item_3.1_ON TOURISM SATELLITE ACCOunt.pdf

Information about TSA

1. UNWTO Special Workshop on Tourism Statistics

Session 3:
"Institutional and Technical Requirements for Successful Tourism
Satellite Account (TSA) Implementation“

09:00-15:30 November 21, 2014 (Friday)
Todaiji Temple Cultural Center
100 Suimon-cho, Nara-city, Nara-prefecture 630-8208, Japan.

Tadayuki (Tad) Hara, PhD
Associate Dean of Finance & Administration
Rosen College of Hospitality Management

University of Central Florida
http:/hospitality.uof.edu/person/dr-tadayuki-hara/

OS aora
Hospitality Management
E nera of Cente Florida

2. — How big is this industry?
+ What is % contribution to GDP?
+ Is it larger than other industrial sectors?
— How many jobs are created?
— How much tax is generated?
— How much wages are paid to workers?

+ Therefore, we need a method to measure
tourism as an industry >TSA

OS aora
Hospitality Management
E nera of Cente Florida

3. Tourism Satellite Accounts (TSA)
e Satellite Accounts ?

e = An attempt to measure the size of economic
activities or sectors which are NOT included in the e
established national accounts.
e World Tourism Organization (UNWTO) says,
e “Set of definitions, classifications integrated into
tables, organized in a logical, consistent way, which
allows us to view the whole economic magnitude of
rism in both its aspects of demand and supply”

4. Introduction to TSA

e Why TSA was developed in the U.S.?
e Travelers/Tourism are important consumers of U.S.
production
e Industries that cater to travelers
euse a substantial share of output from other industries

e Add substantial economic value to other industries”
outputs

mploy large numbers of people (taxpayers)
of Tourism as an Industry?

are not identified in the standard
ion of I-O accounts

6. Introduction to TSA

e TTSA extend the I-O accounts in that they
attempt to measure an economic activity
(travel and tourism) undertaken by only a
subset of purchasers (visitors) and involving
only a subset of purchases (tourism demand).

_ e Calculation of Tourism Industry's Output, Value

; is more difficult than those of “Iron and

“Agriculture”.

Ste

=

7. Introduction to TSA

WHO are the Purchasers?

All People
(PURCHASERS)

8. Lea

mm

Hotel (80 %)
Spm, À

9. Introduction to TSA (1)

e Identify ONLY the output of industries that
are typically associated with tourism
activities (ex: hotels, air/water/rail transport)

e Lead to UNDERESTATEMENT of
tourism as an industry

e Pick up ALL the expenditures on “Eating

- and Drinking Places” “SHOPPING” for
tourism economic activities
e Lead to OVERSTATEMENT of tourism
as an industry

10. Introduction to TSA (2)

e The purpose of TSA
e To provide a framework for analyzing tourism
expenditures in a systematic and consistent
way
e To depict a link between tourism demand
expenditures AND the industries that
roduce tourism goods and services.

11. Basic Set of Tables in TSA

Table a: Inbound tourism expenditure by products and classes of visitors
Table 2: Domestic tourism expenditure by products, classes of visitors and
types of trips

Table 3: Outbound tourism expenditure by products and classes of visitors
Table 4: Internal tourism consumption by products

Table 5: Production accounts of tourism industries and other industries (at
basic prices)

Table 6: Total domestic supply and internal tourism consumption (at
purchasers’ prices)

Table 7: Employment in the tourism industries

Table 8: Tourism gross fixed capital formation of tourism industries and other

industries
Table 9: Tourism collective consumption by products and levels of government
Table 10: Non monetary indicators

12. Introduction to TSA (3)
e TSA definitions
e Based on WTO and OECD definitions (Table 2)

o Visitors (distance, for example)
o Usual Environment

e “Tourism Demand” consists of

e Business Travel 8 Travel by government
employees
esident Household Travel

13. Introduction to TSA (4)

e “Tourism Commodities” (Table 3)
e Commodities that are typically purchased by visitors
directly from producers.
e Tourism Commodities

e Hotels, Restaurants, Leisure Activities,
transportation etc.

-Tourism Commodities

14. Introduction to TSA (5)

e Tourism Industries

e Can be identified by analyzing the
relationships shown in the I-O accounts
between tourism commodities and the
producing industries (Table 4)

e sell a significant* portion of their output to

"DD isitors, (*=the industries” revenues and profits

15. Introduction to TSA: (6)
Components Overview

e Production (Table 5) <from U.S. I-O
. Supply and Consumption (Table 6) <from U.S.
1-0

a Tourism Demand by Type of Visitor (Table 7)

16. Introduction to TSA: (7)
Production Table (Table 5)

e Similar to I-O, but with 3 modifications
1. Rows and Columns are modified
2. Detail is shown only for TTSA commodities
and industries, others are aggregated.

3. The intermediate inputs and the value-
added components are shown as rows at
he bottom of the table.

the industry designated as its primary
roducer.

17. lar
n [Transport [we
[Taco [ation

Sr
[DomesicArss |

Domestic Airfare

un oe [si

‘compensation of employees
indrect business taxes

Souroe: quoted by T era rom Table SUS Travel and Tourism Safelite Accounts for 122$ Ckubo & M Planing, Survey of Curent Business

18. HSK LEER UT OM ERO LE EF Table 5: Production accounts of tourism industries and other industries - Ja

BRARARS SAAS

la

OSEN Once you understand how to read one, you can read the others

Hospitality Management
LLEGE Universi of Cent Florida

19. TSA: How to Read Supply &
Consumption Table (Table 6)

e Supply and Consumption of Tourism-
related “Commodities” displayed in one
table.

e Left Side of table = Supply (production)
e Domestic Production + Imports + Others
Right Side of table = Consumption

rmediate needs (AX) + Final Demand
ousehold etc) + others

20. SUPPLY CONSUMPTION py]

Table 6 hable 6 Supply | a
and
Eo

55220

frente Are [fra

SR a Ba a En m: mr
THis par one ir presetaton purposes PY

[armer oonmoates — | 18853 [121107 4 sonara Oreste Be

Froth EE 127 076) > 430] 671 EEE) fas. za 03 ral vo. 00250 au ara

Supply of the Tourism Consumption of the
Commodities Tourism Commodities

21. TSA: Tourism Demand by Type

Table 7 Tourism
Demand by Type

of Visitors

Eating and drinking places
Passenger rail
Passenger Bi

[Auto and Truck Rental

[Other Vehicle rental

JAI Other Commodities

21

22. TSA: Tourism GDP of

Intermediate
Consumption

Hotels and lodging places
Eating and drinking places
Railroad and related services

Local and suburban transit

[Water Transportation _ | 26.681]
ee |

jaj
RIES
Fel Fen eal Bs
sjaléla]s|

In

Out of Total Industry Output, you distill the tourism output

22

23. TSA: Tourism Employment
Compensation

Table 9 Tourism
Employment and

Compensation

1661] 080] 1329 32615] 26,092
Eatin and drinking places Den ciel oat] 91.266| 13,002
eiroad and related services [24a oo tol 1477) see)
fica aot tool al a
Fister Transporation [too ope “tal +0] es]
[Mis amusement and recreation_ | 638] ote] 114) 10,973] 1,975]

a |

ARA a ©
[Total Tourism Industries | | Tao | 81,260]
[Total All other industries | | je 117,908] | 3,645,042]
EE M 229]

24. TSA: How Data are Collected

e From U.S. I-O table (Table 5 & 6)
e The tourism expenditures in the TTSAs were
derived from the I-O estimates of consumption
e “Pure Tourism” commodities (ex: hotels)

e How to separate resident & non-resident household?
e “Estimates of the expenditures by non-residents were
subtracted from the total”

d-use” commodities (ex: restaurants)

(PCE) based on Census Bureau Data, the CEX estimates are
about 30% lower than the PCE estimates> Data problem!

25. TSA: How Data are Collected

e Various Data Sources
e “Mixed Use Commodity for Business & Gov
demand”

e The American Express Survey of Business Travel
Management

e “International Demand”

«BEA Balance of Payments data & In-Flight Survey
o ism Employment”

. au of Labor Statistics & BEA estimates

26. TSA: Detailed Data on Tourism
Industry in the United States

e OUTPUT

e 2.1~2.4% of total U.S. Output in 1992

e 1.9-2.2% of U.S. GDP ($120~135 Billion)
e “Hotels & Lodging Industry”

e The highest Value-Added among tourism industries
(31-35% of Tourism GDP $42 B)

27. TSA: Detailed Data on Tourism
Industry in the United States

e Tourism Employment

e 3.2~3.7% of Total Employment in the U.S. (3.8~4.4
million people)

e Much higher than its share of Value Added to GDP
(1.9~2.2%) >tourism industries are more labor
intensive than the economy as a whole

nsation of Tourism Employees
of total compensation of employees

eC
e2.

28. Tadayuki (Tad) Hara, PhD, UCF
Patsy D. Moskal, EdD, UCF

OSEN ah
Hospitality Mana; it
LLEGE university of Central Florida

29. TSA Knowledge Dissemination -1

« Educational Environment

— 180 Universities with Hospitality/Tourism programs in the
USA.
— Few offer dedicated courses on Tourism Statistics/TSA

— Few students out of 10,000+ graduates learn about
TS/TSA

— Not many hospitality instructors were trained in tourism
statistics, Input-Output, System of National Accounts,
Social Accounting Matrix >Disconnect with
National/International Statistics Offices

EQ a
Hospitality Management
LLEGE Universty of Con

University of Central Florida

30. TSA Knowledge Dissemination - 2

+ Most students in hospitality/tourism do not learn
macroeconomics, linear algebra (matrix)
— Not many students like quantitative materials (that may
be why they are not in Economics program)

¢ Hospitality Management curricula have been
geared towards “applied management”
— Subjects: Marketing, Accounting, Finance, Human
Resources, Services, etc.
— Sector specifics: meeting, theme park, restaurants,

cruise,

N Hospitality Management
etnias Central Florida

31. TSA Knowledge Dissemination - 3

+ MOOC (Massive Open Online Course)?
« Started in 2008 but gained momentum in 2012
« Year of the MOOC by NY Times in 2012
* Coursera, Udacity, edX
« Massive > can be thousands, tens of thousands

« Open > basically, free of charge
« Online > access anywhere, anytime

* Course > it is usually given by faculty at
accredited research universities — academic
dissemination of knowledge

Hospitality Management
eee nera of Cente Florida

32. Research Objectives

— To verify diversity of participants (in terms of

+ To assess how the technical contents can be disseminated and
taught effectively to audiences with diverse characteristics
— To evaluate teaching effectiveness of highly quantitative
and complex contents of economic impact studies and TSA.

+ To check if the patterns of participation rate, completion rate would
be comparable with prior MOOC courses

+ To compare regular students with MOOC students by conducting the
same survey

OS
Hospitality Management
E nera of Cente Florida

33. MOOC Research (1)

« Most papers are recent (2011-).

— MOOCSs have a high enrollment of participants
at the start, but they also have a high attrition,
with lurkers, who follow the course from the
sidelines (deWaard et al 2011)

— In the first week, about 15% on average
attempted the two homework assignments. By
the fifth week, the number of students doing
homework decreased to 2% (Aiken, Lin, Schatz,
& Caballero, 2013)

OS aora
Hospitality Management
LLEGE Universi of Cental Florida

34. MOOC Research (2)

— MIT Teaching and Learning Laboratory and
Harvard Graduate School of Education

+ “In MOOCs, low barriers to registration lead to large
numbers of registrants with diverse interests and
backgrounds.”

« Out of 154,763 total students, 4,454 earned a certificate,
about 2.9% of the total registrants. (DeBoer, Ho, Stump,
& Breslow, 2013)

OS aora
Hospitality Management
E nera of Cente Florida

35. MOOC Research (3)

— “Ten Years of Tracking Online Education in the
United States” Allen & Seaman, 2013

« Only 2.6% of higher education institutions currently
have a MOOC, another 9.4% report MOOCs are in the
planning stages.

« The majority of institutions (55.4%) report they are still
undecided about MOOCs, while under one-third
(32.7%) say they have no plans for a MOOC.

OS aora
Hospitality Management
E nera of Cente Florida

37. Regular Course Contents (16 weeks)

— Introduction

— Economic Impacts of Tourism

— Minimum Basic of Matrix Algebra

— Input-Output Model

— Social Accounting Matrix (household decomposition)

— Economic Impact Calculation (I-O and SAM assignments)
— Poverty Issues (responsible capitalism & UNMDG)

— Tourism Satellite Accounts

— Tourism Planning and Sustainable Tourism Modeling

— International Issues

OS aora
Hospitality Management
E nera of Cente Florida

38. Contents (© weeks)

— Introduction

— Economic Impacts of Tourism

— Minimum Basic of Matrix Algebra

— Input-Output Model

— Social Accounting Matrix (household decomposition)

— Poverty Issues (responsible capitalism & UNMDG)

— Tourism Satellite Accounts

— Tourism Planning and Sustainable Tourism Modeling
— International Issues

OSEN oia
Hospitality Management
E nera of Cente Florida

39. Some Lecture Samples (6 pages)

OSEN

Hospitality Management
LLEGE University of Central Florida

40. Eg Input Output Model

« Inter-industry needs +
Total Output

« Tire Factory (ex: Firestone)

— Sales to car company (ex: Ford)

+ Computer Hard-Disk Factory

— Sales to Hewlett Packard
Airlines

— Sales to Wholesalers

41. Total Output (X) consists of
— Inter-industry needs (AX), (0<A<1)

Also, | <Identity Matrix

m AX X

Inter-industry needs + = Total Output
(2)Y=X-AX (3) Y = (I-A) X
(4) Y _ d-A)x
G-A) G-A)

42. SAMPLE

« Industry consists of many sectors

— Simplify into 3 sectors (3 x 3) in our case
+ Value Added (lower left-side)

— Labor, Capital etc

Total Output

Agriculture
Manufacturing

a — — Te) [>
Sectors on the Row (left side of the matrix)

produces goods & services.

Sectors on the Column (upper side of the
Matrix) receives goods and services.

Let’s put the numbers and see how it works.

43. canvas

WAR Comes- Assignments + Grades Calendar Course Cathy

Lecture 2 Quiz

Quiz Instructions

(Question 1

44. Production
Activities
(1-O table)

Final demands:
Goods and

Services MX
en Vaux

lof Endowments
FACTO RS Ibor and capital)

(of production:

Hospitality Management
OLLECE ee Cental Florida NS

45. « You see , Factors (of
Production), and Institutions.

« Others are trade accounts for imports and
exports.

OSEN Ber
Hospitality Mana; nt
CRE area annem,

47. Description of student profiles 1

Table 2: Survey Results - Reason for Taking the Tourism Industry Analysis

Course

14026: What is your

reason fortaking this Bepartofa Gain skills Check out

course? (select all that community Complete foracareer Canvas Learn about

apply) of learners the course opportunity Network the subject Other Total
Responses 13 15 46 uf 7 6 164
percentage (n = 93) 13.98% 20.43% 49.46% 7.53% 78.49% 6.45%

Source: Made by authors based on data from CN1468 Canvas

Network

Table 3: Students’ Expectations of Labor Input per Week

14027: How many hours a Between Between Between Between More than
weekare you planningto Lessthan 1and2 3and4 Sand6 7and10 10hoursa
spend on this course? hour hours hours hours hours week

numbers 2 25 32 16 14 3
Percentages (n=92) 2.17% 27.17% 34.78% 17.39% 15.22% 3.26%
Source: Made by authors based on data from CN1468 Canvas Network

Table 4: Gender of Students
Gender of Students female

OSEN

numbers 51

LIEGE Mana Percentages (n=91) 56.04%

48. Table 5: Age of Students in MOOC course
numbers

1824 2534 2544 4554 55€
8 Table S: Age of Studentsin MOOC course numbers
Table 6: Devices Usage

number of devices
76

cipation in MOOC

14035: Have you participated in a MOOC before? Yes No

number of responses vo 73
Percentages (n=90, 1 missing value) 18.89% 81.11%

Source: Made by authors based on data from CN1468 Canvas
Network

Table 8: Previous Participation in Online Courses
14034: Have you taken an online course before? Yes No
number of responses 43 47
Percentages (n=90, 1 missing value)

47.78% 52.22%

Table 9: Prior Work Experience in the Industry

Yes, Ihave
worked for more
than 5 years in
the hospitality
and tourism
industry, 27,
30%

49. Tam not
lamnot Ihave currentiya Lam

Ihave taken currentlya taken student and currentiya

continuing student, but continuing have not taken professor, a

education have education continuing teacher,ora

current coursesin graduated in courses in education professional
academic thelastS thelast5 thelast5 coursesinthe educational
status? years. years. years. lastSyears. facilitator.

Number of
responses 15
Percentages

Table 11: Academic Achievement of | Table 12: English? fes)

Participants in the MOOC very, very

Englishis my basic. 2
native
language. 13

ean read
English well but
havelimited

writing skills, 22

Lean read basic
English texts and
havea very
basiewriting
skills.,7

Number of responses

50. Description of. siudeni

Table 13: Geographical Locations of Students

West Europe
South-east Asia

South Asia

South America

North America

Middle East

East Europe or Former USSR
East Asia

Central America

Australia & South Pacific
Africa

Table 14: Information Source to Learn about the MOOC on Tourism Industry Analysis

Through a
14025: How did you From a Canvas From anews story social media
hear about this Canvas or Canvas Froma (print, radio¥, or TV) From a site (like
Network Course? Network friend or Fromthe that mentioned web Iclicked Facebook or
{select all that apply) communication Colleague instructor Canvas Network search on an ad Twitter)
Number of responses 16 36 10 3 15 2 22
Percentages (n = 91) 17.58% 39.56% _ 10.99% 3.30% 16.48% 2.20% 24.18%
Source: Made by authors based on data from CN1468 Canvas Network

J
Hospitality Management
OLLEGE University of Conta Florida

51. Analyses: Regular course VS MOOC

+ Regular course (16 weeks) and MOOC course
(6 weeks) covering the same topics

— Sample sizes are small, thus | show only
preliminary data

OS aora
Hospitality Management
LLEGE Universi of Cental Florida

52. Learned TSA before? Social Issues?

Did you learn Tourism Satelite Accounts in previous courses? RC

‘= Did you learn Tourism Satelite Accounts in previous courses? MOOC

What did you
think about the
application of
SAM modeling

3 3 for social

0 issues? RC

= om =

Heard of UNMDG?

Have you heard or studied abou: UNMDG in other courses? RC ¡a

think about the
application of
SAM modeling
for social
issues? MOOC

‘x Have you heard or studied abou: UNMDG in other courses? MOOC

No | hate to be bothered

4 4

| mM :-
= ‘

No, Never Yes,theard ofit | Yes, Istudiedit once | Yes, studied multiple Axis Title
somewhere times

1 liked to learn more about social issues —

1do not care too mı

2 [Management
of Central Florida

53. Preliminary Findings

> YES, in educational level, gender, age, current
status, global locations, English skills (“students”??)
> Similar trends with past MOOC
studies such as large dropout and lurkers exist, yet, the
completion rate appears to be higher than other MOOCs.
— More focused on specific topics
— Shorter course (6 weeks) based on past MOOC research
— Certificate of Completion may entice some to stay on?
— Relatively high numbers of lurkers? (who stay with course but will not take
exams) — they may change their minds at the last moment.
Quizzes and Final exams can verify whether students learned
contents enough.

OS aora
Hospitality Management
E nera of Cente Florida

54. SAMPLE: Lecture 6 (TSA) Qi

TSA-Okubo-2

TSA-Okubo-3

55. Implications/Future Research

— with minimum operating expenses to Institutions
— no costs (or little costs) to students

« Issues of money, visa, English would not prevent them from learning
knowledge they want.

— To make participants’ knowledge level uplifted

— Can cross over language barriers easier (by learn-at-your-
own-pace model)

— Systematic verification of learning outcome is possible

— Traditional workshops and training can be geared towards
bilateral discussion & consultations as unilateral dissemination
can be effectively conducted by MOOC.

56. MOOC course on Economic Impact & TSA
Now open - Starts on Dec.1, 2014.

https://www.canvas.net/courses/tourism-industry-analysis-1
Thank you very much. Tad Hara

[email protected]
http://hospitality.ucf.edu/person/dr-tadayuki-hara/