Tourism Multiplier and Income Distribution: Empirical Evidences from Hotel-Level Data in Thailand
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Abstract
Tourism industry shows an important role for generating income, creating jobs, and linking to other related sectors. This research article, therefore, aims explaining impacts of tourism on income generating and income distribution in Thailand through the tourism multiplier mechanism. Using national-representative survey of hotel-level data in Thailand, our analysis indicates that the relationship between tourism multipliers and hotel earnings is found to be negative. This reflects that high-profit hotels may have a low income distribution. In addition, large hotels, having foreign investment, form of partnership, and public company are found to have negative impact on income distribution to labor. On the other hand, smaller hotels that provide Thai massage is found to be positively affect to increase distribution of income to the hotel’s workforces. Our results, therefore, support needs from government to promote capacity building of small and local hotel by creating linkages to community business in order to ensure that laborers in hotel industry will be able to reap more benefits from tourism sector.
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