Impacts of Visitor
Spending on Local Economy:
Crater Lake National
Park, 2001
Appendix A: Definition of Terms in the MGM2 Model
<<
Previous
|
Table of
Contents |
Next
>>
Sales - Sales of firms within the region to park
visitors.
Jobs The number of jobs in their region
supported by the visitor spending. Job estimates are not full time equivalents,
but include part time and seasonal positions.
Personal income - Wage and salary income,
proprietor’s income and employee benefits.
Value added - Personal income plus rents and
profits and indirect business taxes. As the name implies, it is the value added
by the region to the final good or service being produced. It can also be
defined as the final price of the good or service minus the costs of all of the
non- labor inputs to production.
Direct effects - Direct effects are the changes
in sales, income and jobs in those business or agencies that directly receive
the visitor spending.
Secondary effects - These are the changes in the
economic activity in the region that result from the re-circulation of the money
spent by visitors. Secondary effects capture the sum of indirect and induced
effects.
Indirect effects - Changes in sales, income and
jobs from industries that supply goods and services to the business that sell
directly to the visitors. For example, linen suppliers benefit from visitor
spending at lodging establishments.
Induced effects - Changes in economic activity in
the region resulting from household spending of income earned through a direct
or indirect effect of the visitor spending. For example, motel and linen supply
employees live in the region and spend the income earned on housing, groceries,
education, clothing and other goods and services.
Total effects - Sum of direct, indirect and
induced effects.
-
Direct effects accrue largely to
tourism-related business in the area
-
Indirect effects accrue to a broader set of
economic sectors that serve these tourism firms.
-
Induced effects are distributed widely across
a variety of economic sectors.
Marginal impacts - Economic impacts created per
additional visitors or dollars spent.