Impact of international tourism on the Chinese economy

Since 1990, international tourism to China has grown dramatically, as has the rest of the Chinese economy. Its impact on the Chinese economy is estimated for 1997, the last year for which sufficient input–output, social accounting and tourist expenditure data are available when the paper was written. With these data, a so-called type II input–output model is constructed, which enables to estimate direct, indirect and induced impacts. The results show that 1.64% of gross domestic product, 1.40% of household income and 1.01% of Chinese employment is dependent on international tourism. The differences are explained by the sectoral composition of the tourist expenditures, together with the sectoral differences in capital/labour ratios, labour productivity and backward linkages. Copyright © 2006 John Wiley & Sons, Ltd.

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