Concepedia

Evaluating the Economic Impact of Cruise Tourism: A Case Study of Barbados

Anatolia · 2002 · 47 citations · 13 references

TL;DR

The failure of import substitution has led many countries to seek alternative development paths, with export‑led growth in South Korea, Taiwan, Singapore, and Hong Kong prompting a shift toward comparative advantage industries such as tourism, which is a key export sector for island economies and is expected to yield macroeconomic benefits, especially in improving the balance of payments. The study develops a model to evaluate the impact of cruise tourism on a destination and tests it on Barbados. The model assesses cruise tourism’s economic impact on Barbados by analyzing relevant economic indicators.

Abstract

ABSTRACT The failure of the import substitution model for economic development has led many countries to look for alternative explanations. The success of export led development in South Korean, Taiwan, Singapore, and Hong Kong has resulted in some countries shifting their development to industries in which they have a comparative advantage, that is, export industries. Tourism is one export industry that developing nations, particularly Island economies, have a comparative advantage. Traditionally, the most important reason for developing a tourism industry is the expected macroeconomic benefits. With improvement in the balance of payments being the most important of those benefits. This study develops a model to evaluate the impact of cruise tourism on a destination and tests the model on the economy of Barbados.