Economic impacts of an increase in the foreign tourism receipts: A sam-based income multiplier analysis for Turkey

Abstract

This study aims at analyzing the impacts of an increase in inbound tourism receipts in Turkey. To carry out the analyses a social accounting matrix is developed, that explicitly included tourism as an aggregate industry, by basing on input-­‐‑output and tourism satellite account tables. Income multipliers derived from this social accounting matrix are used to reveal the effects on inter-­‐‑industry relations, factor and household incomes. Empirical findings suggest that demand side shocks on tourism industry might be used to boost the overall economy and to cope with unemployment problem. In addition, the economic potential involved in tourism industry seems to be promising in terms of reaching the intended targets declared in “Tourism Strategy of Turkey-­‐‑2023”.