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Tourism industry profitability

A measure of tourism industry profitability allows for more in-depth alternative analysis of the tourism sector. This measure provides time-series data on variables at an industry level, allowing comparison across time, within an existing industry, and across industries.

Table 13 and figure 8 show gross operating surplus as a percentage of total tourism output for tourism industries and for all non-tourism-related industries. It is one measure of tourism profitability, but reflects economic rather than accounting concepts. Data is presented up until the latest balanced supply and use year.

Gross operating surplus is before the deduction of interest and economic depreciation.

Table 13

Tourism gross operating surplus as a percentage of total tourism output, year ended March 2005–09.

Points to note from table 13:

  • The profitability of tourism-characteristic industries (total) was lower than tourism-related and all non-tourism-related industries for the year ended March 2009.
  • The ‘rental and hiring services’ and ‘other transport, transport support, and travel and tour services’ industries each recorded significantly higher profitability ratios than other tourism industries. Typically, these industries require less labour than capital for the provision of goods and services.
  • Comparing the broad tourism-characteristic industry categories for the year ended March 2005 with 2009, only air passenger transport decreased its profitability ratio.

Figure 8

Tourism gross operating surplus as a percentage of total tourism output, year ended March 2005–09.

 

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