicle rental Includes receipts for rental of recreational vehicles and utility trailers Arrangement of passenger transportation Includes commissions for the arrangement of passenger transportation and net receipts for tours Recreation and entertainment Includes miscellaneous entertainment receipts such as amusement

Movie, theater, ballet, and musical events Includes receipts for admissions to movies and theater and music programs

Gasoline and oil Includes sales of gasoline, diesel fuel, lubricating oils, and grease

Selected services Includes receipts for selected services that may be used by tourists on,

Non-tourism commodities ( = commodities not classified as tourism commodities):

Source: Table 3, p12, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced with the Permission obtained by the author

governments Passenger rail Includes receipts from rail passengers for travel and dining and tips Passenger bus and other local transportation Includes receipts from passengers for intercity, charter, and local bus

International air fares Includes receipts from international air passengers Passenger water Includes receipts from passengers for water transportation Auto and truck rental Includes receipts for rental of automobiles and trucks

Participant sports Includes participant sports such as golf and tennis

Travel by U.S. residents abroad Includes travel expenditures by U.S. residents abroad

PCE\* nondurable commodities Includes sales of all other nondurable commodities

services

All other commodities Includes all other commodities not considered above

Table 3. Classification of Commodities in the Travel and Tourism Accounts

Sports events Includes admissions to sports events Petroleum retail margins Includes retail margins on petroleum sales Other retail margins Includes retail margin on all other goods

Wholesale trade margins and transportation

Hotels and lodging places

Eating and drinking places

\*PCE Personal consumption expenditures

costs

Taxicabs Includes taxi fares and tips

Excludes meals served by hotels or motels Includes food and beverage receipts and tips

services and subway and limousine services

beverages, movies, and other receipts


Source: Table 4, p13, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced with the Permission obtained by the author

#### Table 4. TTSA industries and commodities

You can find that the Hotel sector produces another commodity called "Eating and Drinking Places". Again, you have to imagine your hotel stay. Can you look for restaurant experience at the hotel? With exception of certain segment of hotels which exclusively offer only hotel rooms, many hotels have limited or full service restaurant units. Depending on the location of the hotel business, the hotel's production of restaurant commodity component could be substantial. For example, in some cities in the Middle East, it is quite common that significant hotels revenue can be attributable to sales at their Food and Beverage operations, as the role of hotels in the society is oriented more towards as a social place to meet and dine.

In this table, your knowledge on I-O will be valuable.

Introduction to Tourism Satellite Accounts 127

Now that we have two summations of the column and the row being the same number, we

Total Input = 32,449 + (32,615 + 6,372 + 12,807) = 55,913 + 16,613 + 10,428 + 531 + 758 = Total Output. Calculations on these summation show that Total Input equals Total Output in perfect compliance with the principles of I-O table. We can see that prior knowledge on the I-O surely help understand how the TSA tables are structured, because TSA is based on the

Let's start with "Hotel and Lodging Places' commodities" which will show you the logics of how the numbers in rows are displayed. Total productions of "Hotel and Lodging Places" commodities in the Unites States were \$56,220 million, as we see the Domestic Production at the far right number. We can see from this table which industrial sector produced "Hotel and Lodging Places' commodities" by looking at the numbers in the first row. Along the industries, "Hotel and Lodging Places" industry produced \$55,913 million of "Hotel and Lodging Places" commodities (look at the row heading on left), and "Membership sports and Recreation Clubs" produced \$239 million of "Hotel and Lodging Places" commodities. Outside of the tourism related sectors, "All other industries" also provided \$68 million of "Hotel and Lodging Places" commodities. Perhaps we should follow one more example of

Second row is the "Eating and drinking places" commodities which will show production of the commodities by various industrial sectors. Total productions of "Eating and drinking places" commodities in the Unites States were \$268,148 million, as we see the Domestic Production at the far right number. Compared with the comparable number for the "Hotel and Lodging Places" commodities, this number is more than four times larger. We can see from this table which industrial sector produced "Eating and drinking places" commodities

Looking along the industries column, "Hotel and Lodging Places" industry produced \$16,613 million of "Eating and drinking places" commodities (look at the row heading on left). An industrial sector called "Hotel and Lodging Places" (commonly known as "hotels") produced \$16,613 million equivalent of dining experience (perhaps combination of tasty meals, nice drink, good service and nice atmosphere, resulting in intangible commodity as dining experience). By looking at "Eating and Drinking Places" commodity (start from 2nd row heading on your left side of the table) you find many numbers along this row. Here is an important concept to remember: It is not only the restaurant industry (= Eating and Drinking Places industry) which can produce the commodity (= dining experience), but also many other industry can produce the commodity (= dining experience) such as hotels, sport stadium (have you seen people at football stadium with beers, hot dogs and popcorns?), or gas stations.

Having learned which industry produce respective tourism-related commodities in the previous table, you will see the next table showing how the tourism-related commodities are

supplied and who actually consume the tourism-related commodities.

I-O structure, which is also the basis for System of National Accounts.

can equate the Total Input with Total Output.

**5.1.5 Row interpretations** 

row interpretations.

by looking at the numbers in the first row.

**5.1.6 Supply and consumption table (table 6)** 


Table 5. Production Account of Tourism Industries and All Other Industries 1992 (unit: US\$ million)

#### **5.1.4 Column interpretations**

See the first column "Hotel and Lodging Places" industry to discuss on the cell which intersects with Industry Output. You see \$84,243 million. This means the "Hotel and Lodging Places" industry produced the total of \$84,243 million of output. If we recall that Total Output equals Total Input by definition of the I-O structure, then Total Input should equal to the sum of Intermediate Inputs and Value Added component.

Total Input = Intermediate Inputs + Value Added (= Compensation of Employees + Indirect Business Taxes + Other Value Added)

84,243 = 32,449 + (32,615 + 6,372 + 12,807)

See upper part of the same column. Summation of all the commodities that the "Hotel and Lodging Places" industry produced should be equal to the Total Output. The industry produced five different commodities, which are "Hotel and Lodging Places", "Eating and Drinking Places", Recreation and Entertainment", "Other Retail Margins" and "All other Commodities".

Total Output = "Hotel and Lodging Places" + "Eating and Drinking Places"+ "Recreation and Entertainment" + "Other Retail Margins" + "All other Commodities"

84,243 = 55,913 + 16,613 + 10,428 + 531 + 758

Automotive rental and leasing, w ithout drivers

Hotels and lodging places 55,913 .............. ............ .............. ............ ............ ............ ............ .............. ............ 239 ............. ............ ............ .............. ................ ............ 68 56,220 Eating and drinking places 16,613 220,685 ............ .............. ............ ............ ............ ............ .............. 1,222 3,256 13 ............ 2,165 14,484 ................ ............ 9,710 268,148 Passenger rail ............ .............. 1,226 .............. ............ ............ ............ ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ ................ 1,226

Taxicabs ............ .............. ............ .............. 6,614 ............ ............ ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ ................ 6,614 Domestic passenger air fares ............ .............. ............ .............. ............ 48,449 ............ ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ 17 48,466 International air fares ............ .............. ............ .............. ............ 22,605 ............ ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ ................ 22,605 Passenger w ater ............ .............. ............ .............. ............ ............ 4,000 ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ ................ 4,000 Auto and truck rental ............ .............. ............ .............. ............ ............ ............ 14,318 .............. ............ ............ ............. ............ 31 628 ................ 58 59 15,094 Other vehicle rental ............ .............. ............ .............. ............ ............ ............ <sup>420</sup> .............. ............ ............ ............. ............ 4 30 ................ ............ ................ <sup>454</sup> Arrangement of passenger transportation ............ .............. ............ .............. ............ ............ ............ ............ 13,030 ............ ............ ............. ............ ............ .............. ................ ............ ................ 13,030 Recreation and entertainment 10,428 .............. ............ .............. ............ ............ ............ ............ .............. 27,595 10 ............. ............ ............ 295 553 ............ 1,054 39,935 Participant sports ............ .............. ............ .............. ............ ............ ............ ............ .............. 1,956 8,231 ............. ............ ............ .............. ................ ............ ................ 10,187 Movie, theater, ballet, and musical event ............ .............. ............ .............. ............ ............ ............ ............ .............. ............ ............ 21,468 ............ ............ .............. ................ ............ 98 21,566 Sports events ............ .............. ............ .............. ............ ............ ............ ............ .............. ............ ............ ............. 2,867 ............ .............. ................ ............ 1,660 4,527 Petroleum retail margins ............ <sup>13</sup> ............ .............. ............ ............ ............ ............ .............. <sup>48</sup> ............ ............. ............ 25,488 .............. ................ 95 272 25,916 Other retail margins 531 579 ............ .............. ............ ............ ............ <sup>84</sup> .............. 1,111 184 79 27 ............ 482,384 ................ 783 14,165 499,927 Travel by U.S. residents abroad ............ .............. ............ .............. ............ ............ ............ ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ ................ .................. Gasoline and oil ............ .............. ............ .............. ............ ............ ............ ............ .............. ............ ............ ............. ............ ............ .............. 106,426 ............ 7,653 114,079

Arrangem ent of passenger transporta tion

Industries producing recreation and entertainm ent commoditi es *\*3* Members hip sports and recreatio n clubs

**Industry** *\*1*

Industries producing movies, thea-ters, ballet, and musical events *\* 4* 

............ ............ ............ ............ .............. ............ ............ ............. ............ ............ .............. ................ ............ ................

Professional sports clubs and promoters Gaso-line serv-ices sta-tions

Retail excluding eating and drinking places and gasoline services stations

Industries producing nondurable personal consumption expenditure commodities other than gasoline and oil

9,511 821,872

............

43,796 875,179

Automobile park-ing, automotive repair shops and services, and toll highw ays *\* 2*  All other industries

Domestic production (producers' prices) *\* 5* 

13,158

Table 5. Production Account of Tourism Industries and All Other Industries 1992 (unit: US\$

Source: Table 5, p14 U.S. Travel and Tourism Satellite Accounts for 1992, Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced w ith the Permission obtained by the author Original Notes: \*1- Industries are defined on a SIC basis. \*2 - Includes government enterprises. \*3 - Miscellaneous amusement and recreation services (except membership sports and recreation clubs); racing including track operation; marinas; and libraries and museums, art galleries, and botanical gardens. \*4 - Motion picture theaters; dance studios, schools, and halls; theatrical producers (except motion pictures), bands, orchestras, and entertainers. \*5 - The industry output for domestic production is in purchaser's

Parking, automotive repair, and highw ay tolls ............ .............. ............ .............. ............ ............ ............ ............ .............. ............ ............ ............. ............ 2,939 39,123 ................ 68,354 4,566 114,982 Wholesale trade margins and transportation costs ............ .............. 30,110 6 ............ 9,522 7,416 ............ .............. ............ ............ ............. ............ ............ .............. 15,461 ............ 609,457 671,972 All other commodities 758 14,847 2,506 2,714 ............ 7,252 15,265 6,588 78 3,868 ............ 2,086 3,550 530 13,653 381,576 1,443 7,538,648 7,995,362 Industry output 84,243 236,124 33,842 15,878 6,614 87,828 26,681 21,410 13,108 35,800 11,920 23,646 6,444 31,157 560,108 1,325,888 70,733 8,231,223 10,822,647 Intermediate inputs 32,449 124,678 12,934 10,222 2,853 50,188 17,108 10,669 4,781 13,788 5,026 13,252 1,844 9,307 185,152 817,218 32,236 3,245,037 .................. Compensation of employees 32,615 81,265 14,727 13,635 2,258 29,740 4,650 3,733 5,037 10,973 5,348 6,042 3,716 10,038 228,000 237,576 19,474 2,936,215 .................. Indirect business taxes 6,372 14,115 815 111 24 5,629 492 1,621 520 2,249 640 1,043 265 3,720 71,394 28,492 3,040 365,049 .................. Other value added 12,807 16,066 5,366 –8,090 1,479 2,271 4,431 5,387 2,770 8,790 906 3,309 619 8,092 75,562 242,602 15,983 1,684,922 ..................

See the first column "Hotel and Lodging Places" industry to discuss on the cell which intersects with Industry Output. You see \$84,243 million. This means the "Hotel and Lodging Places" industry produced the total of \$84,243 million of output. If we recall that Total Output equals Total Input by definition of the I-O structure, then Total Input should

Total Input = Intermediate Inputs + Value Added (= Compensation of Employees + Indirect

See upper part of the same column. Summation of all the commodities that the "Hotel and Lodging Places" industry produced should be equal to the Total Output. The industry produced five different commodities, which are "Hotel and Lodging Places", "Eating and Drinking Places", Recreation and Entertainment", "Other Retail Margins" and "All other

Total Output = "Hotel and Lodging Places" + "Eating and Drinking Places"+ "Recreation

equal to the sum of Intermediate Inputs and Value Added component.

and Entertainment" + "Other Retail Margins" + "All other Commodities"

million)

Passenger bus and other local transportation

**Commodity** 

Personal consumption expenditures nondurable

prices because it includes margins and transportation costs.

Commodities".

**5.1.4 Column interpretations** 

Hotels and lodging places

Eating and drinking places

............ .............. ............

Railroads and related services *\*2*

Local and suburban transit and interurban highw ay passenge r transportation, except taxicabs *\* 2*  Taxicabs Air transportat ion Water transportat ion

13,158

commodities other than gasoline and oil ............ .............. ............ .............. ............ ............ ............ ............ .............. ............ ............ ............. ............ ............

Business Taxes + Other Value Added) 84,243 = 32,449 + (32,615 + 6,372 + 12,807)

84,243 = 55,913 + 16,613 + 10,428 + 531 + 758

Now that we have two summations of the column and the row being the same number, we can equate the Total Input with Total Output.

Total Input = 32,449 + (32,615 + 6,372 + 12,807) = 55,913 + 16,613 + 10,428 + 531 + 758 = Total Output. Calculations on these summation show that Total Input equals Total Output in perfect compliance with the principles of I-O table. We can see that prior knowledge on the I-O surely help understand how the TSA tables are structured, because TSA is based on the I-O structure, which is also the basis for System of National Accounts.

#### **5.1.5 Row interpretations**

Let's start with "Hotel and Lodging Places' commodities" which will show you the logics of how the numbers in rows are displayed. Total productions of "Hotel and Lodging Places" commodities in the Unites States were \$56,220 million, as we see the Domestic Production at the far right number. We can see from this table which industrial sector produced "Hotel and Lodging Places' commodities" by looking at the numbers in the first row. Along the industries, "Hotel and Lodging Places" industry produced \$55,913 million of "Hotel and Lodging Places" commodities (look at the row heading on left), and "Membership sports and Recreation Clubs" produced \$239 million of "Hotel and Lodging Places" commodities. Outside of the tourism related sectors, "All other industries" also provided \$68 million of "Hotel and Lodging Places" commodities. Perhaps we should follow one more example of row interpretations.

Second row is the "Eating and drinking places" commodities which will show production of the commodities by various industrial sectors. Total productions of "Eating and drinking places" commodities in the Unites States were \$268,148 million, as we see the Domestic Production at the far right number. Compared with the comparable number for the "Hotel and Lodging Places" commodities, this number is more than four times larger. We can see from this table which industrial sector produced "Eating and drinking places" commodities by looking at the numbers in the first row.

Looking along the industries column, "Hotel and Lodging Places" industry produced \$16,613 million of "Eating and drinking places" commodities (look at the row heading on left). An industrial sector called "Hotel and Lodging Places" (commonly known as "hotels") produced \$16,613 million equivalent of dining experience (perhaps combination of tasty meals, nice drink, good service and nice atmosphere, resulting in intangible commodity as dining experience). By looking at "Eating and Drinking Places" commodity (start from 2nd row heading on your left side of the table) you find many numbers along this row. Here is an important concept to remember: It is not only the restaurant industry (= Eating and Drinking Places industry) which can produce the commodity (= dining experience), but also many other industry can produce the commodity (= dining experience) such as hotels, sport stadium (have you seen people at football stadium with beers, hot dogs and popcorns?), or gas stations.

#### **5.1.6 Supply and consumption table (table 6)**

Having learned which industry produce respective tourism-related commodities in the previous table, you will see the next table showing how the tourism-related commodities are supplied and who actually consume the tourism-related commodities.

Introduction to Tourism Satellite Accounts 129

other rooms are sold as intermediate goods to OTCs, which in turn sell the same room to consumers (you and me, visiting orbitz.com or Travelocity.com to buy rooms at Marriott or

"Hotels and lodging places" commodity to be used as intermediate goods and services for other industrial sectors production activities was \$27,260 million, which was larger than the "Personal consumption expenditures" for \$23,680 million. Consumption by governments and their employees was captured under the column "Government expenditures excluding sales" for \$5,637 which is about 10% of total consumption of "Hotels and lodging places" commodity. If you look across the different commodities, there are four other commodities of which consumption from other industrial sectors were larger than personal consumption

When you look at the columns under the Consumption, what you see here are from left to right, Intermediate, Personal Consumption, Investment, Exports, and Government Expenditure. So it is AX, C, I, EX, G. You have Imports (IM) under the supply. With all those information, you can calculate the GDP of the Unites States in 1992 using the numbers at the

This table appears to be a tough one for students to follow. Inclusion of three Methods in the same table adds its complexity on the appearance of the table. Basic structure of this

Hotels and lodging places 56,577 56,577 56,577 56,577 27,260 27,260 27,260 5,637 5,637 5,637 11,342 11,342 11,342 12,338 ............... ............... ............... 1 1 1 Eating and drinking places 268,148 45,431 48,685 58,484 17,917 17,917 17,917 3,696 3,696 3,696 13,812 17,066 26,865 10,006 222,717 219,463 209,664 0.17 0.18 0.22 Passenger rail 1,226 1,226 1,226 1,226 310 310 310 87 87 87 653 653 653 176 ............... ............... ............... 111 Passenger bus and other local transportation 13,158 3,367 3,934 4,898 583 698 893 55 57 61 2,170 2,620 3,385 559 9,791 9,224 8,260 0.26 0.3 0.37 Taxicabs 6,614 1,478 3,002 4,624 748 1,592 2,490 71 152 237 531 1,130 1,769 128 5,136 3,612 1,990 0.22 0.45 0.7 Domestic passenger air fares 48,466 48,466 48,466 48,466 21,971 21,971 21,971 5,187 5,187 5,187 16,773 16,773 16,773 4,535 ............... ............... ............... 111 International air fares 32,413 32,159 32,159 32,159 3,073 3,073 3,073 314 314 314 12,377 12,377 12,377 16,395 254 254 254 0.99 0.99 0.99 Passenger w ater 4,301 4,150 4,150 4,150 ......... ......... ......... ......... ......... ......... 3,138 3,138 3,138 1,012 151 151 151 0.96 0.96 0.96 Auto and truck rental 15,094 12,132 12,132 12,689 8,400 8,400 8,400 1,055 1,055 1,055 2,207 2,207 2,764 470 2,962 2,962 2,405 0.8 0.8 0.84 Other vehicle rental 454 125 209 209 ......... ......... ......... ......... ......... ......... 101 185 185 24 329 245 245 0.28 0.46 0.46 Arrangement of passenger transportation 13,030 2,919 2,919 2,919 ......... ......... ......... 105 105 105 1,975 1,975 1,975 839 10,111 10,111 10,111 0.22 0.22 0.22 Recreation and entertainment 43,643 14,509 15,500 17,547 ......... ......... ......... ......... ......... ......... 9,820 10,811 12,858 4,689 29,134 28,143 26,096 0.33 0.36 0.4 Participant sports 10,187 3,575 3,678 4,781 1,207 1,207 1,207 ......... ......... ......... 1,747 1,850 2,953 621 6,612 6,509 5,406 0.35 0.36 0.47 Movie, theater, ballet, and musical events 21,711 3,973 4,673 6,475 820 820 820 ......... ......... ......... 2,326 3,026 4,828 827 17,738 17,038 15,236 0.18 0.22 0.3 Sports events 5,072 1,464 1,385 1,800 413 413 413 ......... ......... ......... 775 696 1,111 276 3,608 3,687 3,272 0.29 0.27 0.35 Travel by U.S. residents abroad 39,964 39,964 39,964 39,964 10,361 10,361 10,361 ......... ......... ......... 29,603 29,603 29,603 ............... ............... ............... ............... 111 Gasoline and oil 206,964 11,208 11,864 17,485 2,067 2,210 3,434 181 194 300 7,251 7,751 12,042 1,709 195,756 195,100 189,479 0.05 0.06 0.08

Tourism demand

Government

......... ......... ......... ......... ......... .........

Parking, automotive repair, and highw ay tolls 115,163 6,077 7,008 10,852 109 197 303 61 101 158 5,769 6,572 10,253 138 109,086 108,155 104,311 0.05 0.06 0.09 All other commodities 9,172,221 ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... 9,172,221 9,172,221 9,172,221 ... ... ... Total 11,575,930 324,184 334,893 372,748 95,239 96,429 98,852 16,449 16,585 16,837 140,969 150,352 185,532 71,527 11,251,746 11,241,037 11,203,182 ... ... ...

Source: Table 7, p16, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced w ith the Permission obtained by the author

At the top left column of the table 7 , you have "Total demand" column. You see familiar names of commodities, identical from the top commodity "Hotels and lodging places" to the bottom "All other commodities" except margins items in the Supply and Consumption of Tourism and All Other Commodities table. Total demand can be disaggregated into Nontourism demand and Tourism demand, which will be further disaggregated into Business, Government expenditure excluding sales, resident household and Nonresidents.

M ethod 1 M ethod 2 M ethod 3

expenditures excl. sales Resident households

Non-

18,599 20,577 30,658 16,785 1,466,140 1,464,162 1,454,081 0.02 0.02 0.03

M ethod 1 M ethod 2

Nontourism demand ratio 1

M ethod 3

M ethod 1 M ethod 2 M ethod 3

bottom Total rows, if you remember that GDP = C + I + G + EX – IM.

M ethod 1 M ethod 2 M ethod 3 M ethod 1 M ethod 2 M ethod 3 M ethod 1 M ethod 2 M ethod 3

Commodity residents

Total tourism demand Business

**5.1.8 Tourism demand by type of visitor (table 7)** 

1,501,524 35,384 37,362 47,443

Table 7. Tourism Demand by Type of Visitor, 1992

**5.1.9 Tourism demand and non-tourism demand** 

Original notes: \*1 - The tourism commodity ratio is total tourism demand divided by total demand. See the section "Methodological Overview " for a discussion of the three methods.

table can be simply shown as follows.

Total demand

Hyatt hotels).

expenditures.

Personal consumption expenditure nondurable commodities other than gasoline and oil

In the table, you can see two large column groups of Supply and Consumption, and on the row (left), you can see exactly the same commodities items exactly the same order as in the previous table. Indeed, the first column under Domestic Production (producers' prices) is identical to the column which appeared in the far right end of the Production table.


Table 6. Supply and Consumption of Tourism and All Other Commodities, 1992 (Unit in US\$ million)

#### **5.1.7 Interpretation of total supply and total consumption of commodities**

At around the middle of the columns, you find a column in the name of "Total supply", which show the row-wise sums of each commodity. If you look at the first row of "Hotels and lodging places" commodity, \$56,220 million equivalent of "Hotels and lodging places" commodity were supplied by the "Domestic production" (top, far left) of which details can be traced back in the previous table. "Hotels and lodging places" commodities are supplied by "Government sales" for \$357 million, making the total supply of "Hotels and lodging places" commodities to be \$56,577 million.

Total consumption will be met by total supply, and the way this table is made will intrigue you, if you have learned about concepts of Input-Output. The first column under Consumption is "Intermediate", which is the demand for "Hotels and lodging places" commodity from other industrial sectors as intermediate goods and services.

#### **[Examples of Intermediate goods and Final Consumption]**

Examples of such transaction includes Hotel's sales of hotel rooms to Online Travel Companies (OTCs) which buy those "intermediate goods" from hotels and immediately sell those as "final goods" to consumers (you and me). From hotels' point of view, though they have identical rooms, some are sold as final products to consumers (you and me, visiting Marriott.com, or Hyatt.com to buy rooms at Marriott or Hyatt hotels, for example) and some

supply.

In the table, you can see two large column groups of Supply and Consumption, and on the row (left), you can see exactly the same commodities items exactly the same order as in the previous table. Indeed, the first column under Domestic Production (producers' prices) is

> Whole-sale trade margins and transportation costs Retail margins

Hotels and lodging places 56,220 .............. 357 .............. .............. .............. 56,577 27,260 23,680 .............. .............. 5,637 56,577 Eating and drinking places 268,148 .............. .............. .............. .............. .............. 268,148 32,335 231,193 .............. 309 4,311 268,148 Passenger rail 1,226 .............. .............. .............. .............. .............. 1,226 310 829 .............. .............. 87 1,226 Passenger bus and other local transportation 13,158 .............. .............. .............. .............. .............. 13,158 2,612 10,455 .............. .............. 91 13,158 Taxicabs 6,614 .............. .............. .............. .............. .............. 6,614 3,641 2,586 .............. .............. 387 6,614 Domestic passenger air fares 48,466 .............. .............. .............. .............. .............. 48,466 21,971 21,308 .............. .............. 5,187 48,466 International air fares 22,605 9,808 .............. .............. .............. .............. 32,413 3,073 12,377 .............. 16,395 568 32,413 Passenger w ater 4,000 301 .............. .............. .............. .............. 4,301 ................ 4,125 .............. 176 ................ 4,301 Auto and truck rental 15,094 .............. .............. .............. .............. .............. 15,094 10,668 3,234 .............. .............. 1,192 15,094 Other vehicle rental 454 .............. .............. .............. .............. .............. 454 245 209 .............. .............. ................ 454 Arrangement of passenger transportation 13,030 .............. .............. .............. .............. .............. 13,030 9,004 2,814 .............. 1,107 105 13,030 Recreation and entertainment 39,935 .............. 3,708 .............. .............. .............. 43,643 770 42,057 .............. .............. 816 43,643 Participant sports 10,187 .............. .............. .............. .............. .............. 10,187 1,284 8,903 .............. .............. ................ 10,187 Movie, theater, ballet, and musical events 21,566 145 .............. .............. .............. .............. 21,711 8,194 13,313 .............. 43 161 21,711 Sports events 4,527 101 444 .............. .............. .............. 5,072 1,303 3,096 .............. 320 353 5,072 Petroleum retail margins 25,916 .............. .............. .............. .............. .............. .................. ................ ................ .............. .............. ................ .................. Other retail margins 499,927 .............. .............. .............. .............. .............. .................. ................ ................ .............. .............. ................ .................. Travel by U.S. residents abroad .................. 39,964 .............. .............. .............. .............. 39,964 10,361 29,603 .............. .............. ................ 39,964 Gasoline and oil 114,079 5,283 .............. 518 62,204 25,916 206,964 78,264 115,234 .............. 2,994 10,472 206,964

Parking, automotive repair, and highw ay tolls 114,982 .............. 181 .............. .............. .............. 115,163 37,134 75,560 .............. 17 2,452 115,163 Wholesale trade margins and transportation costs 671,972 .............. .............. .............. .............. .............. .................. ................ ................ .............. .............. ................ .................. All other commodities 7,995,362 438,542 121,167 –4,520 412,016 200,614 9,172,221 3,925,205 2,635,574 788,427 508,665 1,314,350 9,172,221 Total 10,822,647 631,637 127,076 5,430 671,972 525,843 11,575,930 4,588,742 4,208,718 790,991 602,609 1,384,870 11,575,930 Original Notes: \*1 - The total for domestic production is in purchasers' prices because it includes margins and transportation costs. \*2 - Total supply in purchasers' prices is equal to domestic production in producers' prices plus imports, government sales, w holesale trade margins and transportation costs are not show n explicitly in this column, because they are included in the purchasers' values for the gasoline and oil, personal consumption expenditure nondurable commodities other than gasoline and oil, and all other commodities. \*3 - Includes consumption and investment expenditures and excludes government sales. Government sales are included as part of

Source: Table 6, p15, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced w ith the Permission obtained by

Table 6. Supply and Consumption of Tourism and All Other Commodities, 1992 (Unit in

At around the middle of the columns, you find a column in the name of "Total supply", which show the row-wise sums of each commodity. If you look at the first row of "Hotels and lodging places" commodity, \$56,220 million equivalent of "Hotels and lodging places" commodity were supplied by the "Domestic production" (top, far left) of which details can be traced back in the previous table. "Hotels and lodging places" commodities are supplied by "Government sales" for \$357 million, making the total supply of "Hotels and lodging

Total consumption will be met by total supply, and the way this table is made will intrigue you, if you have learned about concepts of Input-Output. The first column under Consumption is "Intermediate", which is the demand for "Hotels and lodging places"

Examples of such transaction includes Hotel's sales of hotel rooms to Online Travel Companies (OTCs) which buy those "intermediate goods" from hotels and immediately sell those as "final goods" to consumers (you and me). From hotels' point of view, though they have identical rooms, some are sold as final products to consumers (you and me, visiting Marriott.com, or Hyatt.com to buy rooms at Marriott or Hyatt hotels, for example) and some

**5.1.7 Interpretation of total supply and total consumption of commodities** 

commodity from other industrial sectors as intermediate goods and services.

**[Examples of Intermediate goods and Final Consumption]** 

Total supply *\* 2* 

875,179 137,493 1,219 9,432 197,752 299,313 1,501,524 415,108 972,568 2,564 72,583 38,701 1,501,524

Intermediate

Supply Consumption

Personal consumption expenditures

Gross private domestic fixed investment

Exports of goods and services

Government expenditures excluding sales *\* 3* 

Total consumption

identical to the column which appeared in the far right end of the Production table.

Change in business inven-tories

Government sales

Domestic production (producers' prices) *\* 1* Imports

Personal consumption expenditures nondurable commodities other than gasoline and oil

Commodity

supply.

US\$ million)

places" commodities to be \$56,577 million.

the author

other rooms are sold as intermediate goods to OTCs, which in turn sell the same room to consumers (you and me, visiting orbitz.com or Travelocity.com to buy rooms at Marriott or Hyatt hotels).

"Hotels and lodging places" commodity to be used as intermediate goods and services for other industrial sectors production activities was \$27,260 million, which was larger than the "Personal consumption expenditures" for \$23,680 million. Consumption by governments and their employees was captured under the column "Government expenditures excluding sales" for \$5,637 which is about 10% of total consumption of "Hotels and lodging places" commodity. If you look across the different commodities, there are four other commodities of which consumption from other industrial sectors were larger than personal consumption expenditures.

When you look at the columns under the Consumption, what you see here are from left to right, Intermediate, Personal Consumption, Investment, Exports, and Government Expenditure. So it is AX, C, I, EX, G. You have Imports (IM) under the supply. With all those information, you can calculate the GDP of the Unites States in 1992 using the numbers at the bottom Total rows, if you remember that GDP = C + I + G + EX – IM.

#### **5.1.8 Tourism demand by type of visitor (table 7)**

This table appears to be a tough one for students to follow. Inclusion of three Methods in the same table adds its complexity on the appearance of the table. Basic structure of this table can be simply shown as follows.


Original notes: \*1 - The tourism commodity ratio is total tourism demand divided by total demand. See the section "Methodological Overview " for a discussion of the three methods. Table 7. Tourism Demand by Type of Visitor, 1992

#### **5.1.9 Tourism demand and non-tourism demand**

At the top left column of the table 7 , you have "Total demand" column. You see familiar names of commodities, identical from the top commodity "Hotels and lodging places" to the bottom "All other commodities" except margins items in the Supply and Consumption of Tourism and All Other Commodities table. Total demand can be disaggregated into Nontourism demand and Tourism demand, which will be further disaggregated into Business, Government expenditure excluding sales, resident household and Nonresidents.

Introduction to Tourism Satellite Accounts 131

Intermediate inputs are shown next to Industry output data in table 5 and Intermediate

Hotels and lodging places 84,243 32,449 51,794 0.8 67,603 26,039 41,563 Eating and drinking places 236,124 124,678 111,446 0.16 37,403 19,749 17,653 Railroads and related services 33,842 12,934 20,908 0.04 1,226 469 757

Value added

Intermediate consumption

Taxicabs 6,614 2,853 3,761 0.22 1,478 638 840 Air transportation 87,828 50,188 37,640 0.81 70,877 40,426 30,451 Water transportation 26,681 17,108 9,573 0.14 3,860 2,475 1,385 Automotive rental and leasing, w ithout drivers 21,410 10,669 10,741 0.54 11,626 5,793 5,832 Arrangement of passenger transportation 13,108 4,781 8,327 0.22 2,919 1,065 1,854

Membership sports and recreation clubs 11,920 5,026 6,894 0.31 3,686 1,554 2,132

Professional sports clubs and promoters 6,444 1,844 4,600 0.13 828 237 591 Gasoline service stations 31,157 9,307 21,850 0.07 2,199 657 1,542

Total tourism industries 1,270,477 529,045 741,432 .............. 230,844 110,384 120,460 Total all other industries 9,552,170 4,059,697 5,492,473 .............. ............ ........... .............. . Total 10,822,647 4,588,742 6,233,905 .............. ............ ........... .............. .

Source: Table 8, p17, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998.

Original Notes: \*1 - The industry tourism ratio is equal to tourism output divided by industry output. \*2 - The industry tourist output is derived from table 5 and table 7. The tourism commodity ratio (table 7) is multiplied by the tourism commodities produced by industries (table 5) and summed by industry. For example, the air industry produces \$48,449 million domestic passenger air fares of w hich 100 percent is tourism, it also produces \$22,605 million international air fares of w hich 99 percent is tourism. The total tourism output of the industry is \$70,877 million. Note - See the section "Methodological

Table 8. Shortened Version of Original Table 8 – Tourism GDP of Tourism Industries and

Numbers in Value added column in Table 8 does not appear to have a corresponding row in the bottom part in the original Table 5. For example, the first number in the column "51,794" is the value-added for Hotels and lodging places in Table 8, but we cannot find the same

If we remember how the table 5 was created, together with the basic knowledge of the I-O structure, we can find the data. Let's review how the first column (Hotels and lodging places

M ethod 1 M ethod 1 M ethod 1 M ethod 1

Tourism output

Tourism industry intermediate consumption Tourism industry value added

15,878 10,222 5,656 0.21 3,367 2,168 1,199

Tourism industry ratio *\* 1* 

35,800 13,788 22,012 0.18 6,465 2,490 3,975

23,646 13,252 10,394 0.17 3,932 2,204 1,729

560,108 185,152 374,956 0.02 13,376 4,422 8,954

consumption are shown next to Industry output data in table 8.

Industry output

Local and suburban transit and interurban highw ay passenger transportation, except

Industry

Miscellaneous amusement and recreation services (except membership sports and recreation clubs); racing including track operation; marinas; and libraries and museums, art galleries, and botanical and zoological

Motion picture theaters; dance studios, schools, and halls; theatrical producers (except motion pictures), bands, orchestras, and entertainers

Retail excluding eating and drinking places and

Overview " for a discussion of the three methods.

**5.1.13 Value added column** 

column, the first from left)

Other Industries, 1992

Bureau of Economic Analysis, Reproduced w ith the Permission obtained by the author

number in the original Table 5. So how can we obtain this number?

gasoline services stations

taxicabs

gardens

Let's look at examples. First row is the "Hotel and lodging places" commodities for which there was \$56,577 million of "Total demand". Hotel and lodging places" commodities are unique commodities in that demand for them consist of100% Tourism demand, and none from Nontourism demand. Again, we have to be reminded that tourism demand derive from visitors who can be either leisure-visitors (= tourists) or non-leisure visitors and that tourism demand includes, as you clearly see, demand from Business, Governments and Nonresidents who may come as leisure traveler or foreign Business or Governments workers. Total tourism demand for \$56,577 million were generated from Business for \$27,260 million (48.2%), Government Expenditure for \$5,637 million (10.0%), Resident Household for \$11,342 million (20.0%), and Nonresidents for \$12,338 million (21.8%). Since Total demand for Hotel and lodging places" commodities equal total tourism demand for Hotel and lodging places" commodities, the tourism commodity ration is 1.00.

Tourism Commodity Ratio = Total Tourism Demand / Total Demand.

Second row in Commodity is "Eating and drinking places" commodity. While the total demand for "Eating and drinking places" commodity is \$268,148 million, Total tourism demand is \$45,431 million based on Method 1 data. With these two numbers, we can calculate the tourism commodity ratio as \$45,431 / \$268,148 = 0.17 = 17%.

While "Eating and drinking places" commodity is consumed by Nontourism demand for \$222,717 million, we will decompose the total tourism demand into four subgroups. Business consumes for \$17,917 million equivalent of "Eating and drinking places" commodity, Government for \$3,696 million, Resident household for \$13,812 million and Nonresidents for \$10,006 million.

#### **5.1.10 Tourism GDP calculations (Table 8: originally Table 8)**

The table 8, which is shown as table 8 in the original publication, displays importance of tourism industries and other industries for the production of tourism output and tourismrelated value added. Each industry produces output and certain portion of the output are purchased by visitors. That portion purchased by visitors is shown as "tourism-industry ratio" in this table. This is a very important table for policy makers and government officials because this table will enable them to explain to taxpayers and stakeholders the significance of tourism as an industry to the national/regional economy with hard numbers.

First we will look at where all numbers in this table came from.

#### **5.1.11 Industry output column**

Numbers in Industry output column came from the "Industry Output" row, the 5th row from the bottom in the original Table 5. The numbers shown in row vector in Table 5 are transposed into column vector.

#### **5.1.12 Intermediate consumption column**

Numbers in Intermediate consumption column came from the "Intermediate inputs" row. So the numbers shown in row vector in Table 5 are transposed into column vector.

Let's look at examples. First row is the "Hotel and lodging places" commodities for which there was \$56,577 million of "Total demand". Hotel and lodging places" commodities are unique commodities in that demand for them consist of100% Tourism demand, and none from Nontourism demand. Again, we have to be reminded that tourism demand derive from visitors who can be either leisure-visitors (= tourists) or non-leisure visitors and that tourism demand includes, as you clearly see, demand from Business, Governments and Nonresidents who may come as leisure traveler or foreign Business or Governments workers. Total tourism demand for \$56,577 million were generated from Business for \$27,260 million (48.2%), Government Expenditure for \$5,637 million (10.0%), Resident Household for \$11,342 million (20.0%), and Nonresidents for \$12,338 million (21.8%). Since Total demand for Hotel and lodging places" commodities equal total tourism demand for

Second row in Commodity is "Eating and drinking places" commodity. While the total demand for "Eating and drinking places" commodity is \$268,148 million, Total tourism demand is \$45,431 million based on Method 1 data. With these two numbers, we can

While "Eating and drinking places" commodity is consumed by Nontourism demand for \$222,717 million, we will decompose the total tourism demand into four subgroups. Business consumes for \$17,917 million equivalent of "Eating and drinking places" commodity, Government for \$3,696 million, Resident household for \$13,812 million and

The table 8, which is shown as table 8 in the original publication, displays importance of tourism industries and other industries for the production of tourism output and tourismrelated value added. Each industry produces output and certain portion of the output are purchased by visitors. That portion purchased by visitors is shown as "tourism-industry ratio" in this table. This is a very important table for policy makers and government officials because this table will enable them to explain to taxpayers and stakeholders the significance

Numbers in Industry output column came from the "Industry Output" row, the 5th row from the bottom in the original Table 5. The numbers shown in row vector in Table 5 are

Numbers in Intermediate consumption column came from the "Intermediate inputs" row. So the numbers shown in row vector in Table 5 are transposed into column vector.

of tourism as an industry to the national/regional economy with hard numbers.

Hotel and lodging places" commodities, the tourism commodity ration is 1.00.

Tourism Commodity Ratio = Total Tourism Demand / Total Demand.

calculate the tourism commodity ratio as \$45,431 / \$268,148 = 0.17 = 17%.

**5.1.10 Tourism GDP calculations (Table 8: originally Table 8)** 

First we will look at where all numbers in this table came from.

Nonresidents for \$10,006 million.

**5.1.11 Industry output column** 

transposed into column vector.

**5.1.12 Intermediate consumption column** 

Intermediate inputs are shown next to Industry output data in table 5 and Intermediate consumption are shown next to Industry output data in table 8.


Source: Table 8, p17, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced w ith the Permission obtained by the author

Original Notes: \*1 - The industry tourism ratio is equal to tourism output divided by industry output. \*2 - The industry tourist output is derived from table 5 and table 7. The tourism commodity ratio (table 7) is multiplied by the tourism commodities produced by industries (table 5) and summed by industry. For example, the air industry produces \$48,449 million domestic passenger air fares of w hich 100 percent is tourism, it also produces \$22,605 million international air fares of w hich 99 percent is tourism. The total tourism output of the industry is \$70,877 million. Note - See the section "Methodological Overview " for a discussion of the three methods.

Table 8. Shortened Version of Original Table 8 – Tourism GDP of Tourism Industries and Other Industries, 1992

#### **5.1.13 Value added column**

Numbers in Value added column in Table 8 does not appear to have a corresponding row in the bottom part in the original Table 5. For example, the first number in the column "51,794" is the value-added for Hotels and lodging places in Table 8, but we cannot find the same number in the original Table 5. So how can we obtain this number?

If we remember how the table 5 was created, together with the basic knowledge of the I-O structure, we can find the data. Let's review how the first column (Hotels and lodging places column, the first from left)

Introduction to Tourism Satellite Accounts 133

 The amount of the second commodity produced and consumed was \$22,605 million as you can see at the intersection between "Air transportation" industry column and

 Then take those two numbers (\$48,449 million and \$22,605 million) and look at "Tourism commodity ratio" columns at the very right bottom end of Table 7. Identify the corresponding "Tourism commodity ratio" for the Domestic passenger air fares commodity, in this case 1.00, and one for the International air fares commodity, in

Total amount of commodity produced shall be multiplied by its tourism commodity

 Because there are two commodities that Air transportation industry produces, summation of those numbers will be the Air transportation industry's tourism output.

 There are three commodities that Eating and drinking places industry produce – Eating and drinking places, Petroleum retail margins, and Other retail margins as commodities, or "a service of providing you with a tasty meals, wines, beers and perhaps hot dogs, sodas, maps, sun-glasses, small gifts and fill your gasoline tank" to

 The amount of first commodity produced and consumed was \$220,685 million as you can see at the intersection between "Eating and drinking places" industry column and

 The amount of the second commodity produced and consumed was \$13 million as you can see at the intersection between "Eating and drinking places" industry column and

 The amount of the third commodity produced and consumed was \$579 million as you can see at the intersection between "Eating and drinking places" industry column and

 Then take those four numbers (\$220,685 million, \$13 million and \$579 million) and look at "Tourism commodity ratio" columns at the very right bottom end of Table 7. Identify the corresponding "Tourism commodity ratio" (we use only Method 1 for

 Each three of the total amount of commodity produced shall be multiplied by their respective tourism commodity ratio, in this case 0.17, 0.05 and 0.02. (0.17 can be

 Because there are three commodities that Eating and drinking places industry produce, summation of those numbers will be the Eating and drinking places industry's tourism

Thus, (\$48,449 million x 1.00) + (\$22,605 million x 0.992167) = \$70,877 million.

Since the exact tourism commodity ratios are not displayed but rounded ones are shown in the Table, we may encounter rounding errors with multiple commodities under one industry. In this case, the exact ratio can be traced back because one of the

ration, in this case 1.00 and .99 (to say exactly, it must be 0.992167..).

"International air fares" commodity row in Table 5.

this case 0.99 (to say exactly, it must be 0.992167..).

two tourism commodity ratios are 1.00.

Eating and drinking places (with three commodities)

"Eating and drinking places" commodity row in Table 5.

"Petroleum retail margins" commodity row in Table 5.

"Other retail margins" commodity row in Table 5.

Eating and Drinking places = 0.17 Gasoline and oil = 0.05 Other retail margins = 0.02

0.1694305 to match the number – rounding errors may exist)

aid your imagination.

display purposes).

Total Input = Intermediate Inputs + Value Added (= Compensation of Employees + Indirect Business Taxes + Other Value Added)

84,243 = 32,449 + (32,615 + 6,372 + 12,807)

If we sum up the value added portion 32,615 + 6,372 + 12,807, then we will get 51,794, which is the number we see in the top of value added column. Sum up the three numbers from bottom shown in each column.

Now, we are entering into the parts which can be challenging not only for hospitality and tourism students but also for other students with quantitative majors such as engineering or applied economics. In order to discuss tourism industry ratio, we have to understand how we calculate the tourism industry output.

#### **5.1.14 Tourism industry output**

We will estimate tourism industry output by taking the respective tourism commodities produced by industries (displayed in Table 5) to be multiplied by corresponding tourism commodity ratio (in Table 7). After that, results have to be summed up by industry. Let's take some examples to show the processes of calculations.

Taxicabs (with one commodity)


Air transportation (with two commodities)


Total Input = Intermediate Inputs + Value Added (= Compensation of Employees + Indirect

If we sum up the value added portion 32,615 + 6,372 + 12,807, then we will get 51,794, which is the number we see in the top of value added column. Sum up the three numbers from

Now, we are entering into the parts which can be challenging not only for hospitality and tourism students but also for other students with quantitative majors such as engineering or applied economics. In order to discuss tourism industry ratio, we have to understand how

We will estimate tourism industry output by taking the respective tourism commodities produced by industries (displayed in Table 5) to be multiplied by corresponding tourism commodity ratio (in Table 7). After that, results have to be summed up by industry. Let's

 There is only one commodity that Taxicabs industry produce – taxicabs as a commodity, or "a service of an efficient transportation by motor vehicle to move you and your belongings from one point to other point(s) with a dedicated driver chartered

 The amount of this commodity produced and consumed was \$6,614 million as you can see at the intersection between "Taxicabs" industry column and "Taxicab" commodity

Then take that number (\$6,614 million) and look at "Tourism commodity ratio"

Identify the corresponding "Tourism commodity ratio" for the Taxicab commodity, in

Total amount of commodity produced shall be multiplied by its tourism commodity

\$6,614 million x 0.2234653 = \$1,478 million. Because there is only one commodity that

 There are two commodities that Air transportation industry produces – Domestic passenger air fares and International air fares as commodities, or "a service of an efficient transportation by airplane to move you and your belongings from one point to other point(s: this can be domestic destination or in other nation) with a dedicated seat

 The amount of first commodity produced and consumed was \$48,449 million as you can see at the intersection between "Air transportation" industry column and

Taxicabs industry produces, this is the taxicab industry's tourism output.

Business Taxes + Other Value Added)

bottom shown in each column.

**5.1.14 Tourism industry output** 

Taxicabs (with one commodity)

row in Table 5.

this case 0.22.

ration, in this case 0.22.

Air transportation (with two commodities)

reserved for you" to aid your imagination.

"Domestic passenger air fares" commodity row in Table 5.

84,243 = 32,449 + (32,615 + 6,372 + 12,807)

we calculate the tourism industry output.

for you" to aid your imagination.

take some examples to show the processes of calculations.

columns at the very right bottom end of Table 7.


#### Eating and drinking places (with three commodities)




Introduction to Tourism Satellite Accounts 135

By continuing this calculation, you will have Tourism industry intermediate consumption

Another part of decomposed component is the Tourism industry value added. To calculate the Tourism Industry Intermediate Consumption, take the Value added (third column from left) to be multiplied by the corresponding Tourism industry ratio and the result will be

Value added x tourism industry ratio = Tourism industry value

Value added x tourism industry ratio = Tourism industry value

By continuing this calculation, you will have Tourism industry value added column

Based on technical parts of the table 8, you may wonder what to do with the complete table. If we look at the bottom rows of the table, you see "Total tourism industries", "Total all other industries" and "Total" rows. By looking at those rows, we will see how we can use

Tourism affiliated industry's total output is \$1,270,477 million, which is a very large number. Out of the total output, \$529,045 million (41%) is used as intermediate consumption, which means they are used by other industrial sectors to produce their final products. \$741,432 million (59%) is used to satisfy the final consumption. However, as you see "Retail excluding eating and drinking places and gasoline service stations" industry, there are lots of industry outputs which are used for non-tourism related consumptions. For example, even though "Retail excluding eating and drinking places and gasoline service stations" industry produced total output of \$560,108 million, only a very small fraction of \$13,376 million (0.02 = to be exactly, it must he 0.02388 = 2.388%) can be attributed to tourism output, or output to be consumed by either tourism industry intermediate

\$51,794 M x 0.80 (to say exactly, it must be 0.80247) = \$41,563 M

\$111,446 M x 0.16 (to say exactly, it must be 0.15840) = \$17,653 M

\$124,678 M x 0.16 (to say exactly, it must be 0.15840) = \$19,749 M

For the Eating and drinking places,

**5.1.17 Tourism industry value added** 

For example, for the Hotel and lodging places,

**5.1.18 Tourism industry's output and GDP** 

consumption or tourism industry value added.

**5.1.18.1 Total tourism industries row** 

Tourism industry value added.

For the Eating and drinking places,

column completed.

added

added

completed.

this table.

Intermediate consumption x tourism industry ratio = Tourism industry intermediate consumption

output. Thus, (\$220,685 million x 0.17) + (\$13 million x 0.05) + (\$579 million x 0.02) = \$37,403 million.

 Identify the corresponding "Tourism commodity ratio" (we use only Method 1 for display purposes). Hotels and lodging places = 1.00



#### **5.1.15 Tourism industry ratio**

As discussed, tourism-affiliated industrial sectors can produce tourism commodities, such as hotel's production of "a comfortable place to stay". We also learned in Table 7 that those tourism-affiliated industrial sectors production of tourism commodities are not always 100% (= 1.00) even though four commodities, namely "Hotel and lodging places", "Passenger rail", "Domestic passenger air fares", "Travel by U.S. resident abroad" are considered to be 100% (= 1.00) consumed by tourism demand. That is the "Tourism Commodity Ratio" which shows the size of tourism demand in the total demand.

Tourism industry ratio is to show the share of visitors' purchases of tourism-affiliated industrial sectors' output, which may include purchases by non-visitors. In other words, tourism output, to be purchased by visitors, is hidden within the total output. Therefore we need a satellite to analyse the component of the total output. What we try to do here is to extract the portion of output purchased by visitors, and that can be defined as tourism output. This has been the discussion on the left half of the Table 8.

#### **5.1.16 Tourism industry intermediate consumption**

The right side of the Table 8 starts from the discussion on Tourism output and subsequent decomposition of the tourism output into two components. Tourism output of the industry can be further divided into two components of Tourism industry intermediate consumption and tourism industry value added as we do so with the I-O table. To calculate the Tourism Industry Intermediate Consumption, take the Intermediate consumption (second column from left) to be multiplied by the corresponding Tourism industry ratio and the result will be Tourism industry intermediate consumption.

For example, for the Hotel and lodging places,

```
$32,449 M x 0.80 (to say exactly, it must be 0.80247) = $26,039 M 
Intermediate consumption x tourism industry ratio 
= Tourism industry intermediate consumption
```
Identify the corresponding "Tourism commodity ratio" (we use only Method 1 for

Each four of the total amount of commodity produced shall be multiplied by their

 Because there are four commodities that Hotels and lodging places industry produce, summation of those numbers will be the Hotel and lodging places industry's tourism output. Thus, (\$55,913 million x 1.00) + (\$16,613 million x 0.17) + (\$10,428 million x 0.33)

As discussed, tourism-affiliated industrial sectors can produce tourism commodities, such as hotel's production of "a comfortable place to stay". We also learned in Table 7 that those tourism-affiliated industrial sectors production of tourism commodities are not always 100% (= 1.00) even though four commodities, namely "Hotel and lodging places", "Passenger rail", "Domestic passenger air fares", "Travel by U.S. resident abroad" are considered to be 100% (= 1.00) consumed by tourism demand. That is the "Tourism Commodity Ratio"

Tourism industry ratio is to show the share of visitors' purchases of tourism-affiliated industrial sectors' output, which may include purchases by non-visitors. In other words, tourism output, to be purchased by visitors, is hidden within the total output. Therefore we need a satellite to analyse the component of the total output. What we try to do here is to extract the portion of output purchased by visitors, and that can be defined as tourism

The right side of the Table 8 starts from the discussion on Tourism output and subsequent decomposition of the tourism output into two components. Tourism output of the industry can be further divided into two components of Tourism industry intermediate consumption and tourism industry value added as we do so with the I-O table. To calculate the Tourism Industry Intermediate Consumption, take the Intermediate consumption (second column from left) to be multiplied by the corresponding Tourism industry ratio and the result will

\$32,449 M x 0.80 (to say exactly, it must be 0.80247) = \$26,039 M

respective tourism commodity ratio, in this case 1.00, 0.17, 0.33 and 0.99.

Hotels and lodging places = 1.00 Eating and Drinking places = 0.17 Recreation and entertainment = 0.33 Other retail margins = 0.02

which shows the size of tourism demand in the total demand.

output. This has been the discussion on the left half of the Table 8.

**5.1.16 Tourism industry intermediate consumption** 

be Tourism industry intermediate consumption. For example, for the Hotel and lodging places,

Intermediate consumption x tourism industry ratio = Tourism industry intermediate consumption

+ (\$531 million x 0.02) = \$67,603 million.

\$37,403 million.

display purposes).

**5.1.15 Tourism industry ratio** 

output. Thus, (\$220,685 million x 0.17) + (\$13 million x 0.05) + (\$579 million x 0.02) =

For the Eating and drinking places,

\$124,678 M x 0.16 (to say exactly, it must be 0.15840) = \$19,749 M Intermediate consumption x tourism industry ratio = Tourism industry intermediate consumption

By continuing this calculation, you will have Tourism industry intermediate consumption column completed.

#### **5.1.17 Tourism industry value added**

Another part of decomposed component is the Tourism industry value added. To calculate the Tourism Industry Intermediate Consumption, take the Value added (third column from left) to be multiplied by the corresponding Tourism industry ratio and the result will be Tourism industry value added.

For example, for the Hotel and lodging places,

\$51,794 M x 0.80 (to say exactly, it must be 0.80247) = \$41,563 M Value added x tourism industry ratio = Tourism industry value added

For the Eating and drinking places,


By continuing this calculation, you will have Tourism industry value added column completed.

#### **5.1.18 Tourism industry's output and GDP**

Based on technical parts of the table 8, you may wonder what to do with the complete table. If we look at the bottom rows of the table, you see "Total tourism industries", "Total all other industries" and "Total" rows. By looking at those rows, we will see how we can use this table.

#### **5.1.18.1 Total tourism industries row**

Tourism affiliated industry's total output is \$1,270,477 million, which is a very large number. Out of the total output, \$529,045 million (41%) is used as intermediate consumption, which means they are used by other industrial sectors to produce their final products. \$741,432 million (59%) is used to satisfy the final consumption. However, as you see "Retail excluding eating and drinking places and gasoline service stations" industry, there are lots of industry outputs which are used for non-tourism related consumptions. For example, even though "Retail excluding eating and drinking places and gasoline service stations" industry produced total output of \$560,108 million, only a very small fraction of \$13,376 million (0.02 = to be exactly, it must he 0.02388 = 2.388%) can be attributed to tourism output, or output to be consumed by either tourism industry intermediate consumption or tourism industry value added.

Introduction to Tourism Satellite Accounts 137

For the explanations purposes, table 5 is the shortened version. The table only shows data

Employment and compensation data are not the formal part of the I-O/SAM tables, while creation of table are manageable as long as you have both access to good labor-related data of your study region and basic knowledge of structural components of the I-O/SAM tables.

> Tourism industry ratio

Hotels and lodging places *\*2* 1,661 0.80 1,329 32,615 26,092 19,636 Eating and drinking places *\*3* 6,819 0.16 1,091 81,265 13,002 11,917 Railroads and related services 243 0.04 10 14,727 589 60,605

Total employment (thousands of employees)

transportation, except taxicabs *\*4* <sup>416</sup> 0.21 87 13,635 2,863 32,776 Taxicabs *\*5* 32 0.22 7 1,088 239 34,000 Air transportation 625 0.81 506 29,740 24,089 47,584 Water transportation 100 0.14 14 4,650 651 46,500 Automotive rental and leasing, w ithout drivers 178 0.54 96 3,733 2,016 20,972 Arrangement of passenger transportation *\*6* 191 0.22 43 5,037 1,122 26,372

Membership sports and recreation clubs 297 0.31 92 5,348 1,658 18,007

Professional sports clubs and promoters 46 0.13 6 3,716 483 80,783 Gasoline service stations 632 0.07 44 10,038 703 15,883 Retail excluding eating and drinking places and gasoline services stations 12,572 0.02 262 228,000 4,750 18,136 Total tourism industries ... ........ 3,749 ............. 81,260 21,393 Total all other industries .... ........ 117,998 ............. 3,645,042 30,891 Total Share (percent) .... ........ 3.2 ............. 2.2 .....

Original notes: \*1. Average compensation per tourism employee w as calculated as the arithmetic mean of the average compensation per tourism employee

Source: Table 9, p17, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998.

\*2. Self-employment for SIC 70 (Hotels and lodging) for 1992 is estimated at 56,000. (Source: Derived from Bureau of Labor Statistics, Current Population

\*3. Self employment for SIC 58 (Eating and drinking places) for 1992 is estimated at 490,000. (Source: Derived from Bureau of Labor Statistics, Current

\*6. Self-employment for SIC 47 for 1992 is estimated at 27,000, all of w hich is assumed to occur in SIC 4720 (Arrangement of Passenger Transportation). \*7.—Employment and Payrolls of State and Local Governments by Type of Government and Function: October 1992, 1992 Census of Governments, Compendium of Public Employment). Compensation for the State and local government ''transit'' employees is estimated at \$9,804,000,000, w hich is added to

NOTE.—See the section ''Methodological Overview '' for a discussion of the three methods. Sources: Bureau of Labor Statistics, U. S. Department of Labor, Employment and Wage Annual Averages, 1992;Bureau of the Census, U. S. Department of Commerce, 1992 Census of Governments, Compendium of Public

Table 9. Tourism Employment and Compensation of Employees, 1992 (shortened version for

\*4. Employment for this category includes 206,000 State and local government ''transit'' employees. (Source: Table estimate for compensation. \*5. Self employment for SIC 41 for 1992 is estimated at 54,000, all of w hich is assumed to occur in SIC 4120 (Taxicabs). (Source: Derived from Bureau of

Employment; and Bureau of Labor Statistics, U. S. Department of Labor, Current Population Survey, 1992.

Method 1 Method 1 Method 1

Compensation (millions of dollars)

Tourism compensation (millions of dollars)

Average compensation per tourism employee (dollars) *\* 1* 

Tourism employment (thousands of employees)

633 0.18 114 10,973 1,975 17,335

282 0.17 48 6,042 1,027 21,426

**Tourism Employment and Compensation (table 9)** 

based on method 1 only on behalf of clarity.

Local and suburban transit and interurban highw ay passenger

Industry

Miscellaneous amusement and recreation services (except membership sports and recreation clubs); racing including track operation; marinas; and libraries and museums, art galleries, and botanical and zoological gardens

Motion picture theaters; dance studios, schools, and halls; theatrical producers (except motion pictures), bands, orchestras, and entertainers

Bureau of Economic Analysis, Reproduced w ith the Permission obtained by the author

for methods 1, 2 and 3.

Population Survey, 1992.) )

Labor Statistics, Current Population Survey, 1992.)

the national income and product account

Survey, 1992.)

display)

Tourism output (\$230,844 million) can be decomposed into tourism industry intermediate consumption for \$110,384 million and Tourism industry value added for \$120,460 million.

#### **5.1.18.2 Total all other industries row and total row**

Those last two rows appear to be just bunch of large numbers, but it is very important to have those numbers so that we can put tourism as an industry in broader perspective in the society.

Total for \$10,822,647 million (\$10.8 trillion) is the total output of the U.S. economy in the study year of 1992. With the knowledge of total size of economy, tourism Output for \$230,844 million (method 1) can be put in perspective.

	- \$230,844 M (method 1) / \$10,822,647 M = 2.13%
	- \$238,578 M (method 1) / \$10,822,647 M = 2.20%
	- \$259,517 M (method 1) / \$10,822,647 M = 2.39%

Next, let's look at the size of Value Added, which is basically the GDP, namely total market value of goods and services produced in the nation in one year. Total U.S. GDP was \$6,233, 905 million in the study year of 1992. With the knowledge of total size of economy, tourism value added for \$120,460 million (method 1) can be put in perspective.

	- \$120,460 M (method 1) / \$6,233,905 M = 1.93%
	- \$124,528 M (method 1) / \$6,233,905 M = 2.00%
	- \$135,720 M (method 1) / \$6,233,905 M = 2.17%

With the size and significance of economic power of tourism as an industry, you can ask for legislative support for the industry, budget allocations, local community support more effectively than just a mere emotional appeals of tourism without numbers. But there is one more important set of data that you want to prepare to make your argument even more convincing. That is to be explained in the next table.

#### **5.1.19 Tourism employment and compensation of employees**

We have to understand why these employment-related data are highly important and influential to many stakeholders in the society. In a democratic society, or most of the nation where the national/regional leaders take responsibility for their leadership, any industrial policy has to be explained to the taxpayers to seek for their support, approval of budget, allocation of funding or positive benefits of certain policies to put those policies in perspective. This is because those governments are dependent on tax revenues which are generated from taxpayers/voters/residents. People want to know how their tax revenues are allocated and what the returns on those allocations of funds are. One of the major weaknesses of tourism as an industry has been the lack of hard numbers as a comparable industry in the national/regional economy. Thanks to TSA, we are trying to overcome the weaknesses and present tourism as an industry.

The last table in TSA presentations is a very important table for the purpose of proving validity of tourism as an industry by showing how many jobs are attributable to tourism as an industry and how much are the average annual salaries workers receive in different industrial sectors which produce tourism commodities.

Tourism output (\$230,844 million) can be decomposed into tourism industry intermediate consumption for \$110,384 million and Tourism industry value added for \$120,460 million.

Those last two rows appear to be just bunch of large numbers, but it is very important to have those numbers so that we can put tourism as an industry in broader perspective in the society. Total for \$10,822,647 million (\$10.8 trillion) is the total output of the U.S. economy in the study year of 1992. With the knowledge of total size of economy, tourism Output for

Next, let's look at the size of Value Added, which is basically the GDP, namely total market value of goods and services produced in the nation in one year. Total U.S. GDP was \$6,233, 905 million in the study year of 1992. With the knowledge of total size of economy, tourism

With the size and significance of economic power of tourism as an industry, you can ask for legislative support for the industry, budget allocations, local community support more effectively than just a mere emotional appeals of tourism without numbers. But there is one more important set of data that you want to prepare to make your argument even more

We have to understand why these employment-related data are highly important and influential to many stakeholders in the society. In a democratic society, or most of the nation where the national/regional leaders take responsibility for their leadership, any industrial policy has to be explained to the taxpayers to seek for their support, approval of budget, allocation of funding or positive benefits of certain policies to put those policies in perspective. This is because those governments are dependent on tax revenues which are generated from taxpayers/voters/residents. People want to know how their tax revenues are allocated and what the returns on those allocations of funds are. One of the major weaknesses of tourism as an industry has been the lack of hard numbers as a comparable industry in the national/regional economy. Thanks to TSA, we are trying to overcome the

The last table in TSA presentations is a very important table for the purpose of proving validity of tourism as an industry by showing how many jobs are attributable to tourism as an industry and how much are the average annual salaries workers receive in different

**5.1.18.2 Total all other industries row and total row**

\$230,844 million (method 1) can be put in perspective.

 Relative Size of Tourism Output to the Total U.S. Output \$230,844 M (method 1) / \$10,822,647 M = 2.13% \$238,578 M (method 1) / \$10,822,647 M = 2.20% \$259,517 M (method 1) / \$10,822,647 M = 2.39%

 \$120,460 M (method 1) / \$6,233,905 M = 1.93% \$124,528 M (method 1) / \$6,233,905 M = 2.00% \$135,720 M (method 1) / \$6,233,905 M = 2.17%

convincing. That is to be explained in the next table.

weaknesses and present tourism as an industry.

industrial sectors which produce tourism commodities.

**5.1.19 Tourism employment and compensation of employees** 

value added for \$120,460 million (method 1) can be put in perspective. Relative Size of Tourism GDP Contribution to the Total U.S. GDP

#### **Tourism Employment and Compensation (table 9)**

For the explanations purposes, table 5 is the shortened version. The table only shows data based on method 1 only on behalf of clarity.

Employment and compensation data are not the formal part of the I-O/SAM tables, while creation of table are manageable as long as you have both access to good labor-related data of your study region and basic knowledge of structural components of the I-O/SAM tables.


Source: Table 9, p17, "U.S. Travel and Tourism Satellite Accounts for 1992", Sumiye Okubo and Mark A. Planting, Survey of Current Business July 1998. Bureau of Economic Analysis, Reproduced w ith the Permission obtained by the author

Original notes: \*1. Average compensation per tourism employee w as calculated as the arithmetic mean of the average compensation per tourism employee for methods 1, 2 and 3.

\*2. Self-employment for SIC 70 (Hotels and lodging) for 1992 is estimated at 56,000. (Source: Derived from Bureau of Labor Statistics, Current Population Survey, 1992.)

\*3. Self employment for SIC 58 (Eating and drinking places) for 1992 is estimated at 490,000. (Source: Derived from Bureau of Labor Statistics, Current Population Survey, 1992.) )

\*4. Employment for this category includes 206,000 State and local government ''transit'' employees. (Source: Table estimate for compensation.

\*5. Self employment for SIC 41 for 1992 is estimated at 54,000, all of w hich is assumed to occur in SIC 4120 (Taxicabs). (Source: Derived from Bureau of Labor Statistics, Current Population Survey, 1992.)

\*6. Self-employment for SIC 47 for 1992 is estimated at 27,000, all of w hich is assumed to occur in SIC 4720 (Arrangement of Passenger Transportation).

\*7.—Employment and Payrolls of State and Local Governments by Type of Government and Function: October 1992, 1992 Census of Governments, Compendium of Public Employment). Compensation for the State and local government ''transit'' employees is estimated at \$9,804,000,000, w hich is added to the national income and product account

NOTE.—See the section ''Methodological Overview '' for a discussion of the three methods. Sources: Bureau of Labor Statistics, U. S. Department of Labor, Employment and Wage Annual Averages, 1992;Bureau of the Census, U. S. Department of Commerce, 1992 Census of Governments, Compendium of Public Employment; and Bureau of Labor Statistics, U. S. Department of Labor, Current Population Survey, 1992.

Table 9. Tourism Employment and Compensation of Employees, 1992 (shortened version for display)

Introduction to Tourism Satellite Accounts 139

This calculation highlights the danger of overestimation of employment unless you have

By continuing this calculation for all the other industrial sectors, you will have Tourism

This is the column that you will have difficulty in finding the source unless you have good basic knowledge on the structure and components of the I-O/SAM tables. Aggregate amounts of annual compensation per industrial sector are displayed in the I-O/SAM transaction table that is where you obtain these data. Recall that those figures include not only the direct wages and salaries but also the related fringe benefits. Again these figures are showing all the compensation for each sector and we have to repeat what we did with

Now we know that tourism industry consists of many tourism-affiliated industrial sectors which cater to visitors in varying degrees. Counting all the compensations paid to employees working in all industrial sectors serving tourism demand will lead to overestimation of compensations paid for those engaged in the tourism industry. Thus we have to extract only the compensation of those whose employments are attributed to tourism demand. This is how the tourism industry ratios are required to filter out the Tourism compensation out of Compensation in tourism-related industrial sectors. To calculate the Tourism compensation, take the (total) Compensation (the column approximately located in the middle) to be multiplied by the corresponding Tourism industry ratio (the second column from left) and the result will be Tourism compensation to

\$32,615 million x 0.80 = \$26,092 million (Total) Compensation x tourism industry ratio = Tourism Compensation

\$81,265 million x 0.16 = \$13,002 million (Total) Compensation x tourism industry ratio = Tourism Compensation

This calculation for Eating and drinking places highlights the danger of overestimation of employment unless you have solid tourism industry ratio to filter out the non-tourism

By continuing this calculation for all the other industrial sectors, you will have Tourism

Having calculated number of employees and total amount of annual compensation paid to them, we can calculate one more interesting thing fairly easily by dividing Tourism compensation (millions of dollars) by tourism employment (thousands of employees).

solid tourism industry ratio to filter out the non-tourism demands.

the calculations to tourism employment by utilizing Tourism industry ratio.

**5.1.24 Tourism compensation (Unit: Millions of dollars)** 

be shown at second column from right.

For the Eating and drinking places,

employment column completed.

Average compensation per tourism employee (unit: dollars)

demands.

For example, for the Hotel and lodging places,

employment column completed.

**5.1.23 Compensation (Unit: Millions of dollars)** 

As the base data for TSA are derived from those of the I-O, TSA data carries over some, if not all, of the same characteristic of the data in the I-O table.


Now we look into components of the Table 9.

#### **5.1.20 Total employment (Unit: Thousands of employees)**

These are the data which you obtain from public offices which compiles labor-related statistics. In the U.S., it is the Bureau of Labor Statistics which estimates average monthly employment by industry at very detailed (four-digit SIC (Standard Industrial Code) level: currently SIC was changed to NAICS (North American Industrial Classification System)) level, and Bureau of Economic Analysis also makes estimates at detailed (two-digit SIC level: currently SIC was changed to NAICS) level. Total employments are basically quoting relevant data from appropriate labor statistics.

#### **5.1.21 Tourism industry ratio**

These are already calculated in the Table 8, so we simply copy the data into the same column formats. You may note that this ratio remains highly important in generating several TSA tables, which depends on the tourism industry ratios.

#### **5.1.22 Tourism employment (Unit: Thousands of employees)**

Now we know that tourism industry consists of many tourism-affiliated industrial sectors which cater to visitors in varying degrees. Counting all the employees working in those industrial sectors serving tourism demand will lead to overestimation of numbers of employment in the tourism industry. Thus we have to extract only the numbers of those whose employments are attributed to tourism demand. This is how the tourism industry ratios are utilized to filter out the tourism employment out of total employment in tourismrelated industrial sectors. To calculate the Tourism employment, take the Total employent (first column from left) to be multiplied by the corresponding Tourism industry ratio and the result will be Tourism employment to be shown at third column from left.

For example, for the Hotel and lodging places,


Total employment x tourism industry ratio = Tourism Employment

As the base data for TSA are derived from those of the I-O, TSA data carries over some, if

Employment does not distinguish a full and a part time employee. Either would be

 Compensation of employees includes not only the direct wages and salaries but also supplementary welfares such as social security (national retirement funding in the

These are the data which you obtain from public offices which compiles labor-related statistics. In the U.S., it is the Bureau of Labor Statistics which estimates average monthly employment by industry at very detailed (four-digit SIC (Standard Industrial Code) level: currently SIC was changed to NAICS (North American Industrial Classification System)) level, and Bureau of Economic Analysis also makes estimates at detailed (two-digit SIC level: currently SIC was changed to NAICS) level. Total employments are basically quoting

These are already calculated in the Table 8, so we simply copy the data into the same column formats. You may note that this ratio remains highly important in generating

Now we know that tourism industry consists of many tourism-affiliated industrial sectors which cater to visitors in varying degrees. Counting all the employees working in those industrial sectors serving tourism demand will lead to overestimation of numbers of employment in the tourism industry. Thus we have to extract only the numbers of those whose employments are attributed to tourism demand. This is how the tourism industry ratios are utilized to filter out the tourism employment out of total employment in tourismrelated industrial sectors. To calculate the Tourism employment, take the Total employent (first column from left) to be multiplied by the corresponding Tourism industry ratio and

not all, of the same characteristic of the data in the I-O table.

**5.1.20 Total employment (Unit: Thousands of employees)** 

several TSA tables, which depends on the tourism industry ratios.

**5.1.22 Tourism employment (Unit: Thousands of employees)** 

the result will be Tourism employment to be shown at third column from left.

Total employment x tourism industry ratio = Tourism Employment

Total employment x tourism industry ratio = Tourism Employment

U.S.), fringe benefits, employer contribution to retirement fund.

counted as one employee.

All data are shown in annual basis

Now we look into components of the Table 9.

relevant data from appropriate labor statistics.

For example, for the Hotel and lodging places,

For the Eating and drinking places,

1,661 (thousands) x 0.80 = 1,329 (thousands)

6,819 (thousands) x 0.16 = 1,091 (thousands)

**5.1.21 Tourism industry ratio** 

This calculation highlights the danger of overestimation of employment unless you have solid tourism industry ratio to filter out the non-tourism demands.

By continuing this calculation for all the other industrial sectors, you will have Tourism employment column completed.

#### **5.1.23 Compensation (Unit: Millions of dollars)**

This is the column that you will have difficulty in finding the source unless you have good basic knowledge on the structure and components of the I-O/SAM tables. Aggregate amounts of annual compensation per industrial sector are displayed in the I-O/SAM transaction table that is where you obtain these data. Recall that those figures include not only the direct wages and salaries but also the related fringe benefits. Again these figures are showing all the compensation for each sector and we have to repeat what we did with the calculations to tourism employment by utilizing Tourism industry ratio.

#### **5.1.24 Tourism compensation (Unit: Millions of dollars)**

Now we know that tourism industry consists of many tourism-affiliated industrial sectors which cater to visitors in varying degrees. Counting all the compensations paid to employees working in all industrial sectors serving tourism demand will lead to overestimation of compensations paid for those engaged in the tourism industry. Thus we have to extract only the compensation of those whose employments are attributed to tourism demand. This is how the tourism industry ratios are required to filter out the Tourism compensation out of Compensation in tourism-related industrial sectors. To calculate the Tourism compensation, take the (total) Compensation (the column approximately located in the middle) to be multiplied by the corresponding Tourism industry ratio (the second column from left) and the result will be Tourism compensation to be shown at second column from right.

For example, for the Hotel and lodging places,

\$32,615 million x 0.80 = \$26,092 million (Total) Compensation x tourism industry ratio = Tourism Compensation

For the Eating and drinking places,

\$81,265 million x 0.16 = \$13,002 million (Total) Compensation x tourism industry ratio = Tourism Compensation

This calculation for Eating and drinking places highlights the danger of overestimation of employment unless you have solid tourism industry ratio to filter out the non-tourism demands.

By continuing this calculation for all the other industrial sectors, you will have Tourism employment column completed.

Average compensation per tourism employee (unit: dollars)

Having calculated number of employees and total amount of annual compensation paid to them, we can calculate one more interesting thing fairly easily by dividing Tourism compensation (millions of dollars) by tourism employment (thousands of employees).

Introduction to Tourism Satellite Accounts 141

Because some regional governments are interested in quantifying the size of tourism as an industry for the purpose of receiving preferential funding allocations from the central government, the interests in regional TSA are expected to grow in the world. In the latest international conference (2nd International Conference on the Measurement and Economic Analysis of Regional Tourism, Bilbao, Spain 2011) multiple papers on the regional measurement of tourism were presented by researchers from including but not limited to

TSA, as I explained, is a globally accepted accounting method to measure the tourism as an industry. Therefore, TSA cannot be "simulated" to be made as it is not a modelling technique. (Once the TSA is created in accordance with the global rules, it can be simulated in the same manner as Input-Output and its family model can). Since the TSA is based on the Input-Out framework, on which the System of National Accounts is also based, it is a deterministic accounting framework, which do not have stochastic component. Because the majority of the quantitative research studies in the current refereed journal in the tourism and hospitality fields are indeed scientific with inferential and stochastic components of data analysis, it is more challenging for researchers in TSA field to publish academic papers. Thus there appears to be a structural disconnect between academic researchers in tourism and the economists in the governmental tourism/economics offices, leaving many tourism

With proper introduction to the founding structure of Input-Output, it is hoped that many more students will be interested in studying tourism as a serious and growing industry of

Bureau of Economic Analysis. "Us International Travel Receipts and Payment by Countries

Hara, Tadayuki. Quantitative Tourism Industry Analysis: Elsevier, London, ISBN 978-0-

Okubo, Sumiye, and Mark A. Planting. "U.S. Travel and Tourism Satellite Accounts for

Organisation for Economic Co-operation and Development (OECD). "Tourism Satellite

Organisation for Economic Co-operation and Development. Measuring the Role of Tourism

United Nations (U.N.). "Economic Statistics: National Accounts." edited by Economic and

United Nations (U.N.). "Tourism Satellite Account: Recommended Methodological

1992." Survey of Current Business 78, no. 7 (1998): 8.

Experts, edited by World Tourism Organization. Paris, 1998.

in Oecd Economies. Edited by OECD. Paris: OECD, 2000.

Social Council. New York: United Nations, 1999.

1999." edited by Bureau of Economic Analysis. Washington D. C.: U.S. Department

Accounts: A Conceptual Framework." In OECD meeting of National Accounts

Framework." New York: Commission of the European Communities, Organisation for Economic Co-operation and Development, World Tourism Organisation, 2001.

Spain, Ireland, Israel, Japan, Italy and USA.

**6.1 Final comments on TSA** 

the 21st century.

**7. References** 

of Commerce, 2000.

7506-8499-6, 2008

http://www.inroutenetwork.org/conference/2011/

and hospitality students stranded on one side of the valley.

For example, for the Hotel and lodging places,



By continuing this calculation for all the other industrial sectors, you will have Average compensation per tourism employee column completed.

#### **5.2 TSA overview**

Now, the overall components of the TSA by separate tables have been reviewed. With the minimum knowledge, you should be able to read through the existing TSA studies made by different governments in the world. While there may be some differences in details, thanks to the UNWTO's efforts to disseminate common guidelines, most of the structures of the TSA reports should look familiar to your eyes. Besides updated versions of US TTRA made by the same office in Bureau of Economic Analysis, there are several accessible TSA reports made by Canada, (http://unstats.un.org/unsd/EconStatKB/Attachment230.aspx ), and New Zealand (http://stats.govt.nz/browse\_for\_stats/industry\_sectors/Tourism/tourismsatellite-account-info-releases.aspx ), to name a couple out of 60 nations.

#### **6. The latest development on TSA**

Since I wrote the similar but technically more detailed textbook on I-O/SAM and TSA (Hara 2008), there have been interesting developments in the area of TSA studies. With the leadership from UNWTO, application of TSA at sub-national level, or regional level has been advocated. Each region in a nation has different economic structures and therefore different importance of tourism as an industry. While the regional governments are eager to develop regional TSA, it will require intensive prime data collection on the part of regional governments. Both the existence of regional I-O data (not just a prorated miniature version of the national data, but I-O derived from actual regional transactions recorded) and availability of highly trained staff to deal with I-O and tourism specific TSA are the prerequisites for regional TSA, creating a high hurdle to develop ones. There are, however, examples of emerging Regional TSAs in some nations in the world.

\$26,092 million ÷ 1,329, 000 = \$19,636

\$13,002 million ÷ 1,091, 000 = \$11,917

\$483 million ÷ 6,000 = \$80,783

The data is based on data in 1992, so it may look outdated to your eyes if you try to put them in perspective with current data, but for example, there were higher paying

By continuing this calculation for all the other industrial sectors, you will have Average

Now, the overall components of the TSA by separate tables have been reviewed. With the minimum knowledge, you should be able to read through the existing TSA studies made by different governments in the world. While there may be some differences in details, thanks to the UNWTO's efforts to disseminate common guidelines, most of the structures of the TSA reports should look familiar to your eyes. Besides updated versions of US TTRA made by the same office in Bureau of Economic Analysis, there are several accessible TSA reports made by Canada, (http://unstats.un.org/unsd/EconStatKB/Attachment230.aspx ), and New Zealand (http://stats.govt.nz/browse\_for\_stats/industry\_sectors/Tourism/tourism-

Since I wrote the similar but technically more detailed textbook on I-O/SAM and TSA (Hara 2008), there have been interesting developments in the area of TSA studies. With the leadership from UNWTO, application of TSA at sub-national level, or regional level has been advocated. Each region in a nation has different economic structures and therefore different importance of tourism as an industry. While the regional governments are eager to develop regional TSA, it will require intensive prime data collection on the part of regional governments. Both the existence of regional I-O data (not just a prorated miniature version of the national data, but I-O derived from actual regional transactions recorded) and availability of highly trained staff to deal with I-O and tourism specific TSA are the prerequisites for regional TSA, creating a high hurdle to develop ones. There are, however,

Tourism Compensation ÷ tourism employment = Tourism Compensation (Annual total amount) (Annual average) (Annual amount per employee)

Tourism Compensation ÷ tourism employment = Tourism Compensation (Annual total amount) (Annual average) (Annual amount per employee)

Tourism Compensation ÷ tourism employment = Tourism Compensation (Annual total amount) (Annual average) (Annual amount per employee)

satellite-account-info-releases.aspx ), to name a couple out of 60 nations.

examples of emerging Regional TSAs in some nations in the world.

occupations such as professional sports clubs and promoters.

compensation per tourism employee column completed.

For example, for the Hotel and lodging places,

(to say exactly, it may be 1,328,783)

For the Eating and drinking places,

(to say exactly, it may be 1,091,046)

(to say exactly, it may be 5,978)

**6. The latest development on TSA** 

**5.2 TSA overview** 

Because some regional governments are interested in quantifying the size of tourism as an industry for the purpose of receiving preferential funding allocations from the central government, the interests in regional TSA are expected to grow in the world. In the latest international conference (2nd International Conference on the Measurement and Economic Analysis of Regional Tourism, Bilbao, Spain 2011) multiple papers on the regional measurement of tourism were presented by researchers from including but not limited to Spain, Ireland, Israel, Japan, Italy and USA.

http://www.inroutenetwork.org/conference/2011/

#### **6.1 Final comments on TSA**

TSA, as I explained, is a globally accepted accounting method to measure the tourism as an industry. Therefore, TSA cannot be "simulated" to be made as it is not a modelling technique. (Once the TSA is created in accordance with the global rules, it can be simulated in the same manner as Input-Output and its family model can). Since the TSA is based on the Input-Out framework, on which the System of National Accounts is also based, it is a deterministic accounting framework, which do not have stochastic component. Because the majority of the quantitative research studies in the current refereed journal in the tourism and hospitality fields are indeed scientific with inferential and stochastic components of data analysis, it is more challenging for researchers in TSA field to publish academic papers. Thus there appears to be a structural disconnect between academic researchers in tourism and the economists in the governmental tourism/economics offices, leaving many tourism and hospitality students stranded on one side of the valley.

With proper introduction to the founding structure of Input-Output, it is hoped that many more students will be interested in studying tourism as a serious and growing industry of the 21st century.

#### **7. References**


**7** 

*Malaysia* 

**What Women Want: Hotel Characteristics** 

The tourism industry depends by and large on travellers and tourists. While it has become a practical precept that most travel decisions are made by males, women travellers of late, have become a very important consumer segment within the tourism industry. As recent as 2005, women travellers accounted for approximately 43% of the business travellers worldwide and are seen as a growing lucrative demographic by industry experts. Marketing experts opine that 85 % of all buying decisions are made by the fairer sex. In addition to this, the majority of corporate purchasing agents and managers are women. This translates to the fact that women make approximately 70% of travel decisions for the family as well as for other people, for instance employers or employees. With the inherent distinctiveness of the female psyche, there is bound to be a rather specific preference or inclination on accommodation characteristics that these women travellers would look for. Women travellers are perceived to be especially interested in security, cleanliness, communication facilities, style and ambience of space, smooth check-in/check-out procedures as well as in

Waters (1988) concluded from a study in the United States, that even though men still dominate the business travel market, women have been progressively taking as many and sometimes even more holidays than men in the leisure market. However, women travellers have different expectations for travel, different attitudes toward travel and play active roles in decision making compared to men (Baraban, 1986; DeLuca, 1986; Hawes, 1988). The assumption that tourism marketing is consumed identically by all tourists regardless of gender is critically flawed (Wearing & Wearing, 1996) as preferences for travel experiences differ by gender. In terms of lodging preferences, women focus mostly on criteria regarding security, personal services and low prices during hotel selection while men consider business services and facilities as being more important than those criteria selected by women (McCleary *et al.*, 1994). A latter research by Sammons *et al.*, (1999) investigated the differences in female business travellers' selection of lodging accommodations. In the survey, over 90% of the respondents rated these following characteristics as being important to very important: cleanliness of hotel, comfortable mattress and pillows, individual room smoke detector, dead bolt door locks, chain locks/latches and parking area lighting. Ten different factor-dimensions were found through factor analysis and denominated as: 'Comfort', 'Parking', 'Security', 'Services', 'Complimentary', 'Price-sensitive', 'Safety',

**1. Introduction** 

comfortable access and/or transfers.

**Preferences of Women Travellers** 

Azizan Marzuki, Tan Lay Chin and Arman Abdul Razak *School of Housing, Building & Planning, Universiti Sains Malaysia* 

