Abstract:
Measuring the contribution of tourism to a national economy has always been a frustrating exercise.
Tourism does not have specific products. It represents the sum of expenditure by travellers for wide
range of products. It is not possible to identify tourism as a single "industry" in the national accounts,
its value to the economy is not readily revealed. As a result of the absence of tourism in official
economic statistics, there is often an on-going battle to establish tourism credibility as an economic
activity and generator of income in the economy. As a result, a significant volume of tourism research
over the past few decades have focussed on the development and use of a variety of economic
techniques aimed at quantifying the effects of tourism on an economy. In conventional literature has
proven that Computable General Equilibrium (CGE) modelling is the best applied tool addressing and
analysing tourism related issues in an economy. The paper provided a complete description of the
theoretical structure of the CGE-Tourism including all equations and variables by using relevant
Excerpts for different blocks of equations in the TABLO file associated with the GEMPACK software
used to operationalise the model. The incorporation of tourism using the dummy sector approach into
an ORANI type CGE model as an extension and can be considered as the main contribution of this
study to the CGE modelling literature for an economy. This is a clear departure from the traditional
methods used for tourism modelling in an economy. This model can be used to simulate the economic
impact of the tourism boom in an economy.