Economic Contribution of the Tourism Accommodation Sector ... · Document Name: TAA Tourism Accomm...

Economic Contribution of the

Tourism Accommodation Sector

in Australia

Tourism Accommodation Australia

Final Report

March, 2013

Economic Contribution to the Tourism Accommodation Sector in Australia Final Report

i

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Job ID: 16636

Job Name: Economic Contribution of the Tourism Accommodation Sector

Client: Tourism Accommodation Australia

Client Contact: Rodger Powell

Project Manager: Kieron Lacey

Email: [email protected]

Telephone: (07) 3831 0577

Document Name: TAA Tourism Accomm Economic Impact Final Report (b) - AEC Group

Last Saved: 12/3/2013 11:49 AM

Version Date Reviewed Approved

Draft v1.0 16/10/2012 KL SS

Draft v2.0 25/10/2012 KL

Draft v3.0 31/10/2012 KL SS

Draft v4.0 1/11/2012 KL SS

Draft v5.0 2/11/2012 KL SS

Final Report 12/11/2012 KL SS

Final Report (b) 12/3/2013 KL SS

Disclaimer:

Whilst all care and diligence have been exercised in the preparation of this report, AEC Group Limited does not warrant the accuracy of the information contained within and accepts no liability for any loss or damage that may be suffered as a result of reliance on this information, whether or not there has been any error, omission or negligence on the part of AEC Group Limited or their employees. Any forecasts or projections used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given that a particular set of results will in fact be achieved.

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Executive Summary

The tourism accommodation sector is comprised of establishments which provide predominantly short-term non-residential accommodation (i.e., accommodation which is not leased, and which is provided to guests who would generally stay for periods of less than two months). These establishments include:

Licensed hotels and resorts.

Motels, private hotels and guest houses.

Serviced apartments.

Caravan parks.

Holiday flats, units and houses of letting entities.

Visitor hostels.

Tourism accommodation represents only a sub-set of activity generated by the

accommodation industry as a whole, as it excludes expenditure and activity generated by long term guests staying at accommodation establishments.

Tourism accommodation is a large contributor to the Australian economy

Australia recorded a Gross Domestic Product (GDP) of $1.4 trillion (including $1.3 trillion in gross value added activity) during the 2010-11 financial year, and recorded over 11.3 million people employed. As tourism plays a part in almost every sector of the Australian economy, its contribution to GDP and employment is far reaching and cannot be

overlooked.

Table ES.1 provides a summary of the contribution of Australia’s tourism accommodation sector to the national economy. Including direct and flow-on impacts, the tourism accommodation sector is estimated to have supported $18.0 billion in gross product in 2010-11. This accounts for 19.7% of total (direct and flow-on) gross product supported by the tourism industry as a whole, and 1.3% of total gross product generated by the

Australian economy for the year.

The tourism accommodation sector also supported some 213,862 jobs in 2010-11 (96,671 jobs through direct impacts and 117,191 jobs through flow-on impacts). This accounts for 23.1% of jobs supported by the tourism industry as a whole and 1.9% of total jobs supported by the Australian economy. Jobs supported by the tourism accommodation sector contributed over $9.2 billion to Australian household incomes.

Table ES.1. Estimated Direct and Flow-On Contribution of the Tourism Accommodation Sector to the Australian Economy, 2010-11

Tourism Accommodation Sector Component Gross Product

($M)

Gross Value

Add ($M)

Household Incomes

($M)

Employment (Persons)

Direct Contribution $6,164.6 $5,612.0 $3,356.8 96,671

Flow-On Contribution $11,880.1 $11,016.2 $5,801.5 117,191

TOTAL CONTRIBUTION TO AUSTRALIA $18,044.6 $16,628.2 $9,158.3 213,862

Source: ABS (2011c), AECgroup

Tourism accommodation contributes to the Australian

Government’s tax revenue

The tourism accommodation sector is estimated to have contributed $758.8 million in Australian Government tax revenue during 2010-11, equating to 14 cents/dollar of gross

value add directly produced by the sector. The tourism accommodation sector’s average Australian Government tax contribution per dollar of gross value add is above the average paid by Australian industries (12 cents/dollar).


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Table of Contents

DOCUMENT CONTROL .......................................................................................... I

EXECUTIVE SUMMARY ........................................................................................ II

TABLE OF CONTENTS........................................................................................ III

1. INTRODUCTION .......................................................................................... 1

1.1 BACKGROUND .................................................................................................. 1

1.2 DEFINITION OF THE TOURISM ACCOMMODATION SECTOR ................................................. 1

1.3 GEOGRAPHIC SCOPE .......................................................................................... 1

1.4 METHODOLOGY ................................................................................................ 1

2. ECONOMIC CONTRIBUTION ASSESSMENT ................................................... 3

2.1 OVERVIEW OF THE AUSTRALIAN ECONOMY ................................................................. 3

2.2 OVERVIEW OF THE TOURISM INDUSTRY ..................................................................... 3

2.3 CONTRIBUTION OF THE TOURISM ACCOMMODATION SECTOR ............................................. 4

2.3.1 CONTRIBUTION ASSESSMENT ...................................................................... 4

2.3.2 DIRECT & FLOW-ON CONTRIBUTION BY INDUSTRY .............................................. 5

2.4 CONTRIBUTION OF TOURISM ACCOMMODATION TO THE TOURISM INDUSTRY ........................... 6

2.5 KEY FINDINGS ................................................................................................. 7

3. AUSTRALIAN TAXATION CONTRIBUTION .................................................... 8

3.1 CONTRIBUTION TO AUSTRALIAN GOVERNMENT TAXES .................................................... 8

REFERENCES ....................................................................................................... 9

APPENDIX A: CONTRIBUTION ASSESSMENT METHODOLOGY ............................ 10

APPENDIX B: TOURISM RESEARCH AUSTRALIA ESTIMATES OF TOURISM

ECONOMIC CONTRIBUTION ...................................................................... 14

APPENDIX C: ALLOCATION OF AUSTRALIAN GOVERNMENT TAXES ................... 16

APPENDIX D: DIRECT CONTRIBUTION OF AUSTRALIA’S TOURISM INDUSTRY .. 19

APPENDIX E: CONTRIBUTION OF TOURISM ACCOMMODATION ........................ 21


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1. Introduction

1.1 Background

Tourism Accommodation Australia (TAA) commissioned AEC Group Limited (AECgroup) to

undertake an assessment of the economic contribution of Australia’s tourism accommodation sector. The sector consists of organisations, establishments and individuals involved in operating accommodation for visitors travelling throughout Australia.

1.2 Definition of the Tourism Accommodation Sector

The tourism accommodation sector is comprised of establishments which provide predominantly short-term non-residential accommodation (i.e., accommodation which is not leased, and which is provided to guests who would generally stay for periods of less than two months). These establishments include:

Licensed hotels and resorts.

Motels, private hotels and guest houses.

Serviced apartments.

Caravan parks.

Holiday flats, units and houses of letting entities.

Visitor hostels.

The tourism accommodation sector distinguishes between visitors and long term guests within accommodation establishments. That is, the tourism accommodation sector

excludes expenditure and activity generated by long term guests staying at accommodation establishments, and as such represents only a sub-set of activity generated by the accommodation industry as a whole.

In order to determine the size of the tourism accommodation sector (as a proportion of the overall accommodation sector), the value of tourism spend on accommodation from

the tourism satellite accounts (ABS, 2011c) was used. The tourism satellite accounts indicate the tourism component of the accommodation sector directly contributed 87.6%

of the total accommodation sector’s activity.

1.3 Geographic Scope

The impacts for the tourism accommodation sector have been assessed in the context of Australia, comprising of all states and territories.

1.4 Methodology

Estimates of the economic contribution of the tourism accommodation sector to the Australian economy are produced using Input-Output transaction tables and economic contribution models developed by AECgroup. Data sources used include National

Accounts (ABS 2012b), Tourism Satellite Accounts (ABS 2011c), and Australian taxation data (ATO 2012, ABS 2012c). Measures used in this report include Gross Domestic

Product (GDP), Gross Value Added (GVA) activity, employment, and household income (i.e., wages and salaries). Appendix A presents a detailed description of the methodology to estimate economic contribution.

Estimates of the economic contribution of Australia’s tourism industry as a whole have also been developed by AECgroup, following the same methodology outlined above and in

Appendix A. AECgroup’s estimates of flow-on activity supported by the tourism industry differ from those produced by Tourism Research Australia (TRA, 2012b). A comparison of AECgroup’s estimates of the economic contribution of the tourism industry and TRA’s is provided in Appendix B. The appendix also outlines the reasons why estimates used in this report differ from those produced by TRA, and rationale for adopting a different approach.


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Estimates of the taxation contribution of the tourism accommodation sector to Australian

government taxation revenues are developed based on results of the economic contribution modelling applied to taxation estimates. Appendix C presents a detailed description of the methodology to estimate taxation contribution.

All estimates are presented in nominal terms (i.e., current prices in the year received), unless otherwise stated.


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2. Economic Contribution Assessment

2.1 Overview of the Australian Economy

Australia recorded a Gross Domestic Product (GDP) of $1.4 trillion (including $1.3 trillion

in gross value added activity) during the 2010-11 financial year, and recorded just over 11.4 million people employed. Table 2.1 below provides a summary of GDP and employment by industry within Australia for the 2010-11 financial year.

Table 2.1. Gross Domestic Product and Employment (2010-11)

Industry Gross Domestic Product (GDP)

Employment by Industry

$M % No. %

Agriculture, forestry and fishing $35,916 2.8% 351,430 3.1%

Mining $123,306 9.5% 205,326 1.8%

Manufacturing $108,305 8.3% 991,971 8.7%

Electricity, gas, water and waste services $30,883 2.4% 151,252 1.3%

Construction $99,866 7.7% 1,033,930 9.1%

Wholesale trade $56,646 4.3% 412,454 3.6%

Retail trade $61,032 4.7% 1,234,381 10.9%

Accommodation and food services $31,520 2.4% 776,024 6.8%

Transport, postal and warehousing $73,803 5.7% 583,390 5.1%

Information media and telecommunications $40,749 3.1% 215,435 1.9%

Financial and insurance services $137,619 10.6% 406,073 3.6%

Rental, hiring and real estate services $29,800 2.3% 206,223 1.8%

Professional, scientific and technical services $86,574 6.6% 861,010 7.6%

Administrative and support services $32,419 2.5% 400,710 3.5%

Public administration and safety $68,222 5.2% 705,404 6.2%

Education and training $61,261 4.7% 866,891 7.6%

Health care and social assistance $80,232 6.2% 1,291,800 11.4%

Arts and recreation services $11,288 0.9% 201,870 1.8%

Other services $23,981 1.8% 458,804 4.0%

Ownership of dwellings $109,951 8.4% n/a n/a

Gross Sector Value Add (Total) $1,303,372 100.0% - -

Taxes Less Subsidies $97,795 - - -

Gross Domestic Product $1,401,167 - 11,354,378 100.0%

Sources: ABS (2011a), ABS (2012a), AECgroup

2.2 Overview of the Tourism Industry

Australia’s tourism industry directly contributed $34.6 billion to GDP in 2010-11 (with $31.5 billion through direct GVA). The leading contributor to Australia’s tourism industry in 2010-11 was transport, postal and warehousing, contributing $6.8 billion in GVA (or 21.5% of total tourism GVA) followed by tourism accommodation ($5.6 billion in GVA or 17.8% of Australia’s tourism sector) and food services ($4.8 billion in GVA or 15.4% of

Australia’s tourism sector). Appendix D contains a breakdown of the contribution to the

tourism industry during 2010-11.


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Figure 2.1. Contribution to the Tourism Industry’s Gross Value Add

Note: The tourism accommodation sector (and accommodation sector) is a service based sector, providing short term non-leased accommodation. The ownership of dwellings sector, by comparison, provides non-serviced accommodation options on a lease/ rental basis (e.g., private property owners that rent dwellings) and are therefore not included in the accommodation sector.

Source: ABS (2011c).

2.3 Contribution of the Tourism Accommodation Sector

2.3.1 Contribution Assessment

The economic contribution of the tourism accommodation sector to the Australian economy is estimated across four key measures:

Gross Product: Refers to the value of all outputs of an industry including taxes/ subsidies on its final products after deducting the cost of goods and services inputs in the production process. Gross State Product (GSP) is the measure of a State’s total

gross production.

Gross Value Add: Refers to the value of all outputs of an industry excluding taxes/ subsidies on its final products after deducting the cost of goods and services inputs in the production process.

Household Incomes: Measures the level of wages and salaries paid to employees of each industry.

Employment: Refers to the part-time and full-time employment positions supported by an industry, both directly and indirectly through flow-on activity. Employment has been estimated in terms of both total persons (full time and part time people

employed) as well as in terms of full time equivalent (FTE) positions. Persons employed are presented in this section, with FTEs outlined in Appendix E.

In 2010-11, Australia’s tourism accommodation sector was estimated to have directly generated approximately $6.2 billion in gross product. An additional $11.9 billion is

estimated to have been supported by the tourism accommodation sector through flow-on activities. The direct contribution for Australia’s tourism accommodation sector accounted for 0.4% of Australia’s total gross product in 2010-11, with flow-on activities contributing an additional 0.8% of Australia’s gross product. Australia’s tourism accommodation sector’s gross value add (GVA) provided a similar contribution to Australia’s total GVA directly (0.4% of Australia’s GVA) and indirectly (0.8% of Australia’s GVA).

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

Agriculture, forestry and fishing

Mining

Manufacturing

Electricity, gas, water and waste services

Construction

Wholesale trade

Public administration and safety

Professional, scientific and technical services

Financial and insurance services

Other services

Information media and telecommunications

Health care and social assistance

Rental, hiring and real estate services

Arts and recreation services

Administrative and support services

Education and training

Ownership of dwellings

Retail trade

Food services

Tourism accommodation

Transport, postal and warehousing

Direct Tourism GVA ($M)


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Australia’s tourism accommodation sector is estimated to directly support 96,671 jobs,

which is equivalent to 0.8% of Australia’s total employment. Australia’s tourism accommodation sector is estimated to support a further 117,191 jobs through flow-on impacts. The Australian tourism accommodation sector, through direct and flow-on

impacts supports a total of 213,862 jobs, 1.9% of Australia’s total employment during 2010-11.

Total household incomes associated with Australia’s tourism accommodation sector are estimated to be 1.5% of Australia’s total household income during 2010-11 (approximately $9.2 billion).

A full breakdown of the direct and flow-on impacts of Australia’s tourism accommodation sector can be found in Appendix E.

Figure 2.2. Direct and Indirect Contribution of Tourism Accommodation Gross Product and Employment to Total Tourism Accommodation Impact

Sources: ABS (2011c), AECgroup

2.3.2 Direct & Flow-On Contribution by Industry

Table 2.2 outlines the tourism accommodation sector’s contribution to the Australian economy by industry. In addition to the direct contribution of $6.2 billion in gross product, flow-on activity generated by the tourism accommodation sector supports more than $1.0 billion in gross product in the sectors of financial and insurance services ($1.6 billion), manufacturing ($1.3 billion) and ownership of dwellings1 ($1.3 billion).

Direct employment supported by Australia’s tourism accommodation was estimated at 96,671 jobs during 2010-11. The industries which received the largest employment through flow-on activities as a result of the tourism accommodation sector were retail trade (15,269 jobs), manufacturing (14,703 jobs) and administrative and support services (11,496 jobs).

1 Ownership of dwellings consists of landlords and owner-occupiers of dwellings. Owner-occupiers are regarded as operating a business that generates a gross operating surplus. The imputation of a rent to owner-occupied

dwellings enables the services provided by dwellings to their owner-occupiers to be treated consistently with the

marketed services provided by rented dwellings to their tenants. Owner-occupiers are regarded as receiving rents

(from themselves as consumers), paying expenses, and making a net contribution to the value of production which

accrues to them as owners (ABS (2007). This industry is included as it is a recognised sector of the economy and

represents the payments for housing supported indirectly by the tourism accommodation sector through household

incomes and expenditures.

Direct

Contribution,

0.4% of

Australian total

GDP, $6,164.6

Flow-On Type I

Contribution,

0.4% of

Australian total

GDP, $4,980.2

Flow-On Type II

Contribution,

0.5% of

Australian total

GDP, $6,899.9

Gross Product (in $Million)

Direct

Contribution,

0.8% of

Australian total

Employment,

96,671Flow-On Type I

Contribution,

0.4% of

Australian total

Employment,

50,198

Flow-On Type II

Contribution,

0.6% of

Australian total

Employment,

66,993

Employment (in Persons)


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Table 2.2 Estimated Tourism Accommodation Contribution to the Australian Economy by Industry

Tourism Accommodation Sector Component

Gross Product ($M)

Gross Value Add ($M)

Household Incomes ($M)


Direct Contribution

Tourism Accommodation Sector $6,164.6 $5,612.0 $3,356.8 96,671

Flow-on (Type I + II)

Agriculture, forestry and fishing $621.5 $576.3 $145.5 7,609

Mining $230.7 $213.9 $27.3 256

Manufacturing $1,313.8 $1,218.3 $775.0 14,703

Electricity, gas, water and waste services $404.0 $374.7 $127.7 1,806

Construction $245.1 $227.2 $132.8 3,573

Wholesale trade $586.1 $543.5 $372.3 4,726

Retail trade $651.3 $603.9 $442.1 15,269

Accommodation and food services (a) $307.8 $285.5 $206.0 8,614

Transport, postal and warehousing $605.7 $561.7 $290.1 6,434

Information media and telecommunications $688.6 $638.5 $264.1 4,693

Financial and insurance services $1,591.2 $1,475.5 $686.3 5,229

Rental, hiring and real estate services $382.3 $354.5 $169.0 2,753

Professional, scientific and technical services $759.5 $704.2 $534.9 9,003

Administrative and support services $922.3 $855.2 $755.5 11,496

Public administration and safety $97.4 $90.4 $72.8 1,294

Education and training $324.3 $300.7 $252.9 4,817

Health care and social assistance $357.9 $331.9 $275.7 6,040

Arts and recreation services $127.9 $118.6 $72.9 2,599

Other services $310.1 $287.6 $198.3 6,275

Ownership of dwellings $1,352.5 $1,254.1 $0.0 0

Total $18,044.6 $16,628.2 $9,158.3 213,862

Notes: Totals may not sum due to rounding. (a) Only non-tourism accommodation related activity is included for this industry

classification. All tourism accommodation related activity is included in the tourism accommodation sector. Sources: ABS (2011c), AECgroup

2.4 Contribution of Tourism Accommodation to the Tourism

Industry

The tourism accommodation sector is estimated to have directly contributed 17.8% of

Australia’s total tourism industry’s gross product in 2010-11 of $34.6 billion2 (ABS, 2011c), and 20.9% of the tourism industry’s flow-on gross product of $56.9 billion. Australia’s tourism accommodation sector’s contribution to total tourism industry GVA is estimated to be similar both directly (17.8% of tourism’s GVA) and indirectly (20.9% of tourism’s GVA).

Australia’s tourism accommodation sector is estimated to have supported 23.1% of the

total employment supported by Australia’s tourism industry (21.2% of total direct and 25.0% of flow-on tourism employment) during 2010-11. The total household incomes supported from Australia’s tourism accommodation sector during 2010-11 were estimated to contribute to 21.9% of the total household incomes supported by the tourism industry (19.8% of direct and 23.3% of flow-on household incomes).

Table 2.3 present a comparison of Australia’s tourism accommodation sector to Australia’s tourism industry. It should be noted the estimates of the tourism industry’s

flow-on contribution to the Australian economy presented in this section differ from those

2 Australia’s tourism industry’s main contributor in 2010-11 was the accommodation sector, contributing $5.6

billion in GVA, with the other main contributors to the tourism sector including: air, water and other transport

($4.8 billion), other retail trade ($3.7 billion), cafes, restaurants and takeaway food services ($3.5 billion),

ownership of dwellings ($2.9 billion) and education and training ($2.4 billion). Further breakdowns of the

contributors to the Australian tourism industry can be found in Appendix D.


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produced by TRA (2012). A comparison between TRA and AECgroup’s assessments is

provided in Appendix B, as well as a description of the reasons the two estimates differ.

Table 2.3. Estimated Contribution of the Tourism Accommodation Sector to the Tourism Industry, 2010-11

Tourism Industry Component Gross Product ($M/%)

Gross Value Add ($M/%)

Household Incomes ($M/%)

Employment (Persons/%)

Australia’s Tourism Accommodation Sector


Flow-On Contribution

Production Induced (Type I) $4,980.2 $4,618.1 $2,680.0 50,198

Consumption Induced (Type II) $6,899.9 $6,398.2 $3,121.5 66,993

Total Flow-On Contribution $11,880.1 $11,016.2 $5,801.5 117,191


Australia’s Tourism Industry



Production Induced (Type I) $22,915.9 $21,249.6 $11,053.2 190,165

Consumption Induced (Type II) $33,952.9 $31,484.1 $13,853.2 279,208

Total Flow-On Contribution $56,868.9 $52,733.7 $24,906.4 469,373


Tourism Accommodation’s Contribution as a Proportion of the Overall Tourism Industry

Direct Contribution 17.8% 17.8% 19.8% 21.2%


Production Induced (Type I) 21.7% 21.7% 24.2% 26.4%

Consumption Induced (Type II) 20.3% 20.3% 22.5% 24.0%

Total Flow-On Contribution 20.9% 20.9% 23.3% 25.0%

CONTRIBUTION TO THE TOURISM INDUSTRY 19.7% 19.7% 21.9% 23.1%

Notes: Totals may not sum due to rounding. Sources: ABS (2011c), AECgroup

2.5 Key Findings

Based on the results presented in section 2.3 and 2.4, Australia’s tourism accommodation

sector is estimated to support in total:

$18.0 billion in gross product ($6.2 billion through direct impacts and $11.9 billion through flow-on impacts). This accounts for 19.7% of gross product supported by the tourism industry as a whole and 1.3% of total gross product generated by the Australian economy.

$16.6 billion in gross value add ($5.6 billion through direct impacts and $11.0 billion through flow-on impacts). This accounts for 19.7% of industry gross value added

supported by the tourism industry as a whole and 1.3% of total gross value add generated by the Australian economy.

$9.2 billion in household incomes ($3.4 billion through direct impacts and $5.8 billion through flow-on impacts). This accounts for 21.9% of household incomes supported

by the tourism industry as a whole and 1.5% of household incomes supported by the Australian economy.

213,862 jobs (96,671 jobs through direct impacts and 117,191 jobs through flow-on impacts). This accounts for 23.1% of jobs supported by the tourism industry as a whole and 1.9% of total jobs supported by the Australian economy.


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3. Australian Taxation Contribution

3.1 Contribution to Australian Government Taxes

The tourism accommodation sector is estimated to have contributed $758.8 million in

Australian Government tax revenue during 2010-11, equating to 14 cents/dollar of gross value add produced by the sector. The tourism accommodation sector contributes to 87.6% of the total accommodation sector’s Australian Government tax revenue (or 17.9% of the accommodation and food services sector’s Australian Government tax contribution).

The highest contributors of Australian Government tax revenue per dollar of GVA

produced are wholesale trade (42 cents/dollar) and manufacturing (33 cents/dollar). The tourism accommodation sector’s average Australian Government tax contribution per dollar of GVA is above the average taxes paid per dollar of GVA by Australian industries of 12 cents/dollar.

Appendix C contains a full breakdown of Australian Government tax revenue during

2010-11.

Figure 3.1. Contribution to Australian Government Taxes, Comparison of Tourism Accommodation Sector to Other Sectors of the Economy, 2010-11

Note: (a) Only non-tourism accommodation related activity is included for this industry classification. All tourism accommodation

related activity is included in the tourism accommodation sector. (b) The industry may not pay GST on goods produced; inputs which are used in the provision of goods and services may be purchased which include a GST component. As a result the industry may receive a GST refund as GST paid by the industry exceeds GST received. This may result in a negative GST contribution for the

industry. An Australian Tax Office breakdown of taxes paid by industry can be found in Appendix B. Sources: ABS (2012b), ABS (2012c), ATO (2012)

-$0.20 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50

Public administration and safety (b)

Ownership of dwellings


Health care and social assistance

Agriculture, forestry and fishing

Mining

Electricity, gas, water and waste services

Transport, postal and warehousing

Other services

Construction

Arts and recreation services

Accommodation and food services (a)

Tourism Accommodation

Information media and telecommunications

Administrative and support services

Retail trade

Professional, scientific and technical services

Rental, hiring and real estate services

Financial and insurance services

Manufacturing

Wholesale trade

Tax per $1 of GVA Contributed ($)

Av

era

ge

All In

du

strie

s


9

References

ABS (2007), Information paper: Gross State Product using the Production Approach, 2007, Cat. No. 5220.0, Australian Bureau of Statistics, Canberra

ABS (2011a). Australian National Accounts: State Accounts, 2010-11, Table 10. Expenditure, Income and Industry Components of Gross Domestic Product,

Australia, Chain volume measures and current prices. Cat. No. 5220.0, Australian Bureau of Statistics, Canberra.

Australian Bureau of Statistics (2011b). Australian National Accounts: National Income, Expenditure and Product, Sep 2011. Available from http://www.abs.gov.au/ausstats/[email protected]/mf/5206.0?OpenDocument. Last accessed 9 December, 2011).

ABS (2011c). Australian National Accounts: Tourism Satellite Account, 2010-11. Cat. No.

5249.0, Australian Bureau of Statistics, Canberra.

ABS (2011d). Australian National Accounts: National Income, Expenditure and Product,

Jun 2011. Cat. No. 5206.0, Australian Bureau of Statistics, Canberra.

ABS (2011e). Number of Employed Persons by Industry of Employment (ANZSIC 93 all 4 digit classification levels) by all Place of Work LGAs in Australia. Data provided by Information Consultancy Services, ABS, GPO Box 9817, Brisbane, QLD, 4001.

ABS (2012a). Labour Force Australia, Detailed, Quarterly. Cat. No. 6291.0, Australian Bureau of Statistics, Canberra.

ABS (2012b). Australian National Accounts: Input-Output Tables - Electronic Publication, 2008-09 Final. Cat. No. 5209.0, Australian Bureau of Statistics, Canberra.

ABS (2012c). Taxation Revenue, Australia, 2010-11. Cat. No. 5506.0, Australian Bureau of Statistics, Canberra.

ATO (2012). Taxation Statistics 2009-10. Australian Taxation Office for the

Commonwealth of Australia, Canberra.

TRA (2012a), State Tourism Satellite Accounts 2010-11, Commonwealth Government

Department of Resources, Energy and Tourism, Canberra

TRA (2012b), Tourism’s Contribution to the Australian Economy, 1997-98 to 2010-11, Department of Resources, Energy and Tourism, Canberra

West, G. (1993). Input-Output Analysis for Practitioners, Version 7.1, User’s Guide. Department of Economics, University of Queensland, Brisbane.

http://www.abs.gov.au/ausstats/[email protected]/mf/5206.0?OpenDocument


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Appendix A: Contribution Assessment Methodology

The economic contribution estimates in this report are produced using Input-Output transaction tables and models developed by AECgroup for the purposes of this

assessment, combined with data from a range of sources, including State Accounts data and various industry specific data from the ABS. The Input-Output models were used to produce estimates of the direct and flow-on contribution of Australia’s tourism sector to the Australian economy in terms of output, gross value added activity, employment and income (i.e., wages and salaries).

Overview of IO Modelling

Input-Output (IO) analysis demonstrates inter-industry relationships within an economy, depicting how the output of one industry is purchased by other industries, households, the government and external parties (i.e. exports), as well as expenditure on other factors of

production such as labour, capital and imports. IO analysis shows the direct and indirect (flow-on) effects of one industry on other industries and the general economy. As such, IO

modelling can be used to demonstrate the economic contribution of an industry on the overall economy and how much the economy relies on this industry or to examine a change in final demand of any one industry and the resultant change in activity of its supporting industries.

The economic contribution can be traced through the economic system via:

Direct impacts, which are the first round of effects from direct operational expenditure on goods and services; and

Flow-on impacts, which comprise the second and subsequent round effects of increased purchases by suppliers in response to increased sales.

These effects can be identified through the examination of five types of impacts:

Output: Refers to the gross value of goods and services transacted, including the costs of goods and services used in the development and provision of the final

product. Output typically overstates the economic impacts as it counts all goods and

services used in one stage of production as an input to later stages of production, hence counting their contribution more than once;

Value added: Refers to the value of output after deducting the cost of goods and services inputs in the production process. Value added defines the true net contribution and is subsequently the preferred measure for assessing economic impacts;

Gross product: Gross product (or more commonly known as Gross Domestic/ State/

Regional Product) is a similar measure to value added, but also includes taxes less subsidies on the final goods and services produced. Gross product is the most commonly used headline measure of economic activity;

Household Income: Measures the level of wages and salaries paid to employees of the industry under consideration and to other industries through flow-on activity; and

Employment: Refers to the part-time and full-time employment positions generated

by the economic shock, both directly and indirectly through flow-on activity.

Employment has been estimated in terms of both total persons (full time and part time people employed) as well as in terms of full time equivalent (FTE) positions.

IO Assumptions

The key assumptions and limitations of Input-Output analysis include:

Lack of supply-side constraints: The most significant limitation of economic

impact analysis using IO multipliers is the implicit assumption that the economy has no supply-side constraints so the supply of each good is perfectly elastic. That is, it is assumed that extra output can be produced in one area without taking resources


11

away from other activities, thus overstating economic impacts. The actual impact is

likely to be dependent on the extent to which the economy is operating at or near capacity.

Fixed prices: Constraints on the availability of inputs, such as skilled labour, require

prices to act as a rationing device. In assessments using IO multipliers, where factors of production are assumed to be limitless, this rationing response is assumed not to occur. The system is in equilibrium at given prices, and prices are assumed to be unaffected by policy and any crowding out effects are not captured. This is not the case in an economic system subject to external influences.

Fixed ratios for intermediate inputs and production (linear production function): Economic impact analysis using IO multipliers implicitly assumes that

there is a fixed input structure in each industry and fixed ratios for production. That is, the input function is generally assumed linear and homogenous of degree one (which implies constant returns to scale and no substitution between inputs). As such, impact analysis using IO multipliers can be seen to describe average effects, not marginal effects. For example, increased demand for a product is assumed to imply an equal increase in production for that product. In reality, however, it may be

more efficient to increase imports or divert some exports to local consumption rather than increasing local production by the full amount. Further, it is assumed each commodity (or group of commodities) is supplied by a single industry or sector of production. This implies there is only one method used to produce each commodity and that each sector has only one primary output.

No allowance for economies of scope: The total effect of carrying on several types of production is the sum of the separate effects. This rules out external

economies and diseconomies and is known simply as the “additivity assumption”. This generally does not reflect real world operations.

No allowance for purchasers’ marginal responses to change: Economic impact analysis using multipliers assumes that households consume goods and services in exact proportions to their initial budget shares. For example, the household budget share of some goods might increase as household income increases. This equally applies to industrial consumption of intermediate inputs and factors of production.

Absence of budget constraints: Assessments of economic impacts using

multipliers that consider consumption induced effects (type two multipliers) implicitly assume that household and government consumption is not subject to budget constraints.

Despite these limitations, IO techniques provide a solid approach for taking account of the inter-relationships between the various sectors of the economy in the short-term and

provide useful insight into the quantum of final demand for goods and services, both directly and indirectly, generated by tourism accommodation on the Australian economy.

Significance Assessment Versus Impact Assessment

The framework employed in contribution (or significance) assessment differs from that

employed in economic impact analysis. Economic contribution assessment primarily seeks to identify the contribution of an existing industry to an economy; by comparison, economic impact analysis quantifies the impact of a ‘stimulus’ in a particular industry or in several industries (West, 1993).

When assessing the economic contribution of an industry, the standard economic impact

analysis approach is inappropriate. Economic impact analysis assumes that all the economic activity supported by an increase in final demand of the industry being

examined is attributable to the change in final demand, and would not occur without that change in final demand. Economic contribution assessment, on the other other hand, is a description of the level of activity associated with an industry or sector, but it does not presume the activity would not occur if the industry or sector were absent. That is, regardless of whether or not the industry being examined ceased to exist within the economy of interest, there will still be demand for their outputs (e.g., a complete vehicle needs tyres so that whether or not the entire tyre manufacturer is closed down, the car

manufacturer’s demand for tyres still exists). From a modelling stance, economic significance (or contribution) assessment examines the ‘impact’ to an economy if the


12

industry or industries being examined were to cease activity locally and assuming that

demand for outputs of the industry/ industries to be assessed will instead be met by imports.

Additional detail regarding the approach used for economic significance modelling is

provided in West (1993).

Model Development

The models used in this assessment are derived from sub-regional transaction tables developed specifically for this project. The process of developing a sub-regional

transaction table involves developing regional estimates of gross production and purchasing patterns based on a parent table, in this case the 2008-09 Australian transaction table (ABS, 2012b).

Estimates of gross production (by industry) in the study area were developed based on

the Australian gross output identified in the 2008-09 Australian table (as the assessment was for Australia as a whole.

Industry purchasing patterns within Australia were estimated using a process of cross

industry location quotients and demand-supply pool production functions as described in West (1993).

In addition to the general limitations of Input-Output analysis, there are two other factors that need to be considered when assessing the outputs of sub-regional transaction table developed using this approach, namely:

It is assumed the sub-region has similar technology and demand/ consumption

patterns as the parent (Australia) table (e.g. the ratio of employee compensation to employees for each industry is held constant); and

Intra-regional cross-industry purchasing patterns for a given industry vary from the national tables depending on the prominence of the industry in the regional economy compared to its input industries. Typically, industries that are more prominent in the region (compared to the national economy) will be assessed as purchasing a higher proportion of imports from input industries than at the national level, and vice versa.

Input-Output tables utilise an aggregated system of industry classifications based on the

ANZSIC system. In total, the 2008-09 Input-Output tables produced by the ABS (2012b) define 111 distinct industries.

Significance Assessment Approach

The contribution assessment is initially undertaken for the 2008-09 financial year to be consistent with the Input-Output transaction tables utilised. These estimates are then “rebased” to 2010-11 values using:

Data from the National Accounts (ABS, 2011a) to identify growth between 2008-09 and 2010-11 in gross product and gross value add for each industry of the economy;

Data on labour productivity increases (ABS, 2011b) to identify changes in productivity per employee for each industry between 2008-09 and 2010-11. These estimates were

then applied to 2010-11 production (estimated above) to identify preliminary 2010-11 employment estimates for each industry;

Employment estimates above represent full time equivalents (FTEs). Estimates of

total persons employed in 2010-11 were developed using a ratio of total persons employed in each industry in Australia in 2008-09 outlined in the ABS labour force survey (ABS, 2012a) compared to total FTEs in each industry outlined in the national

transaction tables. The 2008-09 ratio for each industry was assumed to hold constant across states and years;

Employed person estimates in 2010-11 for each industry calculated using the ratios above were then rebased to equal the average employment estimates for each industry across the quarters August 2010, November 2010, February 2011 and May 2011 in the ABS labour force survey (ABS, 2012a). By using this approach, the sum of all employment estimates by the 111 Input-Output sub-industries totalled the


13

average ABS labour force survey estimate across these four quarters in each industry

group; and

Estimates of incomes in 2010-11 were obtained assuming that the relationship between income and output in 2008-09 remains constant, which is consistent with

the stylised fact of cost shares of output being close to constant over the long-term.

Estimates of the flow-on effects of the Australian tourism accommodation sector in 2010-11 are obtained assuming constant proportion between individual industries’ flow-on effects and the direct (total) effects (output, GVA, income and employment) in 2008-09. Since the relationship between industries is likely to have changed over this period, the estimates produced are indicative only. In the absence of a more recent Input-Output transaction table, which forms the basis to quantify the inter-relationships between

industries, the estimates produced represent the flow-on effects of Australia’s tourism accommodation sector assuming no significant structural changes in the relationship between industries.


14

Appendix B: Tourism Research Australia Estimates of Tourism Economic Contribution

Tourism Research Australia (TRA 2012b) has released a publication outlining the tourism industry’s contribution to the Australian economy in 2010-11. A summary of these

estimates is provided in the table below.

Table B.1. TRA Estimates of Tourism’s Contribution to the Australian Economy (2010-11)

Tourism Industry Components Tourism Gross Product ($M)

Tourism Gross Value Add ($M)

Tourism Employment

(‘000 Persons)

Direct Contribution $34,595 $31,495 513.7

Flow-On Contribution (Type I) $38,692 $37,557 393.0

Total Contribution $73,287 $69,052 907.0

Source: TRA (2012b)

AECgroup’s estimates of the tourism industry’s contribution to the Australian economy in 2010-11 are provided in Table B.2. As can be seen, AECgroup’s estimates of tourism’s flow-on contributions differ from those produced by TRA (2012b), as do the direct employment estimates. The difference in estimates is due to several reasons, most

notably because AECgroup has:

Applied a different modelling approach.

Used more recent input-output transaction tables.

Included both type I and type II flow-on impacts.

These reasons are examined in more detail below the table.

Table B.2. AECgroup Estimates of Tourism’s Contribution to the Australian Economy (2010-11)


Tourism Gross Product ($M)

Tourism Gross Value Add ($M)


Direct Contribution $34,595.0 $31,495.0 455,524


Production Induced (Type I) $22,915.9 $21,249.6 190,165

Consumption Induced (Type II) $33,952.9 $31,484.1 279,208

Total Flow-On Contribution $56,868.9 $52,733.7 469,373

TOTAL CONTRIBUTION TO AUSTRALIA $91,463.9 $84,228.7 924,897

Notes: Totals may not sum due to rounding.


Modelling Approach

AECgroup conducted the modelling for the economic contribution of Australia’s tourism accommodation sector and Australia’s tourism industry using an economic significance assessment approach as outlined in West (1993), whereas TRA conducted their

assessment from an economic impact assessment approach. While both techniques use Input-Output transaction tables, the two approaches use different sets of flow-on

(indirect) ‘multipliers’, and as a result different estimates will be observed.

An overview of the differences between an economic significance (or contribution) assessment and economic impact assessment is provided in Appendix A. The differences in modelling approach are driven by the different outcomes sought:

An economic contribution assessment seeks to understand and quantify the

contribution of an existing industry (or sector) operating within an economy. That is, the industry is imbedded within the economy with existing supply chains.

An economic impact assessment seeks to understand the impact of an additional stimulus through the economy arising from a potential increase in final demand for products or services produced by an industry (or sector).


15

To identify the contribution of an industry (or sector) to an economy, it is necessary to

compare the economy with and without the industry in question (West, 1993). To achieve this, an economic contribution modelling approach examines the impacts of removing the industry (or sector) from the economy of interest (i.e., making it an exogenous variable

within the Input-Output multiplier calculations). Final demand in all other industries is assumed to remain unchanged in the transaction table, with inputs purchased from the industry in question assumed to be imported if the industry is no longer present in the economy.

By transferring the industry of interest to an exogenous variable, but maintaining final demand for all other sectors, we can then identify the level of economic activity that is ‘reliant’ on the industry being within the economy (i.e., is generated as a result of

intermediate purchases of goods and services by the industry in question). This is calculated as the change in economic activity between the ‘with’ and ‘without’ industry scenarios, using multipliers incorporating the industry in question’s supply chain as exogenous, but demand for the industry in question’s outputs by other industry as endogenous. The approach results in a modified equation to develop multipliers compared to traditional impact assessment. The approach used by AECgroup to modify

the equation is consistent with that presented in West (1993). As can be expected,

modifying the equations used results in different multipliers being produced for contribution assessment versus impact assessment. Additional detail regarding the differences in calculation methods is provided in West (1993).

Transaction Tables Used

Differences in AECgroup’s modelling results and TRA’s results can also be attributed to the Input-Output tables used to conduct the assessment. AECgroup used Australian

Bureau of Statistics’ most recent 2008-09 Input-Output transaction tables as the basis for assessment, whereas TRA used 2006-07 Input-Output transaction tables.

Flow-On Impacts Included

AECgroup has included both production induced (type I) and consumption induced (type II) flow-on impacts whereas TRA has only included type I. Type II multipliers outline the level of activity typically supported by household incomes (and subsequent consumption) being recirculated through the economy. Limitations of using type I and type II

multipliers is examined in Appendix A.


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Appendix C: Allocation of Australian Government Taxes

Australian Government Taxes

Australian Government tax revenues by industry can be found in Table C.1 below.

Table C.1. Australian Government Tax Revenue by Industry (2010-11)

Sector Tax Estimates ($M)

Contribution to GVA ($M)

Tax Per $1 of GVA Contributed ($)

Tourism Accommodation $758.8 $5,612.0 $0.14

Agriculture, forestry and fishing $829.0 $35,916.0 $0.02

Mining $3,961.9 $123,306.0 $0.03

Manufacturing $35,552.9 $108,305.0 $0.33

Electricity, gas, water and waste services $1,454.2 $30,883.0 $0.05

Construction $12,189.1 $99,866.0 $0.12

Wholesale trade $23,936.5 $56,646.0 $0.42

Retail trade $9,584.8 $61,032.0 $0.16

Food services $3,489.8 $25,908.0 $0.13

Transport, postal and warehousing $4,764.9 $73,803.0 $0.06

Information media and telecommunications $5,635.7 $40,749.0 $0.14

Financial and insurance services $33,865.2 $137,619.0 $0.25

Rental, hiring and real estate services $6,809.1 $29,800.0 $0.23

Professional, scientific and technical services $13,972.3 $86,574.0 $0.16

Administrative and support services $4,552.8 $32,419.0 $0.14

Public administration and safety(b) -$10,362.0 $68,222.0 -$0.15

Education and training $428.0 $61,261.0 $0.01

Health care and social assistance $1,035.8 $80,232.0 $0.01

Arts and recreation services $1,416.7 $11,288.0 $0.13

Other services $2,849.4 $23,981.0 $0.12

Ownership of dwellings $25.3 $109,951.0 $0.00

Total All Industries $156,750.1 $1,303,373.0 $0.12

Not allocated (a) $131,323.9

Total Australia $288,074.0 $1,303,373.0 $0.22

Note: (a) Taxes that have not been allocated to an industry include personal income tax, fringe benefits tax, income tax paid by superannuation funds and income levies on non-residents. Note: (b) The industry may not pay GST on goods produced; inputs which are used in the provision of goods and services may be

purchased which include a GST component. As a result the industry may receive a GST refund as GST paid by the industry exceeds GST received. This may result in a negative GST contribution for the industry. An Australian Tax Office breakdown of taxes paid by

industry can be found in Appendix B. Sources: ABS (2012b), ABS (2012c), ATO (2012)

Australian Government taxation revenues have been allocated to the tourism

accommodation sector based on the allocation approach outlined in Table C.2.


17

Table C.2. Allocation of 2010-11 Australian Government Taxes to Property Related Activities

Tax Item Tax ($M) Method of Allocation

Income Taxes Levied on Individuals

Personal Income Tax $135,075 Small proportion allocated to industry based on ATO tax liabilities, rest not allocated to industry (household tax)

Fringe Benefits Tax $3,348 Allocated by industry based on ATO tax liabilities

Total Income Taxes Levied on Individuals $138,423

Income Taxes Levied on Enterprises

Company Income Tax $58,118 Allocated by industry based on ATO tax liabilities

Income Tax Paid by Superannuation Funds $6,683 Allocated to financial and insurance services

Total Income Taxes Levied on Enterprises $64,801

Income Levied on Non-Residents $1,707 Not allocated – household tax

Government Borrowing Guarantee Levy $13 Public administration levy

Employers Payroll Taxes $505 Across by industry based on ATO tax liabilities

Taxes on the Provision of Goods Services

Goods and Services Tax (GST) $48,093 Across by industry based on ATO tax liabilities

General Taxes (Sales Taxes) $1,236 Retail trade

Excises and Levies $26,619 Across by industry based on ATO tax liabilities

Taxes on International Trade $5,839 Allocated to industry based on duties paid outlined in the Input-Output transaction table

Other Taxes on Provision of Goods and Services $838 Allocated to industry based on industry direct contribution to GVA

Total Taxes on Provision of Goods and Services $82,625

Total Taxation Revenue $288,074

Source: AECgroup, ABS (2012c), The Treasury (2010), ATO (2012)

Taxation liability by industry across a range of taxes is provided in Table C.3, as outlined by the Australian Taxation Office (ATO, 2012).


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Table C.3. Taxation Liabilities, by industry, 2009-10 income year

Entity grouping Individuals income tax ($M)

Companies and super funds (1)

income tax

Fringe benefits tax

GST Excise, PRRT, LCT and WET (2)

Total

Salary and wage earners $103,772 $0 $0 $0 $0 $103,772

Other individuals (3) $11,498 $0 $0 $0 $0 $11,498

Industry (4)

Agriculture, forestry and fishing $18 $280 $17 -$136 $28 $206

Mining $7 $6,780 $217 -$4,810 $1,975 $4,168

Manufacturing $74 $4,212 $404 $6,994 $11,552 $23,235

Electricity, gas, water and waste services $6 $369 $54 $545 $241 $1,215

Construction $770 $2,627 $128 $6,339 $0 $9,863

Wholesale trade $34 $5,139 $360 $11,851 $10,404 $27,788

Retail trade $184 $2,775 $161 $3,233 $2,268 $8,621

Accommodation and food services $31 $536 $36 $2,911 $1 $3,515

Transport, postal and warehousing $129 $1,040 $125 $2,381 $230 $3,905

Information media and telecommunications $17 $1,889 $104 $2,683 $1 $4,694

Financial and insurance services $59 $23,061 $318 $5,825 $181 $29,444

Rental, hiring and real estate services $79 $1,751 $59 $3,776 $0 $5,665

Professional, scientific and technical services $1,003 $2,857 $307 $7,795 $13 $11,976

Administrative and support services $110 $617 $111 $3,000 $5 $3,843

Public administration and safety (5) $12 $82 $604 -$10,512 $0 -$9,814

Education and training $46 $127 $141 -$54 $0 $261

Health care and social assistance $2,052 $620 $52 -$2,074 $0 $650

Arts and recreation services $71 $311 $38 $750 $1 $1,171

Other services $152 $353 $85 $1,622 $4 $2,216

Other (6) $202 $2,034 $78 $26 $72 $2,412

Total (7) $120,326 $57,462 $3,398 $42,146 $26,974 $250,305

Customs $0 $0 $0 $2,764 $22 $2,786

Total with Customs $120,326 $57,462 $3,398 $44,910 $26,996 $253,091

Note: (1) Super funds do not use the ANZSIC industry classification system. They have been included under financial and insurance services. (2) Excise, Petroleum resource rent tax (PRRT), luxury car tax (LCT) and wine equalisation tax (WET). (3) Refers to personal taxpayers that derive income from another source other than salary and wages or a business (for example, direct income from investments such as rental income, interests and

dividends). (4) The industry groups are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 codes on the Australian Business Register. Individuals’ business net tax estimate is based on their combined net primary production and net non-primary production income. (5) FBT includes Australian Government departments. (6) Entities that are not recorded in above groups. (7) Totals may differ from the sum of

the components due to rounding. Source: ATO (2012)


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Appendix D: Direct Contribution of Australia’s Tourism Industry

Australia’s direct contributions by tourism characteristic and connected industries are presented in Table D.1 and Figure D.1.

Table D.1. Direct Australian Tourism Contribution by Characteristic

Tourism Industry Direct Contribution ($M)

Proportion of Tourism Sector GVA

(%)

Tourism characteristic industries

Accommodation $5,612 17.8%

Ownership of dwellings $2,920 9.3%

Cafes, restaurants and takeaway food services $3,523 11.2%

Clubs, pubs, taverns and bars $1,318 4.2%

Rail transport $434 1.4%

Taxi transport $405 1.3%

Other road transport $549 1.7%

Air, water and other transport $4,839 15.4%

Motor vehicle hiring $687 2.2%

Travel agency and tour operator services $1,501 4.8%

Cultural services $521 1.7%

Casinos and other gambling services $213 0.7%

Other sports and recreation services $587 1.9%

Total tourism characteristic industries $23,109 73.4%

Tourism connected industries

Automotive fuel retailing $160 0.5%

Other retail trade $3,765 12.0%

Education and training $2,409 7.6%

Total tourism connected industries $6,335 20.1%

All other industries $2,051 6.5%

DIRECT TOURISM GROSS VALUE ADDED, at basic prices $31,495 100.0%

Tourism net taxes on products $3,100 -

DIRECT TOURISM GDP $34,595 -



20

Figure D.1. Direct Australian Tourism Contribution by Characteristic


Table D.2 below presents the same information across the 20 sectors outlined in the Australia and New Zealand Standard Industry Classifications used by the ABS.

Table D.2. Direct Australian Tourism Contribution by Industry

Industry Direct Contribution ($M)

Proportion of Tourism Sector GVA (%)

Agriculture, forestry and fishing $0 0.0%

Mining $0 0.0%

Manufacturing $0 0.0%

Electricity, gas, water and waste services $0 0.0%

Construction $0 0.0%

Wholesale trade $0 0.0%

Retail trade $3,926 12.5%

Accommodation and food services $10,454 15.4%

Transport, postal and warehousing $6,764 17.8%

Information media and telecommunications $500 21.5%

Financial and insurance services $63 1.6%

Rental, hiring and real estate services $718 0.2%

Professional, scientific and technical services $4 2.3%

Administrative and support services $1,677 0.0%

Public administration and safety $0 5.3%

Education and training $2,409 0.0%

Health care and social assistance $561 7.6%

Arts and recreation services $1,320 1.8%

Other services $180 4.2%

Ownership of dwellings $2,920 0.6%

Gross Sector Value Add (Total) $31,495 100.0%


$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

Automotive fuel retailing

Casinos and other gambling services

Taxi transport

Rail transport

Cultural services

Other road transport

Other sports and recreation services

Motor vehicle hiring

Clubs, pubs, taverns and bars

Travel agency and tour operator services

All other industries


Ownership of dwellings (a)

Cafes, restaurants and takeaway food services

Other retail trade

Air, water and other transport

Tourism accommodation



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Appendix E: Contribution of Tourism Accommodation

The direct and flow-on impacts from Australia’s tourism accommodation sector is presented in Table E.1.

Table E.1. Estimated Direct and Flow-On Contribution of the Tourism Accommodation Sector to the Australian Economy, 2010-11


Gross Product ($M)


Household Incomes

($M)


Employment (FTE)

Direct Contribution $6,164.6 $5,612.0 $3,356.8 96,671 79,609


Production Induced (Type I) $4,980.2 $4,618.1 $2,680.0 50,198 43,837

Consumption Induced (Type II) $6,899.9 $6,398.2 $3,121.5 66,993 55,584

Total Flow-On Contribution $11,880.1 $11,016.2 $5,801.5 117,191 99,421

TOTAL CONTRIBUTION TO AUSTRALIA $18,044.6 $16,628.2 $9,158.3 213,862 179,031

Notes: Totals may not sum due to rounding. Sources: ABS (2011c), AECgroup

The percent contribution Australia’s tourism accommodation sector makes to the Australian economy is presented in table E.2.

Table E.2. Estimated % Contribution of the Tourism Accommodation Sector to the Australian Economy, 2010-11


Gross Product (%)

Gross Value Add (%)

Household Incomes

(%)

Employment (Persons %)

Employment (FTE %)

Direct Contribution 0.4% 0.4% 0.5% 0.9% 0.8%


Production Induced (Type I) 0.4% 0.4% 0.4% 0.4% 0.4%

Consumption Induced (Type II) 0.5% 0.5% 0.5% 0.6% 0.6%

Total Flow-On Contribution 0.8% 0.8% 0.9% 1.0% 1.0%

TOTAL CONTRIBUTION TO AUSTRALIA 1.3% 1.3% 1.5% 1.9% 1.8%

Notes: Totals may not sum due to rounding.


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