ECONOMICS AND TOURISM

This paper surveys applications of economic analysis to tourism. Application of economic logic and tools, such as consumer and production theory, market structure, deductive modeling, cost-benefit analysis, econometric analysis, and multiplier analysis, are all discussed as they relate to tourism. The economic perspective on tourism provides insights into the types of choices and decisions which consumers, private sector suppliers, government agencies, and policymakers make. It also provides a structure for identifying which types of data should be gathered, organized, and interpreted for purposes of better understanding tourism markets, constructing forecasts, and aiding in policy choices involving resource allocation. © 1991.