Losses in net returns are estimated on the assumption that producer margins in the tourism industry would be 20 per cent. However, considering that the episode is essentially short term, the real losses would be closer to the losses in gross rather than net revenue. The reason is that many costs (labour, hotel overheads, etc.) would still be borne, so the percentage loss to producers would be much greater than 20 per cent. It is only if factors of production displaced in an industry are able to find alternative employment (and hence make a contribution to GDP in other activities) that the normal 20 per cent margin would be relevant. For reporting purposes, however, here the impacts are shown to assume a 20 per cent margin. Again, this approach is likely to understate the total impacts.
Losses in net returns are estimated on the assumption that producer margins in the tourism industry would be 20 per cent. However, considering that the episode is essentially short term, the real losses would be closer to the losses in gross rather than net revenue. The reason is that many costs (labour, hotel overheads, etc.) would still be borne, so the percentage loss to producers would be much greater than 20 per cent. It is only if factors of production displaced in an industry are able to find alternative employment (and hence make a contribution to GDP in other activities) that the normal 20 per cent margin would be relevant. For reporting purposes, however, here the impacts are shown to assume a 20 per cent margin. Again, this approach is likely to understate the total impacts.
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