The economic impact of international travelers in the hospitality industry of Austin, Texas, USA in 2021: a regional input-output and data visualization approach
DOI:
https://doi.org/10.46793/ICEMIT23.041PKeywords:
input-output, revealed preferences, international travelers, economic impactAbstract
The purpose of this paper is to estimate the economic impact of departing international flights in the hospitality industry and other related industries of Austin, Texas, USA in 2021 using an input-output approach and to present the results using data visualization tools. The estimated total economic impact of the international flights departing from Austin, Texas in its economy is around $77 million USD in business sales. The total impact is comprised by the direct, indirect, and induced effects in the regional economy. The indirect and induced effects are estimated to be $26 million in output and a direct effect of $51 million. These estimates imply an estimated output multiplier of 1.6. For every $100 USD spent in the air passenger industry, $60 additional USD are generated due to related industries to the air transportation industry. While the literature on regional economic impact of the hospitality industry is extensive, this paper intends to present a holistic and integrated approach by attempting to present a bridge between travelers’ sentiments, patterns in preferences, and the economic impact of international flight in the regional economy.
References
Austin Texas (November 2022). Austin-Bergstrom International AirportAviation Activity ReportCalendar Year 2021 vs 2020. Combined Terminals. Total Passenger Activity. International Enplaned Revenue https://www.austintexas.gov/sites/default/files/images/Airport/news_releases/Stats/2021/May%202021.pdf Accessed 2 Dec. 2022.
Ali, R., Bakhsh, K., & Yasin, M. A. (2023). Causal nexus between air transportation and economic growth in BRICS countries. Journal of Air Transport Management, 107, 102335. https://doi.org/10.1016/j.jairtraman.2022.102335
Arizona Department of Tranposrtation. (2021). Arizona Aviation Economic Impact Study. Retrieved 08 21, 2023, from https://azdot.gov/sites/default/files/media/2021/10/2021ArizonaAEISTechReport_FINAL.pdf
Artal-Tur, A., Navarro-Azorin, J. M., & Ramos-Parreno, J. M. (2021). Estimating the impact of cruise tourism through regional input–output tables. In Tourism Research in Ibero-America Urban Destinations, Sustainable Approaches and New Products (p. 134). London: Routledge.
Benckendrorff, P. (2006). An Exploratory Analysis of Traveler Preferences for Airline Website Content. Information Technology & Tourism, 149-159. https://doi.org/10.3727/109830506778690867
Beshears, J., Choi, J. J., Laibson, D., & Madrian, B. C. (2008). How are preferences revealed?. Journal of public economics, 92(8-9), 1787-1794. https://doi.org/10.1016/j.jpubeco.2008.04.010
Bonet‐Morón, J., Ricciulli‐Marín, D., Pérez‐Valbuena, G. J., Galvis‐Aponte, L. A., Haddad, E. A., Araújo, I. F., & Perobelli, F. S. (2020). Regional economic impact of COVID‐19 in Colombia: An input–output approach. Regional Science Policy & Practice, 12(6), 1123-1150. https://doi.org/10.1111/rsp3.12320
Bonn, M. A., & Harrington, J. (2008). A comparison of three economic impact models for applied hospitality and tourism research. Tourism economics, 14(4), 769-789. https://doi.org/10.5367/000000008786440148
Bureau of Economic Analysis US Department of Commerce. (2013). RIMS II An essential tool for regional developers and planners. Bureau of Economic Analysis. Retrieved from https://www.bea.gov/sites/default/files/methodologies/RIMSII_User_Guide.pdf
Coffman Associates. (2020, 12). Economic Benefit Analysis Salinas Municipal Airport. Retrieved 08 21, 2023, from https://www.cityofsalinas.org/files/sharedassets/city/public-works/documents/salinas_economic_benefit_analysis_111120.pdf
Curtale, R., Larsson, J., & Nässén, J. (2023). Understanding preferences for night trains and their potential to replace flights in Europe. The case of Sweden. Tourism Management Perspectives, 47, 101115. https://doi.org/10.1016/j.tmp.2023.101115
Demuynck, T., & Hjertstrand, P. (2019). Samuelson’s approach to revealed preference theory: Some recent advances. Palgrave: Macmillan UK.
Economic Development Research Group. (2019). Economic Impact Study of San Francisco International Airport. Retrieved 08 21, 2023, from https://www.flysfo.com/sites/default/files/SFO_Economic_Impact_Report_2019.pdf
Faber, B., & Gauber, C. (2019). Tourism and Economic Development: Evidence from Mexico's Coastline. American Economic Review, 109(6), 2245-2293. https://doi.org/10.1257/aer.20161434
Georgia Department of Transportation Aviation Programs Office. (2020, September). 2020 GEORGIA STATEWIDE AIRPORT ECONOMIC IMPACT STUDY. Retrieved 09 21, 2023, from https://www.dot.ga.gov/InvestSmart/Aviation/EconomicImpactStudy/Technical%20Report.pdf
Hewings, G. (1985). Regional Input-Output Analysis. Retrieved from https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1009&context=rri-web-book
ICF. (2021, September). McClellan Palomar Airport Economic Impact Analysis. Retrieved 08 21, 2023, from https://www.sandiegocounty.gov/content/dam/sdc/dpw/AIRPORTS/palomar/documents/Master-Plan-Update/2021/Palomar_Airport_Economic_Impact_Analysis-9.28.21.pdf
Jviation, a Woolpert Company. (2020, December). UTAH statewide airport economic impact study. Retrieved from https://www.udot.utah.gov/connect/wp-content/uploads/sites/50/2022/05/Utah-Statewide-Airport-Economic-Impact-Study-Technical-Report-2.pdf
Kimley Horn. (2020, July). Idaho Airport System Plan Update and Airport Economic Impact Analysis Update. Retrieved 08 21, 2023, from https://itd.idaho.gov/wp-content/uploads/2022/08/Aero_AEIA.pdf
Leontief, W. (1986). Input-Output Economics. New York: Oxford University Press.
Liu, Y., Jiang, Q., & Gleasure, R. (2023). Hitting Net-zero without stopping flying: Increasing air travelers’ likelihood to opt-in to voluntary carbon offsetting. Journal of Travel Research, 62(1), 21-38. https://doi.org/10.1177/00472875211057607
Loomis, J., & Caughlan, L. (2006). The importance of adjusting for trip purpose in regional economic analyses of tourist destinations. Tourism Economics, 12(1), 33-43. https://doi.org/10.5367/000000006776387105
Lynch, T. (2000, October). Analyzing the Economic Impact of Transportation Projects Using RIMS II, IMPLAN and REMI. Retrieved 08 25, 2023, from Center for Eonomic Forecasting and Analysis: https://cefa.fsu.edu/sites/g/files/imported/storage/original/application/18d780904fc532b3cf0bcdcc8a082bfa.pdf
Mariolis, T., Rodousakis, N., & Soklis, G. (2020). The COVID-19 multiplier effects of tourism on the Greek economy. Tourism Economics, 27(8), 1591-1855. https://doi.org/10.1177/1354816620946547
Nebraska Aviation Counts. (2019). Economic Impact Study Technical Report. Retrieved from https://dot.nebraska.gov/media/cercx25d/nac-technical-report_928.pdf
PeCoy, M. D., & Redmond, M. A. (2023). Flight reliability during periods of high uncertainty. Journal of Air Transport Management, 106, 102322. https://doi.org/10.1016/j.jairtraman.2022.102322
Randrianarisoa, L. M., & Gillen, D. (2023). Policy responses and travellers’ preferences in pandemics: Evidence from Europe. Transport Policy, 141, 305-316. https://doi.org/10.1016/j.tranpol.2023.07.028
Research Department of the U.S. Travel Association. (2017, 10). The Economic Impact of Travel on Massachusetts Counties 2016. Retrieved 08 21, 2023, from https://www.visitma.com/wp-content/uploads/2016/11/MA-2016-Report-Oct-4-2017-2.pdf
Rickman, D., & Schwer, R. K. (1995). A comparison of the multipliers of IMPLAN, REMI, and RIMS II: Benchmarking ready-made models for comparison. The Annals of Regional Science, 29, 363-374. https://doi.org/10.1007/BF01581882
Rockport Analytics. (2022, December). Travel & Tourism Makes a Convincing Recovery from the COVID-19 Pandemic. Retrieved 08 21, 2023, from https://www.visitflorida.org/media/30679/florida-visitor-economic-impact-study.pdf
Samuelson, P. A. (1938). A note on the pure theory of consumer's behaviour. Economica, 5(17), 61-71. https://doi.org/10.2307/2548836
Samuelson, P. A. (1948). Consumption theory in terms of revealed preference. Economica, 15(60), 243-253. https://doi.org/10.2307/2549561
Tourism Economics. (2020). Economic Impact of Tourism in Orlando 2020. Retrieved 08 21, 2023, from https://assets.simpleviewinc.com/simpleview/image/upload/v1/clients/orlandofl/2020_Orlando_tourism_economic_impact_4337d53e-ad65-4828-8afd-05890fe1a79a.pdf
Tourism Economics. (2020). Economic Impact of Visiotrs in Illinois 2020. Retrieved 08 21, 2023, from https://www.enjoyillinois.com/assets/PDF-Docs/Illinois-2020-Visitor-Economic-Impact.pdf
Tourism Economics. (2021). The Economic Impact of Tourism in South Dakota. Retrieved 08 21, 2023, from https://sdvisit.com/sites/default/files/2022-03/21EcoImp_Tourism_Economics_Counties.pdf
Tourism Economics. (2023, March). Economic Impact of Travel and Tourism in Pennsylvania - 2021. Retrieved 08 21, 2023, from https://www.visitpa.com/sites/default/files/pdfs/2021_Economic_Impact_of_Tourism_in_Pennsylvania_FINAL_ES.pdf
Tripadvisor. American Airlines Flights and Reviews-Tripadvisor, www.tripadvisor.com/Airline_Review-d8729020-Reviews-or125-American-Airlines.html#REVIEWS. Accessed 2 Dec. 2022.
U.S. Census Bureau (2022). North American Industry Classification System. https://www.census.gov/naics/?58967?yearbck=2012. Accessed 2 Dec. 2022.
United States Department of Commerce, International Trade Administration, ADIS/I-94 Arrivals Program, https://www.trade.gov/i-94-arrivals-program.Accessed 2 Dec. 2022.
Varian, H. R. (2006). Revealed preference. Samulesonian economics and the twenty-first century, 99-115.
Wilke, C. O. (2019). Fundamentals of Data Visualization: A Primer on Making Informative and Compelling Figures. Sebastopol: O'Reilly.
Word art. Create. https://wordart.com/ Accessed 2 Dec. 2022.
Wyoming Department of Transportation. (2020). 2020 WYDOT Aeronautics Division Aviation Economic Impact Study. Retrieved 08 21, 2023, from https://www.dot.state.wy.us/files/live/sites/wydot/files/shared/Aeronautics/Economic-Impact/Aviation%20Economic%20Impact%20Executive%20Summary.pdf
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 International Scientific Conference on Economy, Management and Information Technologies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
