The main contributors are Runchana Pongsaparn (APD) and Dominic Mellor (AsDB).
By contrast, the value of fish exports, which as the second most important commercial activity account for about 50 percent of Samoa’s goods export, was only about 4 percent of that of tourism receipts in 2008.
Samoa’s national accounts data do not provide data on the tourism value-added as related spending cuts across various sectors. The estimates are based on: (1) the imputed value-added used for VAT tax assessments in the hotel and restaurant sector (about 45–49 percent of gross receipts), and (2) cross-country experience suggesting that for small island economies, such as Samoa, the direct and indirect value-added (embedded in domestically produced intermediate goods provided to the tourism sector) is about 70 percent of gross tourism expenditure. This is in line with the total direct and indirect value added of around 70–80 percent of gross tourism expenditure in the case of Tonga, the Maldives, and Fiji in 2008 (based on World Tourism and Trade Council data) and around 80 percent in the case of the Canary Islands in 1992 (see Martin, R. H. (2004), “Impact of Tourism Consumption on GDP. The Role of Imports,” Fondazione Eni Enrico Mattei, Working Paper No. 2004.27). Separately, AsDB estimates an economic multiplier of 0.7 for every tala spent by tourists. (“Taking the Helm: A Policy Brief on a Response to the Global Economic Crisis,” Asian Development Bank, 2009).
Aside from the southern hemisphere months of June/July, the official country data also show a sharp increase in holiday-makers during December which is inconsistent with the out-of-country data from New Zealand. Much of this may be explained by classification, for example, an overseas Samoan may be leaving New Zealand for ‘holiday’ purposes to ‘visit friends and family’ in Samoa. There are also significant numbers of Samoans that reside in American Samoa that return home on ‘holiday’ during December.
This is consistent with the first-year tourism earnings loss of 16.5 percent on average for Indonesia, the Maldives, and Thailand.
With around 6 percent of formal sector employment in hotels and restaurants, the tsunami is likely to result in significant economy-wide job losses that may only be partially offset by jobs generated through reconstruction activities.
The main contributor is Runchana Pongsaparn (APD).
World Bank data (2008).
See Espinosa-Vega and Rebucci (2003). The dynamic reduced form model postulates the relationship between the policy rate and lending (deposit) rate. The econometric specification is given by lendingt = α0 + α1trend + α2 policyt + α3 lendingt-1 + α4 policyt-1 + εt. The long-run interest pass-through is measured by (α2 + α4)/(1-α3).
See IMF (2009), Regional Economic Outlook: Asia and Pacific, October 2009.
The main contributor is Dominic Mellor (AsDB).
Samoa has significant hydropower resources which constitute around 50 percent of power generation, depending on water availability in the catchment area. The remainder of power generation is derived from diesel-fired power generation.