Definition: Price indices on tourism from the supply side
Tourism price indices from the supply side measure changes over time of the cost of producing tourism products. The measurement of the changes in the cost of production for the tourism sector as a whole or by activity can be achieved by measuring changes in prices of the main cost elements.
The main cost elements are:
· Intermediate consumption, which represents the value of the goods (other than fixed capital goods) and market services consumed by production units during the course of the relevant period in order to produce goods and services related to tourism.
· Remuneration of factors of production.
· Depreciation of fixed capital. The measurement of the changes in this cost element is achieved indirectly by measuring the changes in prices of goods and services contributing to fixed capital formation.
Eurostat, "Methodological manual on the design and implementation of surveys on inbound tourism", Office for Official Publications of the European Communities, Luxembourg, 2000, Appendix A, Classification and Glossary