Open AccessTourism Industrial Linkages In Rwanda’s Economy
Author(s) -
Pius Odunga
Publication year - 2022
Publication title -
journal of tourism economics and policy
Language(s) - English
Resource type - Journals
eISSN - 2807-2839
pISSN - 2775-2283
DOI - 10.38142/jtep.v2i1.227
Subject(s) - tourism , economics , agriculture , consumption (sociology) , value (mathematics) , social accounting matrix , gross output , economic impact analysis , national accounts , tertiary sector of the economy , final demand , production (economics) , input–output model , labour economics , economy , macroeconomics , geography , computable general equilibrium , microeconomics , social science , archaeology , machine learning , sociology , computer science
Measurement of tourism economic impacts is important in monitoring progress towards meeting planned socio-economic goals. However, there has been insufficient attention to rigorous analysis of the ramifications of tourism beyond accounting for initial impacts. This study evaluates economic impacts of tourism in Rwanda by examining its effects on employment, labor incomes, and output and value addition. Rwanda’s 2014 Input-Output tables was used to compute direct, indirect, induced and total (SAM Type) multipliers which were interacted with internal tourism demand data from Rwanda’s 2014 tourism satellite account to estimate impacts. Labor income, output and value added multipliers indicate that tourism has strong linkages with service sectors, while the employment multiplier indicates robust linkages with agriculture. Results indicate that internal tourism demand created 29% of all jobs, generated 9.7% of labor incomes, 11.1% of total value addition and 12% of national output in 2014. Therefore, increasing internal tourism demand in Rwanda will lead to higher labor income, increased output and value addition and higher employment in agriculture and other associated sectors. This study’s main contribution is taking into account the predominantly informal sector of Rwanda’s economy especially with respect to the domestic tourism market. Future studies could estimate the magnitude of leakages from the economy through consumption and production processes.