Kingscote Airport Business Case Appendices - Kangaroo Island ...

Kangaroo Island Futures Authority Draft Economic Impact of Agriculture and TourismooThe key data were total tourism expenditure by tourism region and averageexpenditure profiles, by region, across a range of goods and services (e.g. foodand drink, fuel, shopping, etc.).Estimates were available for domestic day, domestic overnight andinternational visitor expenditure.• The first significant adjustment to the base data was the application of a more detailedexpenditure breakdown from the ABS Australian National Accounts: Tourism SatelliteAccount, 2011/12 for both domestic and international visitor expenditure (ABS 2011b).• The second significant adjustment to the base data was the conversion of tourismexpenditure estimates from purchasers’ to basic prices (i.e. reallocation of net taxes(taxes minus subsidies) and marketing and transport margins) to make the dataconsistent with accounting conventions used in both the national and regionaltransactions (I-O) tables. Purchasers’ to basic price ratios were derived from ABS(2011b).• The final adjustment to the base data was the allocation of the tourism expendituredata in basic prices to the relevant input-output sectors (66 intermediate sectors,other value added or imports) in which the expenditure occurred, thus compiling aprofile of sales to final demand. This process was undertaken for each type of tourismexpenditure (domestic day, domestic overnight and international visitor) and theresults aggregated to form a single tourism demand profile.Table 2.1Steps undertaken to estimate total tourism sales to final demand for KangarooIsland, 2011/12Base Data and Adjustments $m SourceBase DataTourism expenditure (purchasers' prices) for Kangaroo IslandTourism Research AustraliaDomestic Day 3Domestic Overnight 96International 24Total expenditure 123Allocation to input-output sectorsTourism expenditure (basic prices) for Kangaroo IslandEconSearch analysisSales to final demand 61Other Value Added 7Imports 36Total expenditure 123The data described above were incorporated into a Microsoft Excel® spreadsheet basedeconomic impact model for the region (i.e. RISE v3.0). This type of model allows for descriptionof the structure of the economy. It can also be used for the estimation of economic impactsover time in response to the introduction of a new industry, the impact of an existing industryor a change in the final demand for the output of one or many sectors. Model assumptions canbe modified to account for:• price changes between the model construction year (2011/12) and the base year forthe analysis;e c o n s e a r c hPage| 5