Tourism Multipliers under Capacity Constraints

Abstract

The estimation and use of tourism multipliers are now fairly widespread. A strong theoretical criticism is that the use of average values implies the availability of surplus capacity to meet future demand. This criticism may be countered by placing restrictions on the structure of the model so as to estimate multipliers in situations where there are constraints on domestic capacity. The example of Mauritius is used to illustrate this process.

^*Department of Management Studies for Tourism and Hotel Industries,University of surrry.

^*Department of Management Studies for Tourism and Hotel Industries,University of surrry.

Notes

^*Department of Management Studies for Tourism and Hotel Industries,University of surrry.