Quantifying the Multiplier Effect of the Hospitality Sector
Quantifying the Multiplier Effect of the Hospitality Sector

Author(s): Aleksandar Trajkov, Jovanka Biljan
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Multiplier; Hospitality; Tourism; Input; Output; Macedonia
Summary/Abstract: This research examines the economic impact of tourism in N. Macedonia, focusing on the hospitality sector (hotels and restaurants). Using Symmetric Input-Output (SIOT) tables, the study quantifies the multiplier effect by analyzing the direct and indirect impacts of the hospitality sector on the national economy. The study reveals that the hospitality sector has the highest multiplier (2.293) compared to all other sectors, underscoring its crucial role in stimulating economic activity. A change in tourist expenditure within this sector triggers a significant ripple effect, generating increased demand for goods and services across various industries that support the hospitality sector. This finding highlights the importance of creating a prosperous and sustainable hospitality sector. Policymakers and industry stakeholders can use its high multiplier effect to promote economic growth and development across a wide range of interconnected industries within the national economy.

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