Supply

The starting point for the calculation of supply is the supply and use tables, which give a detailed accounting of all the industries in the economy and the products they supply. The first step is to discern the industries that supply tourism products to visitors. However, the industry categories provided in the published supply and use tables are not detailed enough for the PTTSA. For example, the supply and use tables display industry estimates only for the total food and beverage industry. The PTTSA needs to split this industry, using information from service industry surveys, into sub-industries since some of these sub-industries may not be included in the tourism account. In this case, two sub-industries within the food and beverage industry are full-service restaurants and caterers. Full-service restaurants are considered a tourism industry and their supply is included in the estimate. Caterers are omitted since they are a non-tourism industry. Similarly, only tourism products remain in the calculation of total supply. In other words, only those products in the full-service restaurants industry that are purchased by tourists are retained (e.g., meals) while non-tourism products are taken out (e.g., legal services).

After the tourism sub-industries and tourism products have been identified, supply shares are calculated. The supply shares are equal to a sub-industry’s portion of the total output for a product within an industry. For example, if two sub-industries each provided one half of an industry’s supply of meals, then the supply shares would equal 50% for these products for each sub-industry. These shares are used later to allocate demand by industry. It should be noted that taxes are added to all supply estimates obtained from the supply and use tables to move the data from producer prices to purchaser prices, thereby matching the pricing used for the demand data.