The importance of inter-linkages between market sectors in the tourism industry

Abstract

The tourism industry has been one of the major components in the Maltese economy for he past two decades. The importance to enhance and maximise the revenue from tourism has been one of the main focuses of the Maltese Governments in the past decade. The studies done by MTA in the past five years have helped to recognise the strengths and weaknesses of our tourist industry. The revenue of tourism will have multiple impacts through the multiplier. The significance of these impacts will depend mostly on inter-linkages and their effectiveness to prevent leakages. This study has analysed these methodologies and the results of these researches. The importance of inter-linkages in the tourism industry will emerge in a very significant way. The expenditure of tourists and the costs of the different sectors will be analysed so as to trace the main leakages of revenue from our economy. Interviews with experts working in the tourism industry have been carried out, in order to get a feed back from first-hand experience. Inter-linkages are proven to be present and have a major effect on the Maltese economy. Network, both horizontal and vertical, between companies has emerged to be present, even though the benefits of such cannot be quantified The theory behind this network will also be analysed.