A Comprehensive Study of Economic Impact Analysis Methods with Respect to Tourism Industry

Abstract

This paper discusses thecritical analysis between the Input Output Analysis, Cost Benefit Analysis and Economic Impact Analysis by using the Computable General Equilibrium Model. The article discusses the importance of tourism, elements of economic development of the tourism. The article explores the core reasons of economic development of the destination. This study reveals different components, levels, views, approaches and perspectives involved inanalysis of economic development based models and techniques. The study attempts to conceptualize the elements involved for the economicdevelopment of the destination.The ultimate output of the analysis recognized that Economic Impact Analysis does not equate all the economic benefits incurred by the special event at the tourist destination. To calculate the impact of special events Cost Benefit Analysis is the suitable method because for a special event inputs are needed. The study emphasizes that Cost Benefit Analysis is fully focused on the calculation of economic efficiency. While Cost Benefit Analysis is unable to express the socio-cultural factors, political factors of human existence and the complications of ecological system. A conceptualized study of comparative analysis between Cost Benefit Analysis and Computable General Equilibrium Modelwhich offer a foundation for structuring and assessing empirical research,and provide additional insights and knowledge into the dynamics and complexity involved specifically to analyze the suitable method to examined the economic development of the tourist destination.This paper acknowledges that event assessment, which focuses only on economic impacts, is too narrow in scope to provide sufficient information to policy makers and governmentfunding agencies.