nep-tur New Economics Papers
on Tourism Economics
Issue of 2016‒06‒04
one paper chosen by
Laura Vici
Università di Bologna

  1. Tourism, Natural Resource Use and Livelihoods in Developing Countries: A Bioeconomic General Equilibrium Approach By Gilliland, Ted E.; Sanchirico, James N.; Taylor, J. Edward

  1. By: Gilliland, Ted E.; Sanchirico, James N.; Taylor, J. Edward
    Abstract: Protecting degraded open-access natural resources while maintaining or improving individuals’ livelihoods is a major challenge, particularly in developing countries. Tourism (especially ecotourism) is often viewed as a win-win solution that can shift natural resource users away from resource extraction and increase local incomes. Existing studies examining the impacts of tourism on natural resource use and livelihoods fail to account for the full suite of effects tourism has on local economies. We offer a new methodology to assess the impacts of tourism growth by combining local economy-wide impact evaluation (LEWIE) techniques from development economics with bioeconomic modeling techniques from natural resource economics. We construct our “Bio-LEWIE” model using a novel data set of microeconomic and biological data from the western Philippines. We simulate the impact of a 10 percent increase in tourism expenditures on fishing pressure and local incomes for different socioeconomic groups (e.g., poor households versus nonpoor households). We find that if fish cannot be traded with outside markets, fishing pressure increases and real incomes decrease for most households in the long-run; this counteracts some of the benefits of tourism. In contrast, if fish can be imported, fishing pressure decreases and real incomes increase for most households in the long-run; this reinforces potential gains from tourism growth and may even counteract losses by poorer socioeconomic groups. The Bio-LEWIE model predicts the costs and benefits of tourism growth, when they will occur, and for whom. This framework can help policy-makers in the developing world find synergies between natural resource protection, sustainable livelihoods, and economic growth.
    Keywords: Natural resources, Fisheries, Poverty, Tourism, Bioeconomic models, CGE, Food Security and Poverty, International Development, Resource /Energy Economics and Policy, Q22, O12, Z32,
    Date: 2016

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