Informing tourism policy with statistical data: the case of the Icelandic Tourism Satellite Account

The Tourism Satellite Account (TSA) is a popular internationally recognized method for measuring tourism's contribution to the economy. The credibility and visibility of tourism as a distinct economic activity are, therefore, based on TSA data which have the power to show its macroeconomic importance. According to the most recent World Tourism Organization study, 60 countries around the world implemented TSA in one way or another in 2010. However, in the same year, a research carried out by the Organization for Economic Co-Operation and Development revealed that the usage of TSA for tourism policies is rather limited due to specific issues, such as the lack of knowledge about TSA, inadequate international comparability, and timeliness. This paper illustrates several possibilities of using enhanced TSA estimates in the Icelandic context for informing tourism policies. Specific examples are presented of developing data on tourism-related investment (Tourism Gross Fixed Capital Formation) and governmental consumption for selected collective services related to tourism (Tourism Collective Consumption). These improve the usefulness of the TSA as a statistical instrument for sound tourism policies.