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Sustainable tourism Development week 6 Cambridge model Stem system tourism satellite accounts interactive planning sy

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Sustainable tourism Development week 6 Cambridge model Stem system tourism satellite accounts interactive planning systems and processes. Why measure economic impact at local level?.

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Sustainable tourism Development week 6Cambridge model Stem system tourism satellite accountsinteractive planning systems and processes
why measure economic impact at local level
Why measure economic impact at local level?
  • Knowing the volume and the economic value for tourism is an essential prerequisite for developing effective policies for managing tourism within local areas.
  • Tourism economic impact studies also play an invaluable role in supporting tourism services. Through income and employment estimates they provide the justification and rationale for local authorities to invest in initiatives to support tourism industry.
  • They also help galvanise and sustain the necessary political support for tourism at a local level in the face of increased budget cuts for non-statutory functions.
key uses for data from local economic impact studies include
Key uses for data from local economic impact studies include
  • justifying the receipt of government resources such as standard spending assessment (SSA)
  • helping with the preparation of strategies and policies
  • justifying funding from outside organisations
  • enabling the organisation to measure comparative performance and assist with decision making
  • monitoring in planning and other departments
  • encouraging inward investment
  • supporting improving local infrastructure
  • releasing funding from national and European agencies
  • justifying/unlocking appropriate funds from within the organisation
  • supporting expansion plans from the area’s tourism operators
  • monitoring the results of project commitments
  • carrying out comparative performance monitoring and benchmarking assessments.
what do economic impact models measure
What do economic impact models measure?
  • Estimates of the volume and value of tourism activity, including day visitors, within an area
  • Estimates of income generated and employment supported by visitor expenditure.
considerations and key steps before choosing a model
Considerations and key steps before choosing a model
  • Some fundamental questions should be considered before undertaking an economic impact study.
  • Why is the information wanted?
  • What existing information could contribute to a study?
  • How will the study be carried out?
  • What needs consideration before the final decision?
why is the information wanted
Why is the information wanted?
  • Information is needed to counter the argument that tourism is not an important local economic sector. Information can be used to justify the tourism function, and highlight the importance of tourism within the local economy. However, there are also other important considerations to balance against this wish for data.
  • How budget is available for the study?
  • What data already exist?
  • What data can be realistically collected (in terms of staff time and participation from businesses)?
what existing information could contribute to a study
What existing information could contribute to a study?
  • Information is usually defined as being of the "supply" or "demand" type to differentiate between the product available and its market effect. Most models rely on supply information about accommodation in the area, and demand information on overnight and day visits.
supply information
Supply information
  • Resident population – local authorities and for the latest neighbourhood census data.
  • Employment statistics – government offices, regional development agencies, local authorities, business survey.
  • Number and type of tourism businesses including retail, catering and attractions – local authorities, commercial directories, audit survey.
  • Bed stock by tourism sector – local authorities, destination management organisations, tourist boards.
  • Number of tourist information centres (TIC) and other information and booking agencies – local authorities, tourist boards, DMOs.
  • Transport services available – local authorities, commercial operators.
demand information
Demand information
  • Regional and local volume and spending data on overnight and day visits for domestic and overseas visitors – RDAs, tourist boards, DMOs, local authorities, visitor surveys, industry surveys.
  • Occupancy levels – RDAs, tourist boards, local authorities, industry surveys.
  • TIC visits – local authorities, tourist boards, DMOs, tourist associations, TIC.
  • Recent visitor surveys – local authorities, tourist boards, DMOs.
  • Visitor attractions and events attendance – local authorities, RDAs, tourist boards, DMOs, commercial operators, events organisers, police authority.
  • Traffic counts and car park occupancy – local authorities, Highways Agency
how can a study be carried out
How can a study be carried out?

There are two main options for carrying out studies:

  • use a branded model
  • commission a specific ad hoc study from an appropriate university or research organisation.
cambridge model
Cambridge Model
  • The Cambridge Model (an abbreviation of Cambridge Local Area Model) provides an estimate of the volume and the economic effects of tourism activity in a selected area. It can operate at different levels according to budgets/quantity of local tourism data available.
cambridge model1

The method used is a spreadsheet model with menu-driven approach. In its basic form, it comprises two stages detailed below.

  • 1. Estimating the volume and value of tourism activity including day visits within a local area

Regional data is gathered from the UK Tourism Survey, the International Passenger Survey and the United Kingdom Day Visits Survey. To achieve local estimates, drivers such as known local accommodation stock, estimates of local residential population, visitor attraction performance data and other survey information are used.

  • 2. Estimating employment supported by visitor spending

The model estimates employment using the data collected, internal business data and estimates of spending by different visitor groups. Using multipliers and adjustments, an estimate of indirect and induced jobs completes the picture.


Outputs include estimates of:

  • value and volume of staying trips by domestic and overseas staying visitors, with breakdowns for purpose of visit and type of accommodation used
  • the number of nights spent by overseas and domestic visitors
  • value and volume of day trips
  • direct visitor expenditure by different sector, eg accommodation, eating/drinking, shopping, attractions, transport/travel
  • impact of associated multiplier and linkage spend
  • indication of the level of direct and indirect employment and induced jobs resulting from the wages of people in direct and indirect tourism employment
steam model

The Scarborough Tourism Economic Activity Monitor (STEAM) provides an indicative base of the local economic impact of tourism (from both staying and day visitors) for monitoring trends

steam model1
Steam model

The method used is a spreadsheet model that uses values, relationships and equations from local input data. As a minimum, implementation of STEAM within an area depends on the following inputs:

  • information on occupancy percentages each month for each type of accommodation
  • bed stock of each type of accommodation
  • attendance at attractions/major events by month
  • Tourist Information Centre (TIC) visitors by month.

The STEAM report provides commentary, annual and month-by-month numeric outputs for the years of study and comparison with previous study information, including:

  • distribution of visitor spending
  • revenue generated by the main categories of visitor
  • annual number of visitor days spent in the area by category of visitors
  • total count of all visitors annually
  • full-time employment generated by visitor spending.
the report includes
The report includes:
  • economic impact
  • population
  • employment
  • tourist days/tourist numbers
  • vehicle days/vehicle numbers
  • bed stock
  • relationship of direct and indirect impacts
  • data available to determine employment generated.
  • The Cambridge model is essentially a lower cost means of estimating a broadly indicative pattern of the overall value of local tourism. To use the Cambridge model, it is necessary for a local authority to supply what it knows of its local database of accommodation capacity.
  • But, as with STEAM, this is seldom a simple process and greater collaboration with local businesses produces better results. Reliance on national survey statistical variations means that the Cambridge model cannot generate reliable year-on-year trend information and for this reason it is often not used in consecutive years.

STEAM costs more than Cambridge but it delivers more. Provided that a local authority works with the STEAM team to develop its supply-side database and collaborates with local businesses, especially over the vital survey of local occupancy usage, the statistical variations in which directly influence estimates of demand, the data it produces will be acceptably reliable and capable of comparison over time and between areas.

  • Although the absolute numbers cannot be guaranteed, as with any model, the direction of change for trends should be valid and reliable as well as actionable in decision terms. Annual trend information is a strong feature of the STEAM model, which is normally purchased to cover several consecutive years.
tourism satellite accounts
Tourism Satellite Accounts

Statistical information on the nature, progress and consequences of tourism is on a whole scanty and incomplete

This situation deprives governments, businesses and citizens of trustworthy information necessary for effective public policies and efficient business operations

tourism satellite accounts1
Tourism satellite accounts

Satellite accounts is a term developed by the UN to measure the sze of economic sectors that are not included in their own rights in national accounts

A tourism satellite account runs alongside national accounts, drawing from each sector that has a tourism component without distributing the totals. It results in figures that measure tourism’s true contribution to GDP

tourism satellite accounts2
Tourism satellite accounts

Specifically , a country’s TSA can provide valid and reliable estimates of the following:

  • The number of jobs generate by tourism activity
  • The value of public and private sector investments related to tourism
  • The value of the gov’t income generated by tourism in a country
  • The size of the tourism industry relative to other industry
  • Contribution to GDP
tourism satellite accounts3
Tourism Satellite Accounts

Why is a Tourism Satellite Account needed?:

Governments often underestimates the economic benefits that tourism provides because it is not as visible as industries such as manufacturing.


Business enterprises often fail to realize the role that tourism plays in their success and do not take full advantage of opportunities in this rapid growing activity

how does tourism satellite accounts
How doestourism satellite accounts

The World Tourism Organization(WTO) has designated the conceptual framework for a Tourism Satellite Account which sets international standards for measuring the contribution tourism makes to a country’s economy and the welfare of its citizens

tourism satellite accounts4
Tourism Satellite Accounts

The Caribbean Tourism Organization in 1999 began working with six countries namely

  • Jamaica
  • Bahamas
  • St. Lucia
  • Anguilla
  • Barbados
  • BVI

to develop Satellite Accounting systems through a European Union Project. These values are displayed on a set of inter – related tables

tourism planning
Tourism Planning

Interactive planning, focuses on creating the future by designing a desirable present. Interactive planning is unlike other types of planning, such as reactive planning, inactive planning, and preactive planning.

tourism planning1
Tourism Planning

Interactive planning has three unique characteristics:

  • Interactive planning works backwards from where an organization wants to be now to where it is now.
  • Interactive planning is continuous; it does not start and stop.
  • Interactive planning lets the organization’s stakeholders to be involved in the planning process
Question ?

What are tourism interactive planning systems?

Provide examples for a community based project