Download PDF - Anchor Environmental

income from various kinds of taxes and transfers from ROW, which include development assistance;
like the other institutions, government uses its income for purchases of goods and services, transfers,
and saving.
Capital account. The capital account consists of Savings across the row and expenditures for
Investment down the column.
Rest of the World account. The economy’s interactions with ROW are represented in the last row and
column. ROW obtains income from sales of imports (of goods, services and factors) to the domestic
economy; ROW spends income in the domestic economy from its purchase of Botswana’s exports,
the use of Botswana factors of production (labour and capital), transfers and foreign net
borrowing/lending, which constitutes the balance of payments.
Data sources for the SAM
The data sources, adjustments and assumptions used to construct the Basic SAM are described in
(Thurlow 2006). Here, the data used for the expansion of the Basic SAM into the Ramsar site SAM
are described. The Ramsar site SAM required additional data about Agricultural activities and
Tourism activities. Most of this information was collected by surveys described earlier in the report.
The Basic SAM included only one type of accommodation, which was combined with Restaurants, in
the single product/activity category, Hotels & restaurants. This industry, Hotels & restaurants, was
split by estimating the input structures for each component based on analysis done for a similar
Namibian study. Then input structures for the remaining categories of tourism-related activities were
estimated partly from surveys conducted in the Delta and partly based on more detailed information
collected in an earlier Namibian survey by Anton Cartwright for a study of Community-Based Natural
Resources Management. The input structures provided information on intermediate consumption of
goods and services, as well as labour inputs, operating surplus, and rents/royalties paid to
communities for use of land in communal areas.
SAM Multiplier Model for Tourism
The SAM itself is simply a database that provides a ‘snapshot’ of the economy at a point in time. To
use this database for analysis, the SAM must be transformed into a model. SAMs are used in many
types of economic models, but the two most common approaches to SAM-based modelling are
multiplier analysis and computable general equilibrium (CGE) modelling. Multiplier analysis is used
either to analyse the present economy to gain a better understand of the linkages, or for impact
analysis of the effect of policy change under the assumption that prices, consumption and trade
coefficients remain constant. For analysis of changes or estimates of policy impacts, multiplier
analysis can also be useful, although CGE models are often used because they are better able to
estimate the behavioural response of different groups to changes.
For this study, the contribution of Okavango Delta activities to the Botswana economy in 2005,
multiplier analysis is appropriate. The multiplier analysis used accounting multipliers (Pyatt & Round
1985):
(1) x = Ax + y
−1
(2) x = ( I − A)
y
Where
x is a vector of outputs for every component of the SAM
y is a vector of exogenous demands for goods and services. Enterprises, government, investment
and exports are treated as exogenous sectors.
I is an identity matrix, a square matrix with 1’s along the diagonal and 0’s everywhere else
A is a matrix of coefficients for the endogenous sectors. Coefficients are calculated by dividing each
entry in a given SAM column, j, by the sum for that column, (x j ). This matrix includes all income
122