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Impacts of High Oil Prices on Tourism in New Zealand

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  • James Lennox

    (Landcare Research, PO Box 40, Lincoln, New Zealand)

Abstract

Global oil supply is unlikely to meet rapidly growing global demand unless oil prices rise significantly. In New Zealand, a high oil price future threatens the tourism sector, which is a major source of export income. Using a two-stage general equilibrium modelling approach, the long-run economic effects of a permanent decline in the global oil supply are quantified. The tourism sector and especially tourism exports are disproportionately affected, due to a combination of income and price effects. Impacts differ significantly by inbound tourist market segments. The most distant markets are more adversely affected, but distance is only one of several important factors.

Suggested Citation

  • James Lennox, 2012. "Impacts of High Oil Prices on Tourism in New Zealand," Tourism Economics, , vol. 18(4), pages 781-800, August.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:4:p:781-800
    DOI: 10.5367/te.2012.0147
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    References listed on IDEAS

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    Cited by:

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    2. José Manuel Ordóñez-de-Haro & Jordi Perdiguero & Juan-Luis Jiménez, 2020. "Fuel prices at petrol stations in touristic cities," Tourism Economics, , vol. 26(1), pages 45-69, February.
    3. Hyunduk Suh & Sung-Bum Kim, 2018. "The Macroeconomic Determinants of International Casino Travel: Evidence from South Korea’s Top Four Inbound Markets," Sustainability, MDPI, vol. 10(2), pages 1-18, February.
    4. Manuel Rodríguez-Díaz & Crina Isabel Rodríguez-Voltes & Ana Cristina Rodríguez-Voltes, 2019. "Determining the Relationships between Price and Online Reputation in Lodgings," Administrative Sciences, MDPI, vol. 9(3), pages 1-27, July.
    5. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    6. 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.
    7. Siamand Hesami & Bezhan Rustamov & Husam Rjoub & Wing-Keung Wong, 2020. "Implications of Oil Price Fluctuations for Tourism Receipts: The Case of Oil Exporting Countries," Energies, MDPI, vol. 13(17), pages 1-17, August.
    8. Tafazal Kumail & Wajahat Ali & Farah Sadiq & Syed Mudasser Abbas, 2023. "A step toward tourism development: do economic growth, energy consumption and carbon emissions matter? Evidence from Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 3985-4005, May.
    9. Balli, Hatice Ozer & Tsui, Wai Hong Kan & Balli, Faruk, 2019. "Modelling the volatility of international visitor arrivals to New Zealand," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 204-214.

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