1. PROVIDING NEW EVIDENCE ON TOURISM TRADE IN VALUE-ADDED
Jane Stacey, Head of Tourism Unit, OECD
15th Global Forum on Tourism Statistics, November 2018, Cusco

2. Why is measuring tourism trade in value added important for policy?
Tourism is one of the main economic sectors benefitting from globalisation - however, tourism trade flows are not well captured by current tourism statistics
Need new indicators better tuned to the reality of globalisation, to
Understand how much tourism adds to economies, and how
Better capture the role of tourism services in international trade and the risks from global value chains
Support the national and international policy debate (e.g. Tourism Committee, trade discussions, T20) 
Growing fragmentation of international production means that only using gross trade flows (including, equivalently, gross non-resident expenditures) gives an incomplete picture of globalization
TiVA aims to increase our understanding of the process of globalization by providing insights into the value added created by each country in the production of goods and services that are traded and consumed worldwide
How much value added is created by trade – directly and indirectly – and where?
Role of services in international trade
Better understanding of risks (in GVCs) and impact of policy measures

3. Tracing the value added content of tourism exports – an example
Tourism exports in country A may be dominated by large tour operators with a high level of foreign content
Package tour may require significant parts – transport, food and beverages, travel agency services – produced in other countries
These countries will use intermediate inputs imported from other countries to produce the parts exported to “A”
=>The TiVA approach traces the value added by each industry and country in the production chain and allocates the value-added to these source industries and countries
….. leading to a significant fall in its domestic value added

4. Non-resident expenditure
Analysing domestic value added at national level – the case of Canada and UK
Domestic value added content
Imported value added content
Domestic value added content of non- resident expenditure is higher compared with overall exports
Exports
Non-resident expenditure
In Canada, 1 CAD of non-resident expenditure generates 81 cents of value added
(exports generate 71c)
In the UK, 1 GBP of non-resident expenditure generates 82 pence of value added
(exports generate 74p)

5. Industries breakdown in gross v value added terms – Canada and the UK
Importance of selected industries in non-resident expenditures and value added terms
CANADA
UNITED KINGDOM
Gross expenditure
Value added
Gross expenditure
Value added

6. Tourism indirectly generates domestic value added in upstream industries
CANADA
In Canada, each CAD of direct value added generated by non-resident expenditure generates an additional 70 cents of upstream value added
UNITED KINGDOM
In the United Kingdom, each GBP of direct value added generated by non-resident expenditure generates an additional
48 cents of upstream value added

7. Analysing domestic value added at international level using the ICIO
Sources of value added in non-resident expenditure
Domestic value added shares of non-resident expenditure and total exports
Source: OECD Inter-Country Input-Output, 2018 (forthcoming, December 2018).

8. Upstream impacts of tourism expenditure
On average, 1 € of VA in tourism related industries results in 61 cents VA in upstream industries, distributed as follows
Source: OECD Inter-Country Input-Output, 2018 (forthcoming, December 2018).

9. Foreign value added by source region in non-resident expenditure
Across OECD countries, around 11% of tourism expenditures result in value created in other countries (i.e. imported value added)
Source: OECD Inter-Country Input-Output, 2018 (forthcoming, December 2018).

10. Limitations and challenges
Non-resident expenditures do not fully align with inbound tourism expenditures in the TSA and IRTS 2008
Business tourism expenditure is not captured, as it is a component of intermediate (not final) consumption
Domestic tourism estimates challenging, as difficult to isolate expenditure by residents on tourism
Breakdown of non-resident expenditure by product not available in supply-use or input-output tables in most countries
TSA data can be used to estimate this breakdown – but level and detail of expenditure data in TSA not sufficient
Coverage and completeness of national statistics varies considerably

11. Toward better measuring tourism trade in value added
Clear opportunities exist to expand work to bring new insights on the direct and indirect economic impact of tourism
Strong engagement indicates the topic is of high interest to many countries, but there are data and resource challenges
Realising this potential will require action at both national and international level to improve the statistical framework
Important scope for additional analysis – but this requires more detailed information consistent with national accounts
Impact on jobs and wages, role of SMEs and domestic/ foreign owned businesses in GVCs, carbon emissions from tourism trade
Raising awareness of the opportunities which exist will be important to secure necessary support and resources

12. Statistical work needed to make progress
Greater granularity in national supply and use tables
including improvements in the breakdown of non-resident expenditure by product
Improvement of the coverage and quality of the Travel item in Trade in Services statistics
including more detailed service category breakdowns, full partner country details, address trade asymmetry for travel
Improvement of the TSA data
including more detailed statistics on expenditures by product and ISIC classification breakdown
Better alignment and timeliness of various data sources

13. Issues for discussion
Is there interest to develop a longer term statistical agenda on this, and what is feasible?
What type of analysis would be of most use to policy makers?
What role is there for the OECD to support this?
How to mobilise the necessary political support and resources?