The Tourism multiplier as a measurement of the contribution to national income

The flow of money generated through tourism receipts can be traced by the multiplier effect, showing the relationship between consumption and income. Each time there is a change in income the multiplier shows the number of times such income is likely to be re‐spent and how much new income will be generated. Since “any change in any spending has a multiplier effect” it is possible to formulate a tourism multiplier.