Domestic Tourism and Regional Inequality in Brazil

This paper analyses the consumption patterns of tourists from different domestic origins and choosing different domestic destinations in Brazil in terms of their expenditure level and composition. The authors also look at the various alternatives for financing tourist expenditures and their implications for the net multipliers in an integrated framework. The paper uses survey data for domestic tourism in Brazil to consolidate an interregional matrix of expenditures by tourists and then employs an interregional input– output system for Brazil to compute the tourism multiplier effects based on alternative hypotheses for the sources of financing of tourist expenditures. The results are analysed and their implications for regional inequality in the country are discussed.