Comparing existing TSA (UNWTO) and CSA (the CAB Manual) Marion LIBREROS Consultant

Common reference: SNA 1993 and 2008 SNA 2008 refers to 2 different types of extensions of the Central framework: Key sectors accounts and satellite accounts Key sectors accounts: Instead of using the product and industry classifications (CPC and ISIC) in their standard order and at the same level of their hierarchies, it can be very instructive to select a group of products or industries of particular importance to the economy, designated here as a key sector. The choice might be very specific, for example concentrating on a single agricultural crop or mineral output, or may be more general such as all the goods and services primarily serving tourism. In either case, a set of supply and use tables may be compiled concentrating on the key sector and aggregating other products and industries. In some cases, where the activity is undertaken by relatively few, relatively large enterprises, it may be possible to go further and compile a complete sequence of accounts for the key sector also. A further and more extensive form of flexibility is that of a satellite account. As its name indicates, it is linked to, but distinct from, the central system. Many satellite accounts are possible but, though each is consistent with the central system, they may not always be consistent with each other.

Satellite Accounts Broadly speaking, there are two types of satellite accounts. (SNA 2008) One type involves some rearrangement of central classifications and the possible introduction of complementary elements. Such satellite accounts mostly cover accounts specific to given fields such as education, tourism and environmental protection expenditures and may be seen as an extension of the key sector accounts just referred to. They may involve some differences from the central system, such as an alternative treatment of ancillary activities, but they do not change the underlying concepts of the SNA in a fundamental way. The main reason for developing such a satellite account is that to encompass all the detail for all sectors of interest as part of the standard system would simply overburden it and possibly distract attention from the main features of the accounts as a whole. Many elements shown in a satellite account are invisible in the central accounts. Either they are explicitly estimated in the making of the central accounts, but they are merged for presentation in more aggregated figures, or they are only implicit components of transactions which are estimated globally. The second type of satellite analysis is mainly based on concepts that are alternatives to those of the SNA.[….]. These include a different production boundary, an enlarged concept of consumption or capital formation, an extension of the scope of assets, and so on. Often a number of alternative concepts may be used at the same time. This second type of analysis may involve, like the first, changes in classifications, but in the second type the main emphasis is on the alternative concepts. Using those alternative concepts may give rise to partial complementary aggregates, the purpose of which is to supplement the central system.

Differences between Key sectors accounts and satellite accounts of the first type Both suppose rearrangements of the central classifications of products and activities in order to visibilize a specific segment of the economy; In key sectors accounts, additional concepts and treatments might be introduced, but they are marginal and do not lead to major changes in the basic aggregates generated in the SNA Central framework; Both can be viewed, either as Key sectors accounts, or Satellite Accounts (only marginal differences: case of TSA for the treatment of travel agencies…). IN particular, in the case of TSA (and CSA, because of the importance given to the measurement of GDP, no change in the scope of production and intermediate consumption…) (see the case of transportation on own account…)

The approaches TSA (UNWTO) The visitor defined as “traveller taking a trip for a mian destination outside his/her usual environment for less than a year, for any main purpose other that to be employed by a resident entitiy in the country or place visited” Tourism expenditure: the amount paid for the acquisition of consumption goods and services and valuables for own use or to give away for and during tourism trips. Tourism consumption: an extension of consumption expenditure in order to include social transfers in kind, imputations of accommodation services on own account, etc… The main classifications of visitors’ expenditure: according to the main origin/destination of visitors (markets….) and main characteristics of visitors and their visits CSA (CAB Manual) Culture defined as “those human activities and their products that derive from the creation, production, dissemination, transmission, consumption and appropriation of symbolic contents related to the arts and the heritage”; The challenges: to convert it into economic measurement (two very different worlds): in products and productive activities according to international classifications (CPC and ISIC); The main classifications: according to the different cultural sectors and subsectors;

Theoretical Challenges TSA To recognize that all products consumed by visitors are not tourism products: derive lists of specific and characteristic products and activities; because of the need to recognize production activities as more concerned by tourism. To determine Characteristc products on the basis of two criteria: The share-of-expenditure/demand condition The share-of-supply condition To relate the supply and use balances of tourism characteristic products with tourism consumption; To relate the production accounts of tourism characteristic activities with tourism consumption; To define significant aggregates and explain their different scope CSA To distinguish productive cultural activities from cultural practices (Outside the scope of the SNA production boundary); To define the treatment of Knowledge capturing products* and of the activities producing them; To define the treatment associated with tangible and mostly intangible heritage; (pending issue) To recognize that GDP of characteristic activities is not a proper indicator of the economic importance of culture… To look for other economic indicators and aggregates: culture national expenditure and beyond???? To recognize the importance of third parties in the access to cultural goods and services by households and the role of public and private support to culture

Knowledge capturing products: definition according to SNA2008 para 6.22 Knowledge-capturing products concern the provision, storage, communication and dissemination of information, advice and entertainment in such a way that the consuming unit can access the knowledge repeatedly. The industries that produce the products are those concerned with the provision, storage, communication and dissemination of information, advice and entertainment in the broadest sense of those terms including the production of general or specialized information, news, consultancy reports, computer programs, movies, music, etc. The outputs of these industries, over which ownership rights may be established, are often stored on physical objects (whether on paper or on electronic media) that can be traded like ordinary goods. They have many of the characteristics of goods in that ownership rights over these products can be established and they can be used repeatedly. Whether characterized as goods or services, these products possess the essential common characteristic that they can be produced by one unit and supplied to another, thus making possible division of labour and the emergence of markets. Very common as products whithin the scope of culture: books, CDs, films, etc… Their value is not their material content…

Additional similarities in approaches TSA Explicit recognition that all tourism expenditure is not made only of tourism products; How far to go in considering the production of goods and services part of tourism expenditure as part of tourism production? (case of goods, of capital goods (for the production of goods or services for visitors….) CSA Implicit recognition, in the expenditure account, that all tourism expenditure is not made of products identified as cultural products: inclusion of so called “connected products” But should we go further???

Connected products in CSA “strictly defined” connected products (in line with SNA definition of specific products: those clearly typical of a domain but for which there is no specific interest in analyzing their production process (here to add the fact that although there might be interest, it is not posible because there is no specialized industry to produce it as a significant part of output…): “interdependent” connected products; inputs and capital goods which only use is to be used by cultural “industries”; musical instruments are included here (not considered as specific…., their production is not cultural production…)) “Auxiliary” connected products; they make transmission posible as TV sets, radios, etc… but as sucha, are not recognized as cultural Additionally other products are recognized as part of cultural expenditure, not connected, but n.e.p and used for practices… (no list included…) Culture defined as “those human activities and their products that derive from the creation, production, dissemination, transmission, consumption and appropriation of symbolic contents related to the arts and the heritage”;

Tables TSA tables Table 1 Inbound tourism expenditure by products and classes of visitors Table 2 Domestic tourism expenditure by products and classes of visitors 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 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 CSA tables (Not as formalized, but tp be formalized???) Table 1 Production accounts of cultural sectors by characteristic industries and of total culture Table 2 Cultural establishments according to size; production, employment, value added Table 3 Detailed supply and use balances of cultural specific products Table 4 Imports of cultural specific products Table 5 Exports of cultural specific products Table 6 Expenditure in culture and its sources of financing Table 7 Employment in cultural sectors by forms Table 8 Additional indicators