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Research Report: Evaluating Short-Term Tourism Economic Effects in Confined Economies – Conceptual and Empirical Considerations

Given the necessary involvement of government with the tourism product, accountability for government's expenditures of tax dollars is of increasing importance. This paper discusses the literature for three types of analyses that governments can use to ascertain the effectiveness of their spending of tax dollars to promote a tourism destination. The shortcomings and benefits for each method are discussed. Conclusions based on the type of method chosen require that the user understand the specific context, time horizon and their need for the study. For the case study presented in this paper, the context of a confined area, the time horizon of short-term and the need of finding out the economic impact of tourism for Kissimmee/ St Cloud, the I–O/SAM method is deemed optimal. A case study of Kissimmee/St Cloud, along with the results of the economic impact, is presented. Results of the study show that taxpayers are receiving a substantial return on their tax investment for the tax dollars spent.