This study develops a linked regional computable general equilibrium and micro-simulation
(RCGE-MS) model to assess the regional economy-wide and poverty impacts of a US$36
million investment in tourism in the south of Haiti. The first social accounting matrix for Haiti
with a base year of 2012/2013 was constructed to calibrate the model. This research addresses
three key gaps identified in the tourism impact assessment literature. First, a destination-specific
tourism demand and value chain analysis was used to calibrate the shocks implemented in the
model. Second, the RCGE-MS approach moves beyond the representative household
configuration to enable more robust analysis of tourism investment impacts on poverty and
income inequality. Third, results of this modelling were used to inform a social cost-benefit
analysis to provide greater transparency in the evaluation of trade-offs between investment
alternatives. Results of this analysis showed a positive impact on sectoral activity, especially for
the hotel and restaurant sector (182.1% in 2040) and a 2.0% increase in Gross Regional Product
by 2040. The South’s exports fell 4.7% below baseline and imports were 6.1% higher due to the
inflow of foreign exchange, the appreciation of the regional real exchange rate, increased
demand for most goods and services, and limited regional productive capacity. The rate of
unemployment fell from 26% to 23%. The investment helped lift some of the region’s poorest
out of poverty, reducing the poverty headcount by 1.6 percentage points. Driving this result was
an increase in employment, wages and non-labor income. The linked RCGE-MS approach
proves to be a powerful tool for assessing how tourism investments affect regional economic
activity and revealing the mechanisms through which tourism can contribute to increased
employment opportunities and poverty reduction.