expenditure. The data on these purchases of households is generally available in the balance of payments accounts. These adjustment entries are needed only when household final consumption expenditure is compiled from sources other than a household expenditure survey, especially the retail sales surveys. Further, if the data on imports and exports used in national accounts already includes these expenditures (in some countries, the BoP statistics already include such expenditures under import and export of services), no further adjustments are necessary. The ICP recommends that these net purchases of households be allocated against individual products (basic headings) under household final expenditure. Guidance for this is available if countries have compiled tourism satellite accounts (TSA). If not, the tourism characteristic or tourism connected products could be chosen for allocation of these expenditures. However, expenditures of foreigners who meet the criteria of of households’ ‘residence (being present for one year or more in a territory orintending to do so is sufficient to qualify as resident in the economic territory)and their expenditures should be recorded under household final consumption expenditure. Services of owner occupied dwellings The imputed value of housing services provided to owner-occupiers can be estimated on the basis of the rentals that would be paid on the market for accommodation of comparable size, quality and type. However, where few dwellings (Less than 25% of all dwellings) are rented, rents actually paid cannot be regarded as typical and the standard procedure cannot be applied. When the standard procedure cannot be used (when more than 75% of the houses are owner occupied), the suggestion is to estimate expenditure on dwellings by the user cost approach. The user cost approach consists of estimating each of the expenditures that owners of dwellings would need to take into account in fixing a market rent if they decided to rent their dwellings to other people rather than to live in them, that includes the net return on the owners’ capital (which can be estimated by applying an interest rate to the estimated value of dwellings; the interest
expenditure. The data on these purchases of households is generally available in the balance of payments accounts. These adjustment entries are needed only when household final consumption expenditure is compiled from sources other than a household expenditure survey, especially the retail sales surveys. Further, if the data on imports and exports used in national accounts already includes these expenditures (in some countries, the BoP statistics already include such expenditures under import and export of services), no further adjustments are necessary. The ICP recommends that these net purchases of households be allocated against individual products (basic headings) under household final expenditure. Guidance for this is available if countries have compiled tourism satellite accounts (TSA). If not, the tourism characteristic or tourism connected products could be chosen for allocation of these expenditures. However, expenditures of foreigners who meet the criteria of ‘residence of households’ (being present for one year or more in a territory orintending to do so is sufficient to qualify as resident in the economic territory)and their expenditures should be recorded under household final consumption expenditure. Services of owner occupied dwellings The imputed value of housing services provided to owner-occupiers can be estimated on the basis of the rentals that would be paid on the market for accommodation of comparable size, quality and type. However, where few dwellings (Less than 25% of all dwellings) are rented, rents actually paid cannot be regarded as typical and the standard procedure cannot be applied. When the standard procedure cannot be used (when more than 75% of the houses are owner occupied), the suggestion is to estimate expenditure on dwellings by the user cost approach. The user cost approach consists of estimating each of the expenditures that owners of dwellings would need to take into account in fixing a market rent if they decided to rent their dwellings to other people rather than to live in them, that includes the net return on the owners’ capital (which can be estimated by applying an interest rate to the estimated value of dwellings; the interest
AnxC.docx