Evaluating the Economic Viability of Public Investments in Tourism. Issue 1 (5th November 2019)

• Record Type: Journal Article
• Authors: Banerjee, Onil; Cicowiez, Martin; Moreda, Adela
• Is Part Of: Journal of benefit-cost analysis. Volume 11:Issue 1(2020)
• Page Start: 101
• Page End: 130
• Publication Date: 2019-11-05
• Subjects: cost-benefit analysis, -- dynamic computable general equilibrium model, -- ex ante economic impact analysis, -- public investment analysis, -- tourism, -- Uruguay, -- welfare economics.; Z3, -- C68, -- D61, -- O1, -- O2, -- O5; Cost effectiveness -- Periodicals; 658.1554
• DOI: 10.1017/bca.2019.32
• Languages: English
• ISSNs: 2194-5888

Abstract

Abstract: Various methods have been applied to evaluating the economic viability of public investments in tourism. In this article, we capitalize on the strengths of computable general equilibrium and cost-benefit analytical techniques and develop an integrated approach to evaluating public investments in tourism. We apply the approach to the evaluation of a US$6.25 million investment in tourism in Uruguay from the perspective of a multilateral development bank and a beneficiary government. These perspectives differ in a cost-benefit analysis (CBA) due to the timing of the costs incurred. The integrated approach is powerful in that it captures first and subsequent rounds of investment impacts of benefits and costs; resource diversion and constraints are accounted for, and the estimation of benefits is consistent with the welfare economics underpinnings of CBA.