Economic benefits from increased tourism activity are distinct from the other wider economic benefits, which relate to supply-side improvements that lift economic output. For example, by increasing the size of the labour force or increasing the productivity of existing firms and workers.
Tourism benefits, by contrast, arise due to changes in demand for goods and services produced in New Zealand. An increase in international tourist activity in New Zealand can be thought of as an increase in New Zealand’s exports. The economic benefits of this increase in demand relate to the resulting increase in New Zealand’s total economic output, that is, its gross domestic product or gross national income.
This benefit may overlap with 6.2 Wider economic benefit (employment impact) and caution should be observed to avoid double-counting.
6.2 Wider economic benefit (employment impact)
This benefit can be monetised.
For information about how to monetise this benefit see the Monetised benefits and costs manual.
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