What is the impact of hotels on local economic development? Applying value chain analysis to individual businesses

Abstract

The impact of mainstream tourist hotels on destination economies is clearly an important question for public policy-makers wishing to develop robust tourism policy. We adapt the methodology of value chain analysis to measure the local economic impact of a large, single tourism enterprise, to show how to generate commercially realistic data using the example of an analysis of a 1000 room all-inclusive resort in southern Turkey in partnership with TUI UK and Ireland. The data break down package revenues according to their beneficiaries and identifies areas for improvement. We further report and reflect on a 6-month evaluation of a tour operator-hotel partnership to deliver on a set of positive recommendations arising from the date to improve future impact.