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The Uses and Abuses of Multpliers: a Current Case

University of New Orleans

Economic multipliers have been used for decades to assess the total impact of tourism spending. This multiplier concept is well grounded in economic theory and has gamered the attention of some of the best hospitality researchers. Its use is widespread among academics and practitioners alike. Yet, in spite of all this, the multiplier concept is still "used and abused" (Archer, 1973) today. This research discusses a case where multipliers were used incorrectly to determine the total impact of the convention, exposition, and meetings industry along with how we in hospitality may overcome this shortcoming.

Key Words: Key words: multiplier • economic impact, Keynesian economics • regional income • conventions.

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