The economic contribution of tourism in mozambique: Insights from a social accounting matrix

Abstract

How much tourism contributes to the economies of developing countries is controversial and often not measured rigorously. Focusing on Mozambique, this study presents a simple accounting tool - a tourist-focused Social Accounting Matrix - which makes it possible to estimate the economic contribution of various tourism sub-types. Multiplier analysis is applied to evaluate the strength of backward linkages from tourism to the domestic economy. The results show the sector is moderate in size but has the potential to contribute significantly to aggregate economic development. However, potential weaknesses are already evident and careful attention must be paid to the full tourism value chain. © 2010 Development Bank of Southern Africa.