Estimation of multipliers for the activity of hotels and restaurants

Abstract

The purpose of this paper is to model and estimate the multipliers for Hotels and Restaurants, the most characteristic of the industries that make up the tourism business. This multiplier can be used for estimating the economic impact of tourism demand. Likewise, a tool for planners and policy makers is provided. The data source is the set of InputeOutput tables gathered by the OECD, which, in its last edition, has collected a sufficiently representative number of countries with an equally suitable disaggregation level. Two models are elaborated, for the estimation of the Rasmussen backwards multiplier and of the imports multiplier, respectively. Some explanatory variables previously used in the literature are confirmed, while others are proposed as alternative ones.