An Empirical Study on Relative Income Determination of Tourism Industries with Social Accounting Matrix of Jiangsu Province, China in 2002

Previous research on the relative income determination of tourism industries with social accounting matrix modeling technique is still lacking. The paper sets up the 2002 Tourism Social Accounting Matrix (TSAM-2002) in Jiangsu Province in China while using different data sources. Then, the paper uses the relative income determination model and the additive decomposition of the distribution measurement by Roland-Holst and Sancho (1992) to quantitatively measure the relative income distribution among the tourism industries, or among the tourism industries and non-tourism industries, as well as the income distribution between tourism industries and the urban residents at different income levels. The data show that the contribution from tourism industries to non-tourism industries was insufficient, but non-tourism industries brought more redistributed income to tourism industries in Jiangsu Province in 2002. Furthermore, tourism industries brought more relative income to urban residents at high-income levels and so on. Finally some policy suggestions are proposed.