In 2016, The Mackinac Center for Public Policy published research based on economic modelling that concluded that state-funded destination marketing produced minimal economic benefits and a negative fiscal return on investment. Oxford Economics, through our Tourism Economics team, has reviewed this research and found it to be fundamentally flawed in its assumptions, approach, and therefore, its conclusions. In addition, we asked Dr. Robert Mariano, Professor of Economics Emeritus, University of Pennsylvania, to conduct an independent review.
A peer review of the Mackinac Center for Public Policy paper
Oxford Economics reviews this analysis of the returns on state-funded tourism promotion.
Insufficient econometric evidence. Comments on the Mackinac study.
This note, prepared by Roberto S. Mariano Professor of Economics Emeritus, University of Pennsylvania, focuses on econometric aspects of the study in as much as they impact on the validity of the policy prescriptions inferred from the Mackinac study.