Tourism is increasingly recognized as a strategic sector for economic growth, employment generation, and regional development. However, its economic contribution is often underestimated in conventional accounting systems due to its multi-sectoral nature. The Tourism Satellite Account (TSA) framework was developed to address this limitation by integrating tourism-related activities within the System of National Accounts. This study applies the TSA framework to estimate the economic contribution of tourism in Andhra Pradesh, one of India’s leading domestic tourism destinations. Using secondary data from government publications, tourism statistics, and economic surveys, the study estimates tourism’s contribution to Gross State Domestic Product (GSDP), employment generation, sectoral linkages, and multiplier effects. The results indicate that tourism makes a substantial contribution to the state economy, with religious, heritage, and eco-tourism segments generating high economic returns. Significant spillover effects are observed across allied sectors such as hospitality, transport, retail trade, handicrafts, and agriculture. The study highlights the importance of institutionalizing TSA at the state level to enable evidence-based policy making, efficient allocation of public resources, and sustainable tourism development. The findings provide valuable insights for policymakers and contribute to the limited body of state-level TSA literature in India.
Kiran et al. (Sun,) studied this question.