This presentation explain the tourism context not only in Tanzania but also to other tourism developing nations

1. Importance of Tourism Satellite Account
Geoffrey Manyara
Office of Eastern Africa
July 2021
Zanzibar

2. Outline
 Introduction
 TSA and Government Strategies
 Wider TSA Applications

3. Introduction
 Tourism-industry is not explicitly recognised in the
Standard Industrial Classification of all Economic Activities
(SIC), there is little uncertainty about the growing
importance of economic activities related to this industry.
 Tourism activity is “concealed” in other industrial
activities.
 Tourism’s economic contribution can be measured,
however, through the construction of Tourism Satellite
Accounts (TSA).
 TSA extract from the National Accounts the contribution
that tourism makes to other sectors of the economy.
 Therefore, the real contribution of tourism to GDP can be
measured and comparisons with other economic sectors
listed in the national accounts undertaken.

4. Introduction
Once TSA is completed, the following aspects can be captured:
 Tourism’s contribution to Gross Domestic Product;
 Tourism’s ranking compared to other economic industries;
 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 the country’s balance of payments;
 Characteristics of the human resources in the tourism industry
Overall, the main purposes of the TSAs are to:
 analyze in detail all aspects of demand for goods and services that
may be associated with tourism within the economy;
 monitor the operational interface of the supply of such goods and
services within the same economy of reference; and
 evaluate how the supply interacts with other economic activities

5. TSA and Government Strategies
• The TSA can inform government economic strategies in
the following ways:
– Supply governments with tangible results of the impacts of
their investment in tourism. This will help to justify budget
allocations by linking budgets to clear strategies, plans and
envisaged outcomes
– Support strong economic arguments for government support
and government investment in tourism
– Provide detailed data on visitor consumption and how this
consumption is met by domestic supply and imports,
integrated within tables derived from supply and use tables
(SU-tables) of the national accounts. The information can be
used for the development of economic impact of tourism at
all levels, and also for conducting market-oriented tourism
analysis

6. TSA and Government Strategies
– Provide a basis for applying the tourism multiplier
and other model so as to measure the secondary and
tertiary impacts of tourism expenditure on the whole
economy.
– Avail accurate spending figures for different market
segments and make it easier to calculate the impact
of these segments elsewhere in the economy. By
basing plans on figures that were developed in a
coherent framework, marketers and strategists could
concentrate on those market segments which bring
the most benefit to the economy.

7. Wider application of TSA
TSA can be used to:
• develop measures of tourism yield - distinguish
the numbers and expenditure of different tourist
markets by origin
• develop performance indicators such as
measures of productivity and profitability for the
tourism industry as a whole.
• assess the role of tourism in sustainable
development - socio-cultural and environmental
• enhance the role of tourism in socio-economic
development and poverty reduction.

8. THANK YOU!