Measuring the impact of tourism on the economy through regional input-output modelling

This paper discusses the most recent developments in the methodologies to regionalize national I-O tables. The final objective is to test whether different regional rescaling procedures deliver significant differences in the multipliers and, specifically, whether these lead to significant different results in the interpretation of how changes in the tourism industry impact on a local economy. To this extent we build multiple regional models using different techniques of regionalization (non-survey methods) using Italian input-output table provided by Eurostat for the year 2010. As a result, we investigate the effects of different shocks in the demand from tourists in an Italian region, Campania using national Tourist Satellite Account data for the year 2010. The results confirm the intuition that following a shock on tourism demand the predicted effects on main aggregate variables can significantly differ depending on the shock and on the rescaling procedure.