e x e c u t i v e s u m m a r y Larry Dwyer, Peter Forsyth, Liz Fredline, Leo Jago, Marg Deery and Sven Lundie

Transcription

1 Cncepts f Turism Yield and Their Measurement e x e c u t i v e s u m m a r y Larry Dwyer, Peter Frsyth, Liz Fredline, Le Jag, Marg Deery and Sven Lundie

2 Disclaimer The views cntained in this publicatin are thse f the authrs and d nt necessarily represent the views f the Sustainable Turism CRC. While the authrs have made all reasnable effrts t gather the mst current and apprpriate infrmatin, the Sustainable Turism CRC (STCRC) d nt make any warranty as t the crrectness, cmpleteness r suitability f the infrmatin and shall in n event be liable fr any lss r damage that yu may suffer as a result f yur reliance n this infrmatin. Cpyright CRC fr Sustainable Turism Pty Ltd 00 All rights reserved. Apart frm fair dealing fr the purpses f study, research, criticism r review as permitted under the Cpyright Act, n part f this bk may be reprduced by any prcess withut written permissin frm the publisher. Enquiries shuld be directed t Brad Cx, Directr Cmmunicatins & Industry Extensin [brad@crcturism.cm.au] r Trish O Cnnr, Publishing Manager [trish@crcturism.cm.au]. Acknwledgements The Sustainable Turism Cperative Research Centre, an Australian gvernment initiative, funded this research. Given the substantial scpe f the reprt, sme specialisatin was inevitable. Larry Dwyer and Peter Frsyth, members f the STCRC ecnmic mdelling team, assumed primary respnsibility fr develping the ecnmic measures. Marg Deery, Liz Fredline and Le Jag develped the scial measures and Sven Lundie develped the envirnmental measures. That said, the interest f all team members is in mving away frm the separate develpment f yield indicatrs twards an index f sustainable yield. Unfrtunately achievement f this task still represents an nging challenge fr researchers. The authrs wish t thank Carlina Rman fr her develpment f the graphics cntained in this reprt. They als wish t thank Ray Spurr fr his insightful cmments n the draft reprt.

3 Intrductin Until recently, turism industry fcus has been n visitr numbers rather than yield. Althugh there has been much said abut the need t mve past visitatin numbers t mre meaningful measures f yield, this has been little mre than rhetric. Hwever, there is nw widespread recgnitin f the fact that turism visitr numbers have little meaning, with the term prfitless vlume having been used since the early 990s. A key theme f the Federal Gvernment s Turism White Paper is that, t attract visitrs and generate repeat visitatin, Australia s turism industry must earn a reputatin fr quality, value and variety. T this end, Australian turism stakehlders shuld be pr-active in develping new and innvative prducts and experiences with a fcus n develping high-yield niche markets. A fcus n yield is an imprtant aspect f business strategies t maintain and enhance Australia s turism cmpetitiveness. Aims and Objectives The primary aim f this reprt is t develp tls fr measuring and enhancing the yield frm turism at the business, reginal and natinal levels. This verall bjective subsumes several mre specific bjectives: First, t clarify the different cncepts f turism yield. Secnd, t develp peratinal measures f yield at the level f the firm and at destinatin, reginal, state and natinal levels. The final bjective invlves discussin and analysis f the plicy implicatins f the study.

4 Cncepts f Yield Yield has many dimensins. It can be viewed frm the perspectives f a business, an industry, a particular niche market r a natin. Using a narrw definitin f yield, as used by many turism stakehlders (and the viewpint adpted in the White Paper), the cncept refers t the expenditure injectins f turists (sales revenues) r the prfitability f catering t different visitr markets. Yield can be defined purely frm an accunting perspective where it apprximates sales revenues per visitr r the financial rate f return t peratrs, r grss perating surplus f different industry sectrs. Alternatively, the prfitability t the turism industry f different market segments can be assessed. Yield can als be defined frm a wider ecnmic perspective where it is assciated variusly, with cntributin t Grss Dmestic Prduct (GDP), cntributin t grss value added, r emplyment generated. The fllwing discussin elabrates further n visitr yield, yield as turist expenditure, financial yield, yield as ecnmic impact and sustainable yield. Visitr Yield Yield, as a demand side cncept, relates t the perceived value f the turist experience frm the visitr viewpint. This cncept relates t the satisfactin r value experienced by the visitr frm the cnsumptin f prducts and services. The cncept f custmer value is an imprtant cncept in cnsumer behaviur. Fr present purpses the fcus is n supply side cncepts f yield. Yield as Turist Expenditure Expenditure, whether fr ttal trip r per visitr night is the standard measure f turism yield. Expenditure measures have limited relevance fr plicy making t enhance turism yield. In summary: Grss expenditure data d nt, in themselves, prvide infrmatin n the types f gds and services turists purchase and s give n indicatin f the industry sectrs that receive the sales revenues. Grss turist expenditure includes the imprt cntent f the gds and services purchased by turists. Since these imprts must be paid fr by the suppliers f turism prducts, expenditure levels in themselves d nt indicate the sales revenues t dmestically based firms net f imprts. Since the fcus is n sales revenues, the apprach neglects the aggregate csts f prviding the services t each segment. The expenditure measure f yield takes n accunt f this, either at the business peratr level r at the destinatin level. Grss expenditure per se des nt prvide infrmatin n the relative spread f expenditure in the wider destinatin. The grss expenditure measure des nt indicate hw the expenditure will impact (smetimes adversely) n ther industries and what its net impacts n the ecnmy will be. Grss expenditure measures d nt in themselves indicate the scial and envirnmental impacts assciated with turist activities.

5 Financial Yield Yield can be regarded as the rate f prfit n turism sales. This can be estimated by the share f Grss Operating Surplus (GOS) in turism cnsumptin made by the turism market. This measure f yield can apply t the turism industry as a whle, r t particular sectrs f the industry (turism characteristic r turism cnnected industries). Within the reprt, a number f ways t address the issue f financial yield are prvided. These are yield as: a rate f prfit at industry level a rate f prfit fr the industry r industry sectr frm a particular market a rate f return n capital a rate f return at industry level a rate f return fr the industry frm a particular visitr market prfit at the ecnmy wide level the prfitability apprach t yield. Yield as Ecnmic Impact Anther set f yield measures relate t the ecnmic impacts f turist expenditure. The ecnmic impacts refer t the direct plus indirect effects f turist expenditure n the ecnmy. The expenditure f turists stimulates ecnmic activity, and creates additinal business turnver, emplyment, husehld incme and gvernment revenue in the hst destinatin. The initial injectin f mney has direct, prductin induced and cnsumptin induced impacts n the lcal ecnmy. This prcess cntinues and mney is circulated arund the ecnmy until it eventually leaks away thrugh retained earnings, taxes and imprts. This ripple effect in an ecnmy is termed the turism multiplier. Any calculatin f a turism multiplier, hwever defined, invlves a mdel describing the mechanisms by which ecnmic impacts are transmitted thrugh the ecnmy. N single ecnmic measure f yield will cver all f the ptential ecnmic impacts f turist expenditure. This reprt prvides fur impact measures f yield:. Yield as cntributin t Grss Dmestic Prduct (r Grss State Prduct). Yield as cntributin t value added 3. Yield as cntributin t emplyment. Yield as cntributin t net benefit. There are tw methds f estimating yield using these frmulae:. One methd is t emply a TSA, enabling GDP/GSP, Grss Value Added (GVA), Grss Operating Surplus (GOS) and emplyment measures f yield t be develped. This apprach has been emplyed by TRA in its recent estimates f turism yield at the natinal level.. The ther methd is t emply a Cmputable General Equilibrium (CGE) mdel t estimate the ecnmic impacts (and net benefits) f turist visitatin. The CGE mdel prvides measures f the verall impact n ecnmic variables frm additinal turism.

6 Sustainable Yield On a wider perspective, the ntin f yield includes envirnmental and scial value in additin t ecnmic value. Each turism market segment is ptentially assciated with ecnmic, scial and envirnmental csts as a result f the mix f services utilised during their stay. These csts, r ftprints, vary acrss market segments depending n the mix f services utilised by the turist. The ntin f sustainable yield wuld seem t apply at the peratr level as well as at the destinatin level. At the peratr level, an apprach which hlds sme prmise f develping the ntin f sustainable yield is Triple Bttm Line (TBL) reprting. TBL is becming the accepted apprach fr rganisatins t demnstrate they have strategies fr sustainable grwth. In effect, TBL is a planning and reprting mechanism and decisin-making framewrk used t achieve sustainable develpment in bth private and public sectr rganisatins - an internal management tl as well as an external reprting framewrk. An increasing interest in TBL is nw evident acrss business and gvernment internatinally. Increasingly, turism peratrs want turism t demnstrate their perfrmance ecnmically, envirnmentally and scially. This accrds with the TBL apprach that is increasingly being adpted by firms in all industries. The relevance f TBL reprting t the ntin f yield in turism has nt been addressed t date. It is an bjective f this reprt t help t develp standardised, cnsistent, measurement and reprting methds f turism yield which are cnsistent with the TBL apprach. Measuring Turism s Ecnmic Yield: Recent Results f Turism Research Australia The reprt prvides an verview and critique f sme recent attempts by Turism Research Australia t measure turism yield. Turism Research Australia has recently undertaken tw studies that estimate aspects f turism yield in Australia. Bth appear in the Jurnal f Turism Research Australia. The purpse f the discussin is t illustrate hw sme f the cncepts highlighted abve can be peratinalised. In the first study, TRA estimated yield fr eight selected niche markets. Three measures were used. The first was rate f prfit n turism sales; the secnd was turism GOS per visitr; and the third was emplyment generated per thusand visitrs frm a niche market. TRA makes an imputatin fr the internatinal airfare cmpnent in the expenditure data used t derive its yield estimates.

7 Prpsed Methdlgy fr Measuring Turism Yield The first study estimated yield fr eight selected niche markets. The three measures were used as described abve and the results are shwn in Table. Table : Yield rates, GOS and Emplyment Generated in Selected Niche Markets, 00/0 Niche Market Turism cnsumptin Per visitr Turism GOS per visitr $ Yield rate per cent Emplyment generated per thusand visitrs number Japanese Hneymners German Hliday Makers Backpackers NZ Mature Malaysia first timers UK repeat Business Students All Inbund Visitrs Surce: Salma and Heaney 00 Table. ABS (003) and IVS (000/00). Yield rate = GOS divided by turist cnsumptin A mre detailed discussin can be fund in the full reprt. Limitatins We pint ut a number f limitatins that arise in the use f this apprach t measuring yield. First, TRA paper acknwledges that the prfitability measure they prpse ignres the cmplexities f differential rate f prfit by type f prduct within the same industry. In applying an average rate f prfit t the industry it thus des nt distinguish between the different prduct markets f an industry. The rate f prfit in the accmmdatin industry, fr example, is nt unifrm acrss all types f prperty. Caravan parks and 5-star htels are likely t have very different rates f prfit. The abve apprach t measuring yield des nt cnsider this difference. Rather it assumes an average rate f prfit fr all types f accmmdatin. As a result, if a niche market is characterised by the verwhelming use f a particular type f accmmdatin, applying an average rate f prfit in that case will give a yield rate that differs frm the actual yield (and s als fr all ther industry sectrs). The yield measures derived by TRA rely n the Australian Turism Satellite Accunt ignring the ecnmy wide effects f expenditure frm the incremental turist. Yield rates per visitr will be substantially lwer nce inter-industry effects are recgnised. Prper acknwledgement f these effects wuld require CGE mdelling f the turism expenditure assciated with each market segment. Further discussin f the TRA wrk is prvided in the full reprt.

8 STCRC Expenditure Yield Estimates Internatinal Visitrs by Origin Simple expenditure measures f yield were estimated using the Internatinal Visitr Survey (IVS) data. The STCRC Centre fr Turism Ecnmics and Plicy Research has develped measures f turism yield using data purchased frm Turism Research Australia. The cmprehensive data cntains estimates f visitr numbers, expenditure per visit, expenditure per night, expenditure patterns, fr visitrs t Australia n package turs, nt n package turs and in ttal. The data were fr the years 00/0, 00/03 and 003/0, taken separately and als averaged ver the three year perid. The data used in this reprt applies t furteen cuntries and three regins, and t eleven special interest and demgraphic markets. The expenditure data used t estimate ecnmic impacts f different visitrs includes internatinal and dmestic airfares purchased within Australia n Australian-wned airlines but des nt include any ther imputatin fr the internatinal airfare cmpnent that ges t Australian wned airlines r t freign wned airlines but spent in Australia. Since the injected amunts f expenditure depend upn ttal numbers f turists by rigin, their daily expenditure, and their length f stay, it is mst infrmative t cnsider expenditure per night in assciatin with duratin f stay. We display this infrmatin in matrix frm in Figure. Figure : Matrix fr Ttal Turism, Average 00/00-003/ sing Expenditure per day ($AU) nz jap mal usa twn hk tha kr can Other Wrld uk ind chn ger Other Eurpe 70 Other Asia Duratin f stay (night) Figure illustrates the fllwing trends: Five markets (Hng Kng, Krea, Thailand, Indnesia and China) are in the Nrth East Quadrant. Daily visitr expenditure is in excess f $9. Five markets cmprise the Nrth West Quadrant. These are: Japan, Singapre, Malaysia, Taiwan and USA and visitrs frm these markets spend mre per day than the average turist but spend less time in Australia. Six markets cmprise the Suth East Quadrant. These are Canada, UK, Germany, ther Eurpe, ther Asia and ther Wrld. Turists frm these markets spend less than $9 per day but tend t stay in Australia fr lnger than 7. days. One market, New Zealand, ccupies the Suth West Quadrant. New Zealanders tend t stay fr a shrter time in Australia than the representative turist and spend less per day.

9 Special Niche Markets The reprt ges n t examine the expenditure f six niche markets which have expenditure greater than the average turist daily expenditure f $9. These are Japanese Hneymners, Cnventin visitrs, Malaysian repeaters and Hng Kng and Malaysian first timers. These results are displayed in Figure. Figure : Matrix fr Selected Niche markets, average 00/00-003/00 00 japanese hneymners cnventin business Expenditure per day ($AU) hng kng first timers first timers nz mature (+55) mature (+55) repeaters canadian mature (+55) uk repeaters backpacker LOS Figure indicates that nly ne market, namely, Malaysian repeaters lies in the high perfrmance Nrth East Quadrant This is the nly market f thse selected which has expenditure per night abve the average ($9) and a duratin f stay abve the average (7. nights). Five markets (Cnventins, Business, Japanese Hneymners, Hng Kng and Malaysian first timers) are in the Nrth West Quadrant. Only tw markets (UK repeaters and Backpackers) ccupy the Suth East Quadrant. Three mature (ver 55) markets (NZ, Malaysia and Canada) are lcated in the lw yield Suth West Quadrant.

10 STCRC Ecnmy Wide Yield Measures Internatinal Visitrs by Origin The STCRC has develped measures f ecnmy wide yield. Fr this purpse, the team has used a CGE mdel called MRNSW develped by the STCRC Centre fr Turism Ecnmics and Plicy Research (Ray Spurr, Larry Dwyer, Peter Frsyth & Thiep Van H). MRNSW is an adaptatin f the standard Mnash Multi-reginal Frecasting (MMRF) mdel which is ne f a number f CGE mdels that have been widely used in Australia (Dixn & Parmenter 99). The basic structure f the MR mdel (excluding the turism industries created by Madden and Thapa) is an adaptatin f the standard MONASH Multi-reginal Frecasting (MMRF) mdel. Additinal useful equatins were added int the standard MMRF versin f the MR mdel including the develpment f cnsistent equatins fr explaining the percentage deviatins in grss state prducts (GSP) frm bth incme and expenditure sides f natinal accunts. Table presents the results f the CGE mdel simulatins using IVS data, with n adjustment fr the internatinal airfare cmpnent f visitr expenditure verseas but injected int Australia. As in the simple expenditure yield measures abve, the annual expenditure data fed int the mdel were the average fr the three year perid. The tables cntain several yield measures, estimated as utcmes f applying the CGE mdel t the expenditure data. Table : Ecnmic Impacts f Ttal Cuntry Expenditure (annual average perid 00/0-003/0, unadjusted data) Origin GVA per visitr ($) value added per visitr night ($) GOS per visitr ($) GOS/ visitr night ($) GOS/ expenditure (%) benefits per visitr ($) benefit per visitr night ($) Number f jbs per $m spend Canada China Germany Hng Kng Indnesia Japan Krea Malaysia NZ Singapre Taiwan Thailand UK USA Other Asia Other Eurpe Other Wrld Ttal Surce: STCRC Centre fr Turism Ecnmics and Plicy Research

11 The reprt prvides a mre detailed discussin f emplyment generated thrugh inbund turism, the cntributin t Value Added, the Grss Operating Surplus, the Net Benefits f inbund turism and examines the cnsistency f the rankings f specific markets with regard t yield but based n ecnmy wide yield. These rankings and discussin f the rankings are prvided in Table 3. Table 3: Rankings f Origins, selected yield measures Expenditure per Visitr Day Value added per Visitr Day GOS per Visitr Day Net Benefits per Visitr Day Emplyment per $ millin High Yield Markets Singapre Hng Kng Malaysia Japan USA Indnesia Thailand Taiwan Krea China Singapre Hng Kng Malaysia Japan, USA Indnesia Taiwan Thailand Krea China Singapre NZ Japan Hng Kng USA Germany Canada UK Other Eurpe 3 5 Singapre Japan USA NZ Hng Kng NZ Thailand Other Asia Canada Indnesia Singapre USA China UK Lw Yield Markets NZ Germany Other Eurpe Canada Other wrld UK Other Asia NZ Germany Other Eurpe Canada Other wrld UK Other Asia Taiwan Other wrld Krea Malaysia China Indnesia Thailand Other Asia Malaysia Germany Taiwan Canada Other Eurpe UK Krea Indnesia Other wrld China Thailand Other Asia Taiwan Other wrld Malaysia Krea Germany Other Eurpe Japan Hng Kng High yield market = abve average; lw yield market = belw average Table 3 ranks cuntry rigin markets frm best t wrst perfrmance n five different yield measures. The different measures f yield d nt prvide generally cnsistent rankings fr the rigin markets. Only ne rigin, Singapre has abve average yield perfrmance n all f the measures. High expenditure per visitr day markets - Singapre, Hng Kng, Japan, and USA, generate high GVA, GOS and benefits per day. Hng Kng, hwever, the secnd greatest daily spending market is the lwest emplyment generatr f all f the rigin markets. Malaysia, the third highest expenditure per day rigin, while generating abve average daily GVA, generates belw average GOS per visitr day, Benefits per visitr day and emplyment generated per $ millin expenditure. Several markets with belw average daily expenditure, such as New Zealand, Other Asia, Canada and UK, generate abve average emplyment per dllar spent. New Zealand als generates relatively high net benefits per day.

12 Internatinal Visitrs by Niche Market Again, this reprt prvides a discussin f emplyment generated thrugh inbund turism, the cntributin t Value Added, the Grss Operating Surplus, the Net Benefits f inbund turism and examines the cnsistency f the rankings f specific markets with regard t yield, this time based n niche markets. Table cntains several yield measures, estimated as utcmes f applying the CGE mdel t the expenditure data. Table : Ecnmic Impacts f Selected Niche Market Expenditure (annual average perid 00/0-003/0, unadjusted data) Niche GVA per visitr $ GVA per visitr night ($) GOS per visitr GOS/ visitr night ($) GOS/ expenditure (%) benefit per visitr benefit/ visitr night ($) Number f jbs/ $millin expenditure Backpackers Business Canadian mature (+55) Cnventin Hng Kng first timers Japanese hneymners Malaysia first timers Malaysian mature (+55) Malaysian repeaters NZ mature (+55) UK repeaters Surce: STCRC Centre fr Turism Ecnmics and Plicy Research

13 The rankings are prvided in Table 5. Table 5: Rankings f Niche markets, Selected Yield Measures Expenditure per Visitr Day GVA per Visitr Day GOS per Visitr Day Net Benefits per Visitr Day Emplyment per $ millin High Yield Markets 3 5 Japanese hneymners Cnventin Business Mal repeater* HK first timer Mal first timer 3 5 Japanese hneymners Cnventin Business Mal repeaters HK first timer Mal first timer 3 5 Japanese hneymners Business Cnventin Can +55 NZ Japanese hneymners Business Cnventin Can +55 Mal repeater HK first timer 3 5 Business Cnventin NZ +55 Can +55 UK repeater Lw Yield Markets 7 Can +55 NZ +55 UK repeater Backpacker Mal Can +55 NZ +55 UK repeater Backpackers Mal HK first timer Backpackers Mal +55 Mal repeater Mal repeater 7 9 NZ+55 UK repeaters Mal first timers Mal +55 Backpackers 7 9 Mal first timer Backpacker Mal repeater HK first timer Mal +55 Japanese hneymners High yield market = abve average; lw yield market = belw average; Mal = Malaysian The reprt emphasises that the different measures f yield d nt prvide generally cnsistent rankings fr the rigin markets. High expenditure per visitr day markets - Japanese Hneymners, Cnventin and Business visitrs, generate high GVA, GOS and benefits per day. Only tw niche markets, Cnventins and Business have abve average yield perfrmance n all f the measures. Japanese Hneymners have the highest yield n fur measures but generate the lwest emplyment per dllar f expenditure. Three ther high spend markets- Malaysian repeaters, Hng Kng first timers and Malaysian first timers, generate belw average emplyment per expenditure dllar. On the ther hand, tw relatively lw spend markets Canadian and New Zealand Matures, generate abve average GOS and Benefits per visitr night and als abve average emplyment. Frm the peratr viewpint, markets such as Canadian and Malaysian Matures, which ffer abve average daily GOS will be preferred ver ther markets, such as Malaysian and Hng Kng first timers which prvide abve average spend and abve average GVA t the wider ecnmy. Thus far, the yield measures that have been develped have been quantifiable in dllar terms. We nw turn t develp measures that recgnise the relevance f a wider cncept f yield that incrprates scial and envirnmental dimensins. 3

14 A Framewrk fr Analysing the Scial and Envirnmental Impacts f Turism The develpment f measures f scial and envirnmental yield requires cnsideratin nt nly f the activities and behaviur f the turists but als the cntext in which such activities ccur. In develping a framewrk fr the scial and envirnmental impacts f turism, a number f key characteristics were examined. The impacts that particular grups f turists have n their hsts vary with fur sets f variables:. The characteristics f the turists. The characteristics f the turism activity 3. The characteristics f the destinatin. Destinatin management practices. As illustrated by Figure 3, each f these cmpnents relate nt nly t each ther but als directly cntribute t the range f impacts identified by the study. Figure 3: A Framewrk fr Determining the Impacts f Turism n a Cmmunity Type f Turist Types f Activities Impacts ecnmic scial envirnmental Types f Destinatin Destinatin Management

15 In examining the scial impacts f turism as a measure f yield, a number f elements are cnsidered within each f the cmpnents f the framewrk as shwn in Figure 3. These are: The characteristics f the turists: Turist mtivatins values and attitudes Number f Turists, Cmpsitin f Travel Party and Length f Stay Relative Ecnmic Status f Residents and Turists The characteristics f the turism activity Infrastructure Demnstratin Effect Activities Relating t Lcal Culture Level f Interactin Seasnality The characteristics f the destinatin Envirnmental and Heritage Features f the Destinatin Scial and Cultural Characteristics f Destinatin Stage f Ecnmic Develpment f Destinatin Carrying Capacity f Destinatin Type f Turism Prducts at Destinatin Destinatin Management Practices. 5

16 Incrprating Scial Impacts int a Measure f Turism Yield Knwledge underpinning a ptential measure f scial yield lags behind ecnmic and envirnmental measures because scial impact assessment techniques have nly recently attracted attentin and are generally less develped at this stage. A technique has been devised t assess the scial cmpnent f turism yield invlving a series f classificatins using the framewrk develped and presented abve. Hwever, at this stage the prpsed methd is untested and further research is required t ascertain its ease f use in practical applicatin. The technique invlves five steps:. Prfile destinatins based n their characteristics.. Identify the characteristics which define the key market segments f turists attracted t each destinatin. 3. Identify the types f activities that each market segment undertakes.. Identify the scial impacts assciated with varius activities and travel behaviurs. 5. Cnsider the management practices f each destinatin and hw effective they are in prmting psitive impacts and amelirating negative impacts assciated with the turists and their activities. In the first step the rbustness f the destinatin is evaluated using a checklist f variables. Then, the key market segments fr each destinatin need t be identified frm secndary data surces such as the Internatinal Visitr Survey. These segments can then be analysed in terms f the types f travel behaviurs they undertake, again such data are already cllected in the IVS.The next step invlves linking specific activities t scial impacts. Finally, destinatin management practices need t be taken int accunt as gd management can be effective in amelirating negative scial impact and prmting scial benefits. Ultimately it may be pssible t identify a dllar value fr the scial yield f varius market segments, but substantial research is required in advance f that utcme. Incrprating Envirnmental Impacts int a Measure f Turism Yield T develp envirnmental measures f yield, a hybrid apprach is emplyed, cmbining input-utput analysis with an n-site audit fr turist accmmdatin. The calculatin f the envirnmental impacts f turists prceeded in tw steps, i.e. direct and indirect impacts f turists. In this apprach, the direct (n-site) requirements f different turists are assessed, while all remaining higher-rder requirements (fr materials extractin, manufacturing, and services) are cvered by input-utput analysis. Estimates f the direct impacts f turist activity n primary energy and water cnsumptin, greenhuse gas emissins and land disturbance were made fr fur types f accmmdatins, i.e. vacatin htels, mtels, bed and breakfast establishments and hstels, by using tw data surces:. Energy and water demand fr different types f accmmdatin depending n the latitude; and. IVS data n visitr numbers and expenditure. The reprt estimates the direct impacts f turist activity n primary energy and water cnsumptin, greenhuse gas emissins and land disturbance. First, primary energy cnsumptin, water usage, greenhuse gas emissins as well as land use and disturbance multipliers (M) were determined using the 99/95 Australian input-utput tables, Australian energy cnsumptin and prductin frm the Australian Bureau f Agricultural and Resurce Ecnmics, Australian Water Accunts, the Natinal Greenhuse Gas Inventry, and land use and cnditin data frm varius surces.

17 Secnd, the expenditure data f turists was re-classified and cmpressed int the Australian input-utput prduct classificatin, yielding a cmmdity input vectr y. Several items turned ut t be difficult t classify accrding t the Australian input-utput prduct classificatin. Indirect indicatr inventries (M_y,) were then btained by multiplying each item in the cmpressed accunt with its respective multiplier. The results are presented in three ways, i.e. envirnmental intensity per trip, per dllar spent, and per visitr night. Figure (a - d) helps t identify preferred markets accrding t whether ecnmic r envirnmental impacts f turists are emphasised. Frm an ecnmic viewpint the preferred market segments will be thse that generate higher expenditure per night. Frm an envirnmental viewpint, the preferred markets are thse that invlve less energy and water use, lwer greenhuse gas emissins and have a lwer eclgical ftprint per night. Thus, in the matrices f Figure (a - d) the preferred markets frm an ecnmic viewpint lie t the right f the vertical axis, while frm an envirnmental perspective the preferred markets lie belw average f each indicatr. Therefre, market segments which ccupy the Suth East quadrant are preferred frm bth perspectives while thse that ccupy the Nrth West quadrant are the least preferred n bth perspectives. Figure : Envirnmental Indicatr Results Per Visitr Night: (a) Energy Use; (b) Water Use; (c) Greenhuse Gas Emissins; (d) Eclgical Ftprint (a) (b).5 japanese hneymners 0 japanese hneymners Energy use (MJ/night) german hlidayers canadian mature(+55) nz mature (+55) mature(+55) backpackers first timers uk repeaters business traveller cnventin hk first timers repeaters Water use (ML/night) nz mature (+55) mature(+55) canadian mature(+55) backpackers uk repeaters german hlidayers cnventin business traveller hk first timers repeaters first timers Greenhuse gas emissin (kg CO/night) (c) nz mature (+55) mature(+55) canadian mature(+55) backpackers uk repeaters Expenditure per night (A$) german hlidayers business traveller repeaters first timers japanese hneymners cnventin hk first timers Expenditure per night (A$) (d) Eclgical ftprint (ha) Expenditure per night (A$) canadian mature(+55) nz mature (+55) mature(+55) backpackers uk repeaters german hlidayers first timers japanese hneymners cnventin business traveller hk first timers repeaters Expenditure per night (A$) 7

18 The measures that have been develped in the reprt enable destinatin managers t better understand the tradeffs between the ecnmic, and envirnmental bjectives f turism plicy.sustainable Yield Sustainable yield can be studied frm the perspective f the business peratr r the destinatin manager. Frm a crprate perspective, sustainable turism peratins result frm prducing a psitive and balanced return t all three f these surces f capital, the ecnmic, scial and envirnmental (the triple bttm line). The TBL apprach is cnsistent with, and can frm the basis fr, the cncept f Yield as sustainable return t the firm. Frm a destinatin management perspective, each turism market segment is ptentially assciated with ecnmic, scial and envirnmental csts as a result f the mix f services utilised during their stay. These csts, r ftprints, vary acrss market segments depending n the mix f services utilised. The measures that have been develped enable destinatin managers t better understand the trade-ffs between the ecnmic, scial and envirnmental bjectives f turism plicy. Further research may include: Research n measuring the scial and envirnmental csts and benefits f turism n a segment-bysegment basis. Research n the way turism prduces varius envirnmental, scial and cultural benefits as ppsed t merely csts. The ecnmic, scial and envirnmental effects f each visitr depend upn their expenditure, the characteristics f turists, characteristics f the destinatin, characteristics f turist activity and destinatin management practices. Further research is needed n the factrs underpinning sustainable turism and their relative influence. The difficulties in measuring the TBL need mre detailed analysis. Further research is required t help t develp standardised, cnsistent, measurement and reprting methds f turism yield which are cnsistent with the TBL apprach. Distributinal issues need t be further explred as t hw they can be incrprated int an peratinal cncept f sustainable yield. Research is required as t hw turism yield can be usefully incrprated int the sustainability paradigm. In particular, little is knwn abut the trade-ffs between ecnmic, scial and envirnmental csts and benefits, and the implicatins f this fr measuring sustainable yield. There is a view that sustainable develpment shuld imply direct gains r imprvements in all aspects, nt just the financial/ecnmic sphere, and that such gains shuld be an imprtant aspect f hw turism yield is measured. Research is required t clarify and peratinalise the ntin f sustainable yield as generating psitive returns t sciety in the three dimensins. Sustainable Yield Sustainable yield can be studied frm the perspective f the business peratr r the destinatin manager. Frm a crprate perspective, sustainable turism peratins result frm prducing a psitive and balanced return t all three f these surces f capital, the ecnmic, scial and envirnmental (the triple bttm line). The TBL apprach is cnsistent with, and can frm the basis fr, the cncept f Yield as sustainable return t the firm. Frm a destinatin management perspective, each turism market segment is ptentially assciated with ecnmic, scial and envirnmental csts as a result f the mix f services utilised during their stay. These csts, r ftprints, vary acrss market segments depending n the mix f services utilised. The measures that have been develped enable

19 destinatin managers t better understand the trade-ffs between the ecnmic, scial and envirnmental bjectives f turism plicy. Further research may include: Research n measuring the scial and envirnmental csts and benefits f turism n a segment-bysegment basis. Research n the way turism prduces varius envirnmental, scial and cultural benefits as ppsed t merely csts. The ecnmic, scial and envirnmental effects f each visitr depend upn their expenditure, the characteristics f turists, characteristics f the destinatin, characteristics f turist activity and destinatin management practices. Further research is needed n the factrs underpinning sustainable turism and their relative influence. The difficulties in measuring the TBL need mre detailed analysis. Further research is required t help t develp standardised, cnsistent, measurement and reprting methds f turism yield which are cnsistent with the TBL apprach. Distributinal issues need t be further explred as t hw they can be incrprated int an peratinal cncept f sustainable yield. Research is required as t hw turism yield can be usefully incrprated int the sustainability paradigm. In particular, little is knwn abut the trade-ffs between ecnmic, scial and envirnmental csts and benefits, and the implicatins f this fr measuring sustainable yield. There is a view that sustainable develpment shuld imply direct gains r imprvements in all aspects, nt just the financial/ecnmic sphere, and that such gains shuld be an imprtant aspect f hw turism yield is measured. Research is required t clarify and peratinalise the ntin f sustainable yield as generating psitive returns t sciety in the three dimensins. 9

20 Cncepts f Turism Yield and Their Measurement e x e c u t i v e s u m m a r y The reprt develps tls fr measuring and enhancing the yield frm turism at the business, reginal and natinal level. It clarifies the different cncepts f turism yield. Different stakehlders (peratrs, gvernments, cmmunity, researchers etc.) mean different things by yield and this presents a barrier t cmmunicatin and plicy discussin. Each f these cncepts is defined and their relevance t firms and destinatin managers assessed. The reprt develps peratinal measures f yield at the level f the firm and reginal, state and natinal destinatin management levels. It als develps ways t measure the yield frm different types f turists. With the increasing sphisticatin f turism data sets, such as the Turism Satellite Accunt (TSA) and Cmputable General Equilibrium (CGE) mdels, it is nw feasible t develp new and mre useful measures f turism yield. The results can imprve the capacity fr management decisin making by turism stakehlders t prmte high yield sustainable turism that enhances cmpetitiveness in the turism industry. The full reprt, Cncepts f Turism Yield and Their Measurement, is available t purchase thrugh the STCRC s nline bkshp [ Alternatively please cmplete the nline rder frm and send t the STCRC. CRC fr Sustainable Turism Pty Ltd ABN PMB 50 GCMC Qld 97 Australia Telephne Facsimile inf@crcturism.cm.au