The Impact of Investment in Tourism-Related Sectors of Razavi Khorasan Province on the Economy (A Two-Region Input-Output Model Approach)

Rahmani, Fatemeh; Zareei, Afsaneh

doi:10.22059/ier.2024.371433.1007920

The Impact of Investment in Tourism-Related Sectors of Razavi Khorasan Province on the Economy (A Two-Region Input-Output Model Approach)

Document Type : Research Paper

Authors

Fatemeh Rahmani

Afsaneh Zareei

Iranian Academic Center for Education, Department of Tourism Economics, Culture and Research (ACECR) of Khorasan Razavi, Mashhad, Iran.

10.22059/ier.2024.371433.1007920

Abstract

Tourism is one of the most important sources of income in the Razavi Khorasan province. This study investigates the impact of investment in the tourism sector of Razavi Khorasan province on the value added in different economic sectors of the province and the rest of the national economies. The two-region input-output model is a method that can simultaneously investigate the effects of investment in 13 sectors related to tourism on the province's economy and the rest of the national economies. Using this model, it is possible to examine the effects of investment in each of the 13 sub-sectors related to tourism on the economy of Razavi Khorasan Province and the rest of the provinces of the country. the highest total effect in the province occurred as a result of increased investment in the sectors of "government health activities", "wholesale, and retail, except for motor vehicles and motorcycles" and "administrative activities and support services". In the rest of the national economies, increased investment in the sectors of "water and air transportation", "rail transportation", and "residential buildings" resulted in the greatest impact. Therefore, investing in these sectors in Razavi Khorasan province produces the highest value added. Therefore, investing in medical tourism, investing in selling souvenirs, food, and beverages for tourists, administrative and support activities related to the tourism sector, such as the activities of tourism agencies, developing air and rail transportation, and improving the facilities of residential houses rented to tourists, can improve the economic situation of the province and the rest of the national economies.

Keywords

investment in tourism

Iran

Razavi Khorasan province

two-region input-output model

value-added.

Subjects

Economy of Iran

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