Economic Potentials of Tourism for Jordan: Input-Output Analysis
DOI:
https://doi.org/10.35516/jjes.v9i2.221Keywords:
Tourism impact, Output multiplier, Input-output analysis, Employment multiplier, Economic linkages.Abstract
Objective: This study aims to assess the potential contributions of tourism to the Jordanian economy by examining its effects on other sectors.
Methods: Based on the most recent 2016 input-output table, several indicators have been derived, including backward and forward linkages, as well as multipliers for output, value-added, taxes, imports, and employment.
Results: The study indicates that an increase of JD 1 in final demand by tourists leads to a rise in output by JD 1.55, value added by JD 0.74, employment by 0.069 jobs, and imports by JD 0.22. A comparison of these results with those from other countries—such as Turkey, Tanzania, Ireland, Jamaica, and Romania—reveals a relatively weak expected impact of tourism in Jordan. This outcome is largely due to the fact that most of the multiplier effects are confined to individual sectors, with limited spillover effects to other sectors.
Conclusions: The study recommends the development of tourism-related service infrastructure, such as transportation; reducing tax burdens on the restaurant and hotel sectors; and encouraging local workers to pursue employment in the tourism industry.
