Title: The economic impact of tourism in a small region: a general equilibrium analysis applied to Ushuaia

Authors: Carlos Adrián Romero; Juan Pablo Tarelli; Juan Ignacio Mercatante

Addresses: Instituto Interdisciplinario de Economía Política de Buenos Aires, CONICET – University of Buenos Aires, Av. Córdoba 2122 (C1120 AAQ), Ciudad de Buenos Aires, Argentina ' Economics Department, University of Buenos Aires, Av. Córdoba 2122 (C1120 AAQ), Ciudad de Buenos Aires, Argentina ' Economics Department, University Torcuato di Tella, Av. Figueroa Alcorta 7350 (C1428BCW), Ciudad de Buenos Aires, Argentina

Abstract: The impact of tourism on local Argentine economies is quite significant. An increase in tourism can improve the well-being of the inhabitants and enhance the region's economic performance. However, the lack of specific information is a serious problem when it comes to regional analysis. In this study we have created a social accounting matrix (SAM) for the city of Ushuaia and apply it to calibrate a computable general equilibrium (CGE) model to study a pro-tourism policy: public investment in advertising to promote tourism. In this case, we find that this type of policy increases regional gross domestic product (GDP) by 1.6%, tax collection by 0.55% and boosts sectoral activity for tourism and non-tourism sectors alike. We also conclude that policymakers in Ushuaia should consider foreign visitors who generate higher revenue than local visitors. Nevertheless, diversification should not be forgotten.

Keywords: tourism; regional; SAM; social accounting matrix; CGE; computable general equilibrium; public policy; data scarcity; Ushuaia.

DOI: 10.1504/IJTP.2021.119101

International Journal of Tourism Policy, 2021 Vol.11 No.4, pp.335 - 354

Received: 13 Oct 2020
Accepted: 13 May 2021

Published online: 13 Nov 2021 *

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