Program and Development Research

Program and Development Research

The Effects of Tourism Expenditures on Production and Employment in South Khorasan Province: A Regional Input-Output Approach

Document Type : Original Article

Authors
1 Associate Professor of Economics - Department of Economics, University of Sistan and Baluchestan
2 Masters Graduate in Economics- Faculty of Economics and Administrative Sciences, University of Sistan ‎and Baluchestan, Zahedan, Iran.‎
3 Masters Graduate in Economics -Faculty of Economics and Administrative Sciences, University of Sistan ‎and Baluchestan, Zahedan, Iran.‎
Abstract
This study estimates the direct and indirect effects of domestic tourism expenditures on production and employment in South Khorasan Province of Iran, in 2016 using a 15-sector regional input-output table constructed via the Augmented Flegg Location Quotient (AFLQ) method. Results indicate that tourism expenditures increased total provincial production by 24.29 billion rials and created 2,956 jobs, representing approximately 1.8% of provincial GDP and 1.5% of total employment. The most significant impacts were observed in transportation/wholesale-retail, hotel and restaurant, and agriculture-related industries. Of the total employment in the tourism sector in various economic sectors of the province, the "Transportation and Wholesale and Retail" sector ranks first with 1,369 people. The "Hotel and Restaurant", "Agricultural Industries" and "Health" sectors are in the next ranks with 632, 484 and 136 people respectively, and have the highest employment from tourist arrivals in South Khorasan Province. This research provides a quantitative foundation for regional tourism policy.
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Articles in Press, Accepted Manuscript
Available Online from 18 May 2026