Tourism Industry Poised for Transformation as CGE Models Unlock Insights
CGE models are complex tools often used to understand how different changes can impact an economy. This article focuses on using CGE models to study the effects of shocks and policies on the tourism industry. By delving into the technical aspects of these models, researchers can predict which areas of tourism will grow or shrink and how different groups of people will be affected. Up until recently, limited data hindered applying CGE models to tourism economics, but as data quality has improved, these models can now help us better analyze the impact of tourism activities on various economic and social factors.