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Concepts and definitions

Basic price

Basic price is a price concept in the national accounts. The basic price is the price receivable by the producers from the purchaser for a unit of a good or service produced as output, minus any tax payable on that unit as a consequence of its production or sale (i.e. taxes on products), plus any subsidy receivable on that unit as a consequence of its production or sale (i.e. subsidies on products). It excludes any transport charges invoiced separately by the producer. It includes any transport margins charged by the producer on the same invoice, even when they are included as a separate item on the invoice. (subsidies on products).

Business trip

The category of business and professional trips comprises all business and professional activities outside the usual environment. The visitor takes the professional trip because of requirements related to his/her occupation or the economic activity of the production unit for which he/she works. This category includes sales to foreign enterprises, attending meetings, conferences or congresses, trade fairs and exhibitions, employer incentive tours, etc. Usually it is the employer who pays the costs for business trip.

In the Finnish Travel survey this category of trips goes under the heading 'Business/conference'.

Domestic tourism

Domestic tourism comprises the activities of residents of a given country travelling to and staying in places inside their residential country, but outside their usual environment for not more than 12 consecutive months for leisure, business or other purposes.

Domestic trip

A domestic trip is a trip made by a resident of a given country within his/her residential country, and outside his/her usual environment. The maximum duration of trip is 12 consecutive months.

The definition of domestic trip is derived from the World Tourism Organization's (WTO) definitions for 'Domestic tourism' and 'Domestic visitor'.

Duration of trip

Duration of trip refers to the time spent during a visit measured from the standpoint of the generating country or place. A trip begins when leaving home and ends when returning home. By duration trips are classified into two main categories: same-day visits and overnight trips. The maximum duration for overnight trips is 12 consecutive months. The maximum duration for same-day visits is less than 24 hours, so that departure and return takes place within the same calendar day and no nights are spent during the trip.

Employment

Employment covers all persons – both employees and self-employed – engaged in some productive activity that falls within the production boundary of the system.

Final consumption expenditure

Final consumption expenditure consists of expenditure incurred by resident institutional units on goods or services that are used for the direct satisfaction of individual needs or wants, or the collective needs of members of the community. Final consumption expenditure may take place on the domestic territory or abroad. Final consumption expenditure is incurred by households, non-profit institutions serving households and general government. Non-financial corporations, financial and insurance corporations do not have final consumption expenditure.

Gross domestic product

GDP, gross domestic product at market prices is the final result of the production activity of resident producer units. It can be defined in three ways: as the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products; as the sum of final uses of goods and services by resident institutional units (final consumption, gross capital formation, exports minus imports); as the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and gross mixed income). (ESA 1995 8.89.)

Intermediate consumption

Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital. The goods and services may be either transformed or used up by the production process.

Products used for intermediate consumption should be recorded and valued at the time they enter the process of production. They are to be valued at the purchasers’ prices for similar goods or services at that time.

Internal tourism

Internal tourism comprises "domestic tourism" of residents of a given country and "inbound tourism" of non-residents to that country.

International tourism

International tourism comprises "inbound tourism" (non-residents' visits to a given country) and "outbound tourism" of residents of a given country (residents' visits abroad).

International tourism expenditure

International tourism expenditure is defined (by the World Tourism Organization, WTO) as expenditure of outbound visitors in other countries including their payments to foreign carriers for international passenger transport. It also includes any other payments or payments afterwards made for goods and services received in the country of destination. The definition is more extensive than that of the travel expenditure in the Balance of Payments in which international passenger transport is not included.

International tourism receipts

International tourism receipts are defined (by WTO) as expenditure of international inbound visitors including their payments to national carriers for international transport. They also include any other payments or payments afterwards made for goods and services received in the destination country. The definition is more extensive than that of the travel expenditure in the Balance of Payments in which international passenger transport is not included.

Leisure trip

A leisure trip refers to the purpose and motive of a visit. Trips (visits) for leisure, recreation and holiday purposes outside the usual environment are mainly undertaken for relaxation. It is the visitor who decides to take the tourist trip as an activity unconnected with his/her occupation, and the trip is usually financed out of household funds.

In the Finnish travel survey all trips that do not come under the category of 'Business/congress trips' are considered leisure trips. This category covers trips to own holiday home, visits to friends and relatives, as well as leisure cruises and same-day visits.

Outbound tourism

Outbound tourism comprises the activities of residents of a given country travelling to and staying in places outside their country of residence and outside their usual environment for not more than 12 consecutive months for leisure, business and other purposes.

Output at basic prices

Output at basic prices consists of the products which have been produced in the accounting period. Three categories of output are distinguished: market output, output for own final use, and other non-market output. Output is to be recorded and valued when it is generated by the production process.

Overnight trip

An overnight trip refers to a trip outside the usual environment, during which at least one night is spent in private or collective accommodation either for free or for a charge. The maximum duration of a trip is 12 consecutive months.

In the Finnish Travel survey an overnight trip is a statistical unit to measure the volume of overnight tourism. The duration of a trip is measured by the number of nights spent during it. Overnight travelling by boat/ferry, train or other vehicles is included in the total number of nights spent during the trip.

Purchasers' price

The purchaser’s price is the price the purchaser actually pays for the products; including any taxes less subsidies on the products (but excluding deductible taxes like VAT on the products); including any transport charges paid separately by the purchaser to take delivery at the required time and place; after deductions for any discounts for bulk or off-peak-purchases from standard prices or charges; excluding interest or services charges added under credit arrangements; excluding any extra charges incurred as a result of failing to pay within the period stated at the time the purchases were made.

Same-day visit

Same-day visits concern the activities of visitors who do not stay overnight in collective or private accommodation in the place (region, country) visited.

A same-day visit can be headed abroad (international same-day visit) or to the domestic country (domestic same-day visit). The definition of a same-day visit is derived from the World Tourism Organization's (WTO) definition for a same-day visitor, and it is also used in the EU tourism statistics.

Same-day visitor

Same-day visitor refers to a visitor who does not spend the night in a collective or private accommodation in the place visited. An international same-day visitor is an international visitor who does not spend the night in the country visited. A domestic same-day visitor is a domestic visitor who does not spend the night in the place visited.

A same-day visitor stays less than 24 hours in the place/country visited, the arrival and the departure takes place within the same calendar day. Same-day visitors are also such cruise passengers who spend the night on board a ship and visit the destination place/country without overnighting there. In this case, ship is the place of departure of the same-day visitor.

Taxes on production and imports

Taxes on production and imports (D.2) consist of compulsory, unrequited payments, in cash or in kind which are levied by general government, or by the Institutions of the European Union, in respect of the production and importation of goods and services, the employment of labour, the ownership or use of land, buildings or other assets used in production. These taxes are payable whether or not profits are made.

Taxes on production and imports are divided into:

a) taxes on products (D.21)

(1) value added type taxes (VAT) (D.211)

(2) taxes and duties on imports excluding VAT (D.212)

– import duties (D.2121)

– taxes on imports excluding VAT and import duties (D.2122)

(3) taxes on products, except VAT and import taxes (D.214)

b) other taxes on production (D.29).

Tourism

Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than 12 consecutive months for leisure, business and other purposes.

Tourism expenditure

Tourism expenditure refers to the total consumption expenditure made by a visitor, or on behalf of a visitor for goods and services during his/her trip and stay at the destination place (country). It also includes payments in advance or after the trip for services received during the trip. Payments for domestics or international passenger transport are also included in tourism expenditure (cf. Travel accounts in the Balance of Payments).

Tourist

A tourist (overnight visitor) is a visitor who stays at least one night in a collective or private accommodation in the place visited. An international tourist is an international visitor who stays at least one night in the country visited. A domestic tourist refers to a domestic visitor who stays at least one night in the place visited.

A visitor who does not spent one night during the trip is called same-day visitor.

Trade margins

The output of wholesale and retail services is measured by the trade margins realised on the goods they purchase for resale. A trade margin is the difference between the actual or imputed price realised on a good purchased for resale and the price that would have to be paid by the distributor to replace the good at the time it is sold or otherwise disposed of.

Travel accounts

In the Balance of Payments (BOP), travel covers primarily the goods and services acquired from an economy by a traveller during visits of less than one year in that economy. It includes the goods and services purchased by, or on behalf of, the traveller or provided without a quid quo pro for the traveller to use or give away. Included are payments made for goods and services in advance or afterwards. Excluded is the international carriage of travellers, which is covered (in the BOP) in passenger services under transportation (cf. the general definition of Tourism expenditure).

As an item in the BOP, Travel accounts indicate the ratio between the receipts and expenditure of international tourism of a given country. The balance is positive when receipts from non-resident tourists (credit) are bigger than the expenditure of resident tourists abroad (debit). The balance is negative when debit exceeds credit.

Trip

As a statistical unit of tourism, a trip depicts tourism from the standpoint of the generating place or country (the origin) and covers the whole period a person travels away from home (origin-based perspective).

Trip abroad

A trip (visit) abroad refers to a trip made by a resident of a given country outside the national borders of his/her country of residence and outside his/her usual environment for leisure, business or other reason. The maximum duration of stay in the destination country is 12 consecutive months. A trip is an operational statistical unit of outbound tourism and it is derived from the World Tourism Organization's definitions of 'outbound tourism' and 'international visitor'.

Value added

Value added (gross) refers to the value generated by any unit engaged in a production activity. In market production it is calculated by deducting from the unit's output the intermediates (goods and services) used in the production process and in non-market production by adding up compensation of employees, consumption of fixed capital and possible taxes on production and imports.

Visitor

A visitor is any person travelling to a place other than his/her usual environment and staying there for no longer than 12 consecutive months and whose main purpose of travel is other than the exercise of an activity remunerated from within the place visited. The term visitor (domestic and international) comprises tourists and same-day visitors.

In this connection remuneration refers to salary/wages or similar pay except for travelling expenses, daily expense or other minor compensations.

Referencing instructions:

Statistics: Tourism account [e-publication].
ISSN=1798-1506. Helsinki: Statistics Finland [referred: 28.3.2024].
Access method: http://www.stat.fi/til/matp/kas_en.html