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The Dutch Disease effects on tourism – The case of Australia

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  • Pham, Tien
  • Jago, Leo
  • Spurr, Ray
  • Marshall, Justin

Abstract

Industries in an economy are inter-dependent on each other. However, the relationship among them is not always positive. The recent mining boom in Australia has adversely affected many other non-mining related industries, including tourism, through the effects of resource constraints and a strong appreciation of the exchange rate. This paper examines in detail the mining boom effects on tourism in specific markets such as those for inter-state, intra-state and inbound tourism through the movement of price indexes of each market across states and territories in Australia. Furthermore, while negative impacts on tourism are consistent with the traditional Dutch Disease theory, this paper also highlights an important point to policy makers that strategic planning for investment in accommodation and aviation can have positive impacts on tourism during and after the boom has passed.

Suggested Citation

  • Pham, Tien & Jago, Leo & Spurr, Ray & Marshall, Justin, 2015. "The Dutch Disease effects on tourism – The case of Australia," Tourism Management, Elsevier, vol. 46(C), pages 610-622.
    • Handle: RePEc:eee:touman:v:46:y:2015:i:c:p:610-622
    DOI: 10.1016/j.tourman.2014.08.014
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    References listed on IDEAS

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    1. Robert G Gregory, 2012. "Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), pages 171-200, April.
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    Cited by:

    1. Char-lee Moyle & Fabrizio Carmignani & Brent Moyle & Sajid Anwar, 2021. "Beyond Dutch Disease: Are there mediators of the mining–tourism nexus?," Tourism Economics, , vol. 27(4), pages 744-761, June.
    2. Renuka Mahadevan & Hidayat Amir & Anda Nugroho, 2017. "Regional impacts of tourism-led growth on poverty and income inequality," Tourism Economics, , vol. 23(3), pages 614-631, May.
    3. Hongru Zhang & Yang Yang, 2019. "Prescribing for the tourism-induced Dutch disease: A DSGE analysis of subsidy policies," Tourism Economics, , vol. 25(6), pages 942-963, September.
    4. Hassan F Gholipour & Reza Tajaddini & Usama Al-mulali, 2022. "Dutch Disease phenomenon and demand for international business travels: Panel ARDL/PMG estimation," Tourism Economics, , vol. 28(5), pages 1401-1415, August.
    5. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    6. Pham, Tien Duc & Nghiem, Son & Dwyer, Larry, 2017. "The determinants of Chinese visitors to Australia: A dynamic demand analysis," Tourism Management, Elsevier, vol. 63(C), pages 268-276.
    7. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    8. Saroja Selvanathan & Maneka Jayasinghe & Eliyathamby A. Selvanathan, 2023. "Deteriorating Australia-China relations and prospects for the Australian tourism industry: A dynamic demand analysis," Tourism Economics, , vol. 29(8), pages 2012-2031, December.

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