Quantifying the Multiplier Effect of the Hospitality Sector

Aleksandar Trajkov – University St. Kliment Ohridski Bitola, Faculty of Tourism and Hospitality Ohrid, Kej Makedonija 95, 6000. Ohrid, North Macedonia

Jovanka Biljan – University St. Kliment Ohridski Bitola, Faculty of Tourism and Hospitality Ohrid, Kej Makedonija 95, 6000. Ohrid, North Macedonia

Abstract: This research examines the economic impact of tourism in N. Macedonia, focusing on the hospitality sector (hotels and restaurants). Using Symmetric Input-Output (SIOT) tables, the study quantifies the multiplier effect by analyzing the direct and indirect impacts of the hospitality sector on the national economy. The study reveals that the hospitality sector has the highest multiplier (2.293) compared to all other sectors, underscoring its crucial role in stimulating economic activity. A change in tourist expenditure within this sector triggers a significant ripple effect, generating increased demand for goods and services across various industries that support the hospitality sector. This finding highlights the importance of creating a prosperous and sustainable hospitality sector. Policymakers and industry stakeholders can use its high multiplier effect to promote economic growth and development across a wide range of interconnected industries within the national economy.

10th International Scientific Conference ERAZ 2024 – Conference Proceedings: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT,  hybrid – online, virtually and in person, Lisbon, Portugal, June 6, 2024

ERAZ Conference Proceedings published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Logistics, University of Maribor, Maribor (Slovenia); University of National and World Economy – UNWE, Sofia (Bulgaria); Center for Political Research and Documentation (KEPET), Research Laboratory of the Department of Political Science of University of Crete (Greece); Institute of Public Finance – Zagreb (Croatia); Faculty of Tourism and Hospitality Ohrid, University of St. Kliment Ohridski from Bitola (North Macedonia)

ERAZ Conference 2024 Conference Proceedings: ISBN 978-86-80194-86-8, ISSN 2683-5568,

DOI: https://doi.org/10.31410/ERAZ.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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