The document discusses the Tourism Satellite Account (TSA), which is a framework endorsed by the UN to measure the economic contribution and impact of tourism. The TSA provides standardized measures of tourism's contribution to GDP, employment, investment, tax revenues, consumption, and balance of payments. It also measures indirect and induced economic effects beyond direct visitor spending. Developing a TSA requires cooperation between national statistical offices, tourism administrations, central banks, and industry associations to collect and organize relevant statistical data according to international guidelines.

1. Tourism Satellite Account
Louay Al-Naddaf
Kuwait, 26-Sep-2013

2. If you want to Manage it, You
need to measure it.
If you want to measure it, you
need to describe it.

3. Travel Industry

4. Tourism Industry

5. Direct spending by visitors
is only the tip of the
iceberg
The indirect
impact of tourism
is much larger
Relatively easy to
measure: visitor
numbers, expenditure
Hard to measure:
subsequent spend by
suppliers, induced
effects, investment etc
Huge Economic Impact

6. Tourism and development
planning
Tourism development , because of its economic
, socio – cultural and environmental impacts
, requires considerable planning if it is to be
successful and sustainable .
Private sector and public sector should co –
operate and co – ordinate in tourism
development .
The emphasis of tourism development planning
has moved away from the rigid grand design
master plan in favor of more flexible and
reactive development plans .

7. Indirect Impact
Indirect effects: generated from economic activity of subsequent
expenditure (e.g.: hotels purchase supplies and use local services)
Induced effects: arising from spending of income occurring to
local residents from tourism wages and profits
Investment activity: arising from capital investment in new
facilities for visitors
Government: public sector funding
Tourism Multipliers used to calculate indirect impacts
Bermuda Tourism Multipliers reached 3.6 which is the highest in the
world

8. Non-Quantitative Methods to Gage
the Economic Impact of Tourism
Critical Factor Analysis:
 Attractions/activities
 location
 facilities and services
 infrastructure
 community coordination
 competition

9. Negative Economic Impacts of Tourism
Places new stress on
existing infrastructure
Expanded police and fire
protection, search &
rescue, and medical services often
needed
Other public services needed
Where does the tourist money go?
High-risk and seasonality
of tourism enterprise
 Under-employment and Unemployment

10. Negative Economic Impacts of Tourism
Additional capital and maintenance costs
for public amenities
 parks, convention centers, recreation
areas, libraries, museums, historic restorations
Increasing numbers of visitors
means increasing local population
 need for educational services, hospitals, housing, public
welfare, and overall economic development
Tourism expansion demands greater quantities of
land and other resources.
 Competes with existing land uses
and other economic development opportunities.

11. The social impacts of tourism
Positive Impacts Negative Impacts
Improves quality of life Increased prostitution
Increase availability of
recreation facilities and
opportunities
Increased alcoholism
Improves quality of fire and
police protection
Heightened tension
Improves understanding
and image of different
communities or cultures
Increasingly hectic
community and personal
life
Facilitates meeting visitors
(an educational experience)
Increased traffic congestion
Improves quality of life Increased noise

12. The environmental impacts of tourism
Positive Impacts:
Promotes
administrative and
planning controls
Implementation of
environmental clean-up
and restoration
Allows for improvement
and preservation
Protects wildlife and
plant species
Promotes non-
consumptive uses
Negative Impacts:
Over-crowding
Over-development
Maximizing visitation
at expense of the
natural resource
Recreational impacts
on wildlife and
fragile vegetation
Air and water
pollution
Crime and vandalism
Souvenir collection

13. Socio-Cultural Impacts of Tourism
Tourist—Host Relationships & Interactions
Ethnic/Cultural differences
Language differences
Expectations
Time patterns
Spatial patterns
Intensity of development
Size of community
Commoditization
Tourist
Core
Periphery
Periphery

14. The Concept Of Tourism
Satellite Account

15. Tourism Satellite Account TSA
A Satellite Account is a term developed by the UN to
Measure the size of economic sectors that are not
defined as industries in national accounts.
Tourism is the first activity to use world wide satellite
account standards to measure its impact on national
economies- as approved by the UN 2000.
Tourism is a unique phenomenon as it is defined by the
consumer or the visitors. Visitors buy goods and services
both tourism and non-tourism alike
TSA is a new statistical instrument designed to measure
these goods and services according to international
standards of concepts, classifications and definitions
which will all allow for valid comparisons with other
industries and eventually from country to country and to
group of countries.

16. The TSA
Provides credible data on the impact of
tourism and the associated employment
Is a standard framework for organizing
statistical data on tourism
Is a new international standard endorsed
by the un Statistical Commission
Is a powerful instrument for designing
economic policies related to tourism
development
Provides data on tourism’s impact on the
nation’s balance of payments
Provides information on tourism human
resource characteristics

17. TSA Measures
Tourism contribution to the GDP
Tourism’s ranking compared to another economic
sectors
The number of jobs created by tourism in an
economy
The amount of tourism investment
Tax revenues generated by tourism industries
Tourism consumption
Tourism’s impact on a nation’s balance of
payments
Characteristics of tourism humans resources

18. The Key Players to Develop TSA
National statistical offices
National Tourism Administrations
Central banks
Associations of National tourism enterprises
Information producing Units such as
 tourism enterprises and establishments
 Transportation departments
 Customs and Excise
 Immigrations