No. 156. TOURISM LED-GROWTH OR GROWTH-LED TOURISM?
N. Rodousakis, G. Soklis. 2022. (in Greek)
This paper assesses the intersectoral linkages of the tourism sector of the Greek economy using an extended version of the hypothetical extraction method, which allows the intersectoral effects of the labor force reproduction process to be taken into account. The findings of our analysis show that the role of tourism in the Greek economy is more as a seller of inputs in other sectors than as a buyer of inputs, a finding that can be reduced to the high participation of the tourism product in the labor force reproduction process. In other words, an increase in demand for the tourism product cannot bring about a strong growth dynamic in the economic system, due to the fact that the sector’s dependence on inputs from other sectors for its operation is low and, therefore, the growth of the tourism product will lead to a large increase in the production of the other sectors of the economy. On the contrary, an increase in demand for the products of other sectors will lead to a strong growth of the tourism sector, due to the fact that the dependence of other sectors on inputs of the tourism sector is high. Therefore, the interdependencies in the production structure of the Greek economy show that the tourism sector cannot be the basis of a growth policy (i.e. by stimulating tourism demand), but, conversely, the growth of the Greek economy will lead to a significant increase in its tourism sector.