Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313420 
Year of Publication: 
2025
Series/Report no.: 
GLO Discussion Paper No. 1577
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
Tourism influences local economies through direct, indirect, and induced effects. Using novel firm-to-firm transaction data, we shed light on tourism's indirect effects. We find that tourism firms primarily source inputs locally or from the capital, with limited purchases from distant, poorer regions. While direct imports by tourism firms are relatively small, indirect imports-those embedded in supply chains-are substantial, comprising 54.2% of total supplier costs. Our findings suggest that overlooking indirect imports may lead to an overestimation of tourism's true economic contribution.
Subjects: 
firm-to-firm transaction data
economic leakages
supplier spending
indirect imports
local economic impact
JEL: 
L83
R12
F14
D22
O18
Document Type: 
Working Paper

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