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Economic Effects of the World Tourism Crisis on Australia

Author

Listed:
  • Larry Dwyer

    (Qantas Professor of Travel and Tourism Economics, University of New South Wales, Sydney, NSW 2052, Australia)

  • Peter Forsyth

    (Department of Economics, Monash University, Clayton, Victoria 3800, Australia)

  • Ray Spurr

    (Centre for Tourism Economics and Policy Research, University of New South Wales, Sydney, NSW 2052, Australia)

  • Thiep Van Ho

    (Centre for Tourism Economics and Policy Research, University of New South Wales, Sydney, NSW 2052, Australia)

Abstract

Within a context of uncertainty over travellers' security, tourism experienced two critical events in 2003 – the Iraq War and SARS. This paper explores the economic effects of the tourism crisis on Australia. While the events resulted in less inbound tourism, they also resulted in a reduction of outbound tourism. The net economic impacts on the nation depend on the extent to which cancelled or postponed outbound travel are allocated to savings, domestic tourism or the purchases of other goods and services. Using a computable general equilibrium model of the Australian economy, simulations of the impacts of the events suggest that the net effects are not as severe as might have been perceived by tourism stakeholders.

Suggested Citation

  • Larry Dwyer & Peter Forsyth & Ray Spurr & Thiep Van Ho, 2006. "Economic Effects of the World Tourism Crisis on Australia," Tourism Economics, , vol. 12(2), pages 171-186, June.
    • Handle: RePEc:sae:toueco:v:12:y:2006:i:2:p:171-186
    DOI: 10.5367/000000006777637467
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    References listed on IDEAS

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    1. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    2. Peter B. Dixon & Mark R. Picton & Maureen T. Rimmer, 2002. "Efficiency Effects of Inter–Government Financial Transfers in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 304-315, September.
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    Cited by:

    1. Lorde, Troy, 2012. "Evaluating the Impact of Crime on Tourism in Barbados: A Transfer Function Approach," MPRA Paper 95544, University Library of Munich, Germany.
    2. Balsalobre-Lorente, Daniel & Driha, Oana M. & Sinha, Avik, 2020. "The dynamic effects of globalization process in analysing N-shaped tourism led growth hypothesis," MPRA Paper 100078, University Library of Munich, Germany.
    3. Betarelli Junior, Admir Antonio & Faria, Weslem Rodrigues & Proque, Andressa Lemes & Perobelli, Fernando Salgueiro & de Almeida Vale, Vinicius, 2021. "COVID-19, public agglomerations and economic effects: Assessing the recovery time of passenger transport services in Brazil," Transport Policy, Elsevier, vol. 110(C), pages 254-272.
    4. Eric Tchouamou Njoya & Marina Efthymiou & Alexandros Nikitas & John F. O’Connell, 2022. "The Effects of Diminished Tourism Arrivals and Expenditures Caused by Terrorism and Political Unrest on the Kenyan Economy," Economies, MDPI, vol. 10(8), pages 1-20, August.
    5. Sadyrbek Kozhokulov & Xi Chen & Degang Yang & Gulnura Issanova & Kanat Samarkhanov & Selvina Aliyeva, 2019. "Assessment of Tourism Impact on the Socio-Economic Spheres of the Issyk-Kul Region (Kyrgyzstan)," Sustainability, MDPI, vol. 11(14), pages 1-18, July.
    6. Apergis Nicholas, 2021. "Forecasting US overseas travelling with univariate and multivariate models," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 40(6), pages 963-976, September.
    7. Forsyth, Peter & Dwyer, Larry & Spurr, Ray & Pham, Tien, 2014. "The impacts of Australia's departure tax: Tourism versus the economy?," Tourism Management, Elsevier, vol. 40(C), pages 126-136.
    8. Egon Smeral, 2019. "Seasonal forecasting performance considering varying income elasticities in tourism demand," Tourism Economics, , vol. 25(3), pages 355-374, May.
    9. Alegre, Joaquín & Sard, Maria, 2015. "When demand drops and prices rise. Tourist packages in the Balearic Islands during the economic crisis," Tourism Management, Elsevier, vol. 46(C), pages 375-385.
    10. Wai Hong Kan Tsui & Faruk Balli, 2017. "International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure," Tourism Economics, , vol. 23(2), pages 403-428, March.
    11. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    12. Ulrich Gunter & Egon Smeral, 2016. "The decline of tourism income elasticities in a global context," Tourism Economics, , vol. 22(3), pages 466-483, June.
    13. Todor Dyankov, 2021. "Tourism Revival – New Horizons After The Pandemia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 36-41, October.

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