This study constructs a panel data 2003 and 2007, a social accounting matrix (SAM) and a
computable general equilibrium model (CGE) in 2007 to investigate the effect of tourism on
household income, poverty reduction and income distribution at the village level in Thailand.
It conducted a census of 116 households in a particular village. There are three focuses. First,
it examines the determinants of participation in tourism sector. Second, it investigates the
effect of participation in tourism activities on household income change and poverty exit.
Third, it simulates the direct and indirect effects of tourism price increase on income
generation and income distribution in the village.
In the first focus, the determinants of participation in terms of working hours vary among
economic sectors. Villagers operating homestay, accommodations for tourists, stay within 1
km from village center, got tourism income in 2003 and got an increase in household
members during 2003 – 2007. Households attending core tourism, e.g. trekking guide and
cultural show, also stay closer to the village center and got tourism income in 2003.
Moreover, their heads of households get better education. The pools of human capital in
households are also larger. For the participation in tourism-induced sector, e.g. souvenir
production and coffee shop, education plays significant role in terms of education of the
heads of households, average schooling years of household members and size of human
capital in households. Households with an increasing number of members and older people
are advantage in joining this sector. For other non-tourism sectors, education is also
important for the participation in commercial sector. However, education is less important for
households joining agricultural sector, agricultural labor service and non-agricultural labor
service